Considering Cryptocurrency Donation
Why consider donating cryptocurrency?
Cryptocurrency donations are an emerging trend for charitable giving. More and more donors are looking to donate crypto to their favourite charities. In 2019 Anne Connelly published a report on the landscape of cryptocurrency donation across Canada. The report suggest that in 2019 only 4% of Canadian charities accepted donation in cryptocurrency. However, the survey showed that 29% of donors have donated cryptocurrency to charity. So, the crypto donation trend is on the rise.
Can one donate Crypto to charities that do not accept Crypto?
The short answer is yes. Charity Exchange can help increase the accessibility for donors and charities to donate and accept cryptocurrency donations.
Charity Exchange accepts Cryptocurrency donations from donors. Donors can deposit their crypto donations into their Donor Advised Fund account and receive a tax-deductible receipt for the fair market value of their cryptocurrency. Donors can then (recommend and) gift the donation to any registered charity in the countries Charity Exchange operates in.
Charites can also open a Charity Exchange account and direct donors to their charity listing page and accept cryptocurrency donations through the Charity Exchange platform.
The process of how Charity Exchange accepts cryptocurrency.
Charity Exchange users can deposit cryptocurrency into their Donor Advised Fund accounts. The fund currently accepts three types of cryptocurrency, BITCOIN, ETHEREUM and USDC.
Once the crypto has been deposited to the user’s account, charity exchange converts the currency to USDC and redeems the USDC crypto for the local fiat currency. In the US we exchange it for USD, in Canada for CAD and in Israel for Israeli Shekels. This process helps avoid potential fluctuations in the market and stabilize the value of the cryptocurrency. It ensure that the charity receive the maximum financial value intended by the donor at the time of the gift. It also allows the donor to put the funds to use immediately.
Legal Notice: Opinions in this blog post do not reflect the opinion or endorsement of Charity Exchange or its affiliates. The opinions in this post should not be used as legal or financial advice for any financial decision. The advice or opinions shared in this blog post are solely those of the author and are not the opinion of Charity Exchange or its affiliates. For legal or financial advice, always consult with your financial advisor or legal council.
