We are approaching the end of 2018, and thus here we are at the most charitable time of the year. Only in 2017 $410 billion U.S. dollars were given to noble causes around the globe.
Like many industries today, philanthropy also shows signs of change thanks to cryptocurrencies and blockchain, allowing them to give more and better.
We have collected for you the four ways charities upgraded with blockchain.
1. Charities accepting donations in crypto
Already from 2013 charities have started accepting crypto-donations. Now non-profits like United Ways, Save the Children and the Red Cross all accept donations both in Bitcoin and Ethereum via Bitpay. One of the first organizations was the Bitgive Foundation, which has also introduced the GiveTrack function, which is a blockchain-based transparency initiative, making donation processes clearer for all involved.
Besides providing one more way to collect funds, charities also find cryptocurrency donations more efficient:
“When you don’t have to go through the traditional system of banks and governments, the money gets there a lot faster, it is much less expensive, [and] it is also cryptographically secure, so you know it is getting to who it was intended to get to.” said Connie Gallippi, the executive director of BitGive.
2. Crypto World of Philanthropy
Crypto holders and blockchain professionals also emerge as very generous philanthropists. For example, an anonymous crypto-investor has set up The Pineapple Fund, which supported with over 5000 Bitcoins and $55 million to different charities. Ripple has also donated $29 million to the teacher fundraising site DonorsChoose.org. In early 2018 OmiseGo and Vitalik Buterin teamed up with GiveDirectly to give over $1 million to refugee families in Uganda. In June 2018 Brian Armstrong, CEO of Coinbase, set up GiveCrypto.org, similar to GiveDirectly.org, to support populations in poverty with direct, trackable crypto-donations. These are just a few examples of philanthropic crypto-holders around the globe.
3. Blockchain gives more
Blockchain technology gives way to more creative forms of fundraising. The Charity: Water foundation is raising money by mining and selling their own digital currency, called the Clear Water Coin. The Plastic Bank foundation, supported by IBM, is helping two problems with one solution. People living in poverty are able to collect plastic waste, which the foundation exchanges for money or digital tokens secured on the blockchain. Some charities, like UNICEF Australia, asked people to donate their excess computer power to mine cryptocurrencies for causes in need.
4. Crypto Charities
One of the key issues of donations today is trust. Charities often have a reputation, and many are concerned that their funds are not arriving where these were intended. Some new organizations powered by blockchain technology allow philanthropists to track their donations from the moment of submitting, to the final destination at the cause. Organizations like Aidcoin, Crypto Charity Fund, and DonationCoin all help to establish new transparency and trust in charities.
Looking beyond the shady reputation of cryptocurrencies we see now, that crypto actually helped move noble causes a step further. Now it is time for us to pick our cause and support it with crypto, computing power, or good old fiat money.