When it comes to money, there are a lot of people out there who view it as a serious priority to use some of what they have for the good. Whether it is within their own community or in less fortunate parts of the world, to solve a problem like lack of clean water in a village or to perform important medical research, philanthropists make an enormous difference to the world. Charities and non-profit organizations therefore want to make giving money to them as easy as possible for those who want to, and also strive to improve efficiency so that the largest share possible of the money they are donating can be used for their causes.
Crytopcurrencies and blockchain are helping them do this in a few ways at the moment, and it looks as though the charity sector will continue to evolve alongside these technologies.
More and More Charities Accepting Crypto Donations.
A lot more charities and non-profits are starting to accept donations in major cryptocurrencies like Bitcoin. This gives people who want to give money to them a new option when it comes to making donations, and also allows the organizations to tap into a different audience when it comes to fundraising. Right now, you can make donations to some of the best-known charities in the world, including the Red Cross and Save the Children using cryptocurrencies. It is also thought that more charities are looking to add this facility next year.
The increase in cryptocurrency donations in the past couple of years has been huge, with the world’s largest donor-advised fund, housed by Fidelity Charitable, seeing $69 million in crypto donations in 2017 compared with only a total of $7 million over the previous two years combined. Figures for 2018 are expected to be larger still.
Blockchain and Charities.
Blockchain technology, the foundation on which crypto-transactions are based, is also something that charities are looking into. What blockchain can offer them is a way for money to be tracked all the way from the person making the donation through to the individual recipient or project the money ends up helping. This can do a lot to encourage donations, allowing people to have confidence that they will know exactly what their money is being used for. It can also allow for greater confidence in non-profits as a whole industry.
Many people are reluctant to give to large charities as they feel that too much of the money given to them gets used on overheads, rather than on aiding the actual causes. This drives people to sometimes find it easier to just try and use their money directly to help people or small causes locally, leaving the bigger operations which are naturally quite expensive to run missing out on much needed funds. By implementing technologies that can improve efficiency in highly visible ways, non-profits can not only cut their overheads down and actually use more of their funds for good, but they can also improve their reputations as a good choice of organization to give to.
Other Uses of Crypto in Non-Profits.
These are the two ways in which crypto is most impacting the charitable sector, however there are also some other interesting projects going on that use it in different ways. One of the best ways to find out about new and interesting projects is to check out cryptocurrency press release sites to get more info. One good example is BitHope, a charitable crowdfunding platform. There are also crypto coins specifically designed to generate money for good causes, such as Pinkcoin.
As you can see, the non-profit sector is using crypto and blockchain more and more, and it is likely to offer increasing benefits in philanthropy in the coming years.