Cryptocurrency Donation: Now, with the increasing popularity of cryptocurrencies, many charities have started accepting donations in digital currencies. Many international charities also accept bitcoin and other cryptocurrencies as donations.
With the increasing popularity of cryptocurrencies, the methods of donation have also changed. In April, when India was battling the second wave of COVID-19, Ethereum co-founder Vitalik Buterin donated approximately $6,06,110 (about Rs 4.5 crore) worth of ETH 100 and MKR 100 to the country's COVID-19 relief fund. Donation given. Apart from Vitalik, Australian cricketer Brett Lee also donated 1 bitcoin to the PM Cares Fund in the same month. At that time, the value of bitcoin was $50,000 (about Rs 37 lakh).
Polygon co-founder Sandeep Nelwal organized a crypto COVID-19 relief fund, which got the support of several investors and entrepreneurs including angel investor Balaji Srinivasan. Now, with the increasing popularity of cryptocurrencies, many charities have started accepting donations in digital currencies. Many international charities also accept bitcoin and other cryptocurrencies as donations.
In such a situation, today we will tell you what are the benefits of donating in cryptocurrency?
Donation in crypto gives tax benefit
The biggest advantage of donating in cryptocurrencies is the saving of tax money. For example, in the US, a person invested $2,000 (approximately Rs 1.48 lakh) in cryptocurrency a year ago. Then, after a huge surge, the person decided to donate part or all of it. Let's say the value of the investment increased to $5,500 (approximately Rs.4.09 lakh). If the investor donates it in US dollars after liquidating it, then a long term capital gains tax of up to 20 percent can be levied on that person. However, if the same person decides to donate the amount directly in bitcoin, there will be no such deduction on cryptocurrencies.
transaction cost
The transaction cost for the organization receiving the donation is also less as compared to the amount received through credit or debit card. According to a report by Coinbase, processing fees on credit card transactions can be anywhere between 2.2 percent to 7.5 percent. This deduction is made from the principal charity amount. Let's say you want to donate $500 (approximately Rs 37,000) to a charity that accepts bitcoin. If you make this donation through a credit card, which incurs a processing fee of 5 percent, then the charity will get $ 25 (about Rs 1,800) less. But if you donate the same amount in cryptocurrencies, then you will be saved from this deduction.
Which organizations accept donations in crypto
Despite its popularity, almost everyone knows how uncertain the prices of cryptocurrencies can be. Its use is increasing, but it is still nowhere close to replacing the mainstream currency. However, many organizations such as Unicef, Save the Children, Freedom of Press Foundation, Internal Archive, Human Rights Foundation, American Red Cross and Cold Water Project have started accepting donations in cryptocurrencies.
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