Charity crypto: Not-for-profits are at the peak of inventiveness when it comes to chasing crypto donations, says NFT-philanthropist Tim Garvey.
Charity is something that needs organization. And organization goes hand in hand with technology. Tossing a coin to a beggar lying on the porch of the church is not the most effective way to help the needy.
People set up organizations, send delegations, and promote a variety of ways to make nonprofits more productive. For example, these days one does not have to manually donate money to charity. That hassle can be easily solved by setting up automatic payments in your mobile bank app. It can also automatically round up each payment you make so that the money on top goes to charity. But how can you be sure that the money you sent goes the right way?
When people hear the word “blockchain,” they often imagine mysterious crypto-lords sitting in a damp dungeon somewhere on a deserted island, chatting in some strange language on Discord or Telegram.
Few might think of a successful crypto-investor who was intelligent enough to invest in Ethereum five years ago to now fly on a private jet. Others may draw slightly different images. But in the end… it doesn’t matter. Blockchain is just a technology. like a pen. or a computer. And like many other technologies, it can be applied to a wide range of areas.
Charity Crypto: The Basics
Over the past few years crypto in charity has become an increasingly popular option for both individuals and organizations. Why? Well, first of all its simplicity: for example, sending some BTC just by copying the wallet address is a lot easier than doing a bank transfer. There is no problem sending crypto to other countries as well.
Perhaps the first and most famous charity case in cryptocurrency will be the Pineapple Fund. It is run by a man who goes by the nickname “Pine”. Pine claims itself to be one of the 250 largest holders of bitcoin. He turned his 5104 BTC into charity money (then in 2017 it was “only” $55 million). Paine sent it to a bunch of different funds: Watsi, BitGive, Quill, Maps, Possible, and more.
The name of the philanthropist remained unknown because he (or she) decided to put it this way: “I’m going to remain anonymous because I’m not talking about the Pineapple Fund. I consider this project a success. If you’ve ever been blessed with a crypto fortune, consider supporting our world with what you want.”
And that’s the best thing about crypto in charity – it becomes very easy to remain anonymous, which is an important factor for many people.
These days Red ross, United Way and even UNICEF also get donations in crypto. And it’s not just a few solo enthusiasts who donate money — the amounts are quite impressive: Clients of Fidelity Charitable (a donor-advising fund that helps you dedicate money to charitable purposes) raised more than $28 million in 2021. Donated $331 million of cryptocurrency. 2020. It’s clear as crystal – the more investors you have, the more donations grow.
next steps
Investing in crypto has been huge over the past few years. In fact, Binance, one of the largest investment platforms, has launched its own charity program. NFTs, DAOs, Web3, Smart Contracts – a few years ago these terms seemed vague. Now they are being discussed on the internet.
Una Ocili, associate dean at the Lilly Family School of Philanthropy at Indiana University-Purdue University Indianapolis, told the WSJ: “Cryptocurrency has the potential to expand the pool of donors. In particular, younger donors. Millennials and Gen Zs compare to others. There are more chances of owning cryptocurrencies, and many more are starting to get involved in philanthropy.”
Blockchain works not only as a way to send money, but also as a community building factor. In March 2022, NFT-artist Nadya Tolokonnikova was raising funds to support Ukrainian civilians suffering an invasion by Russian forces. He hosted an auction on PartyBid – a tool that allows people to bid for something with a collective effort and collectively. A total of 3,271 people bid – most of them came to know about the auction through the NFT-community.
However, this case also shows us that donations to blockchain are no longer just about early technology. Blockchain is Evolving – Many say that bitcoin is becoming obsolete. New coins and DAOs are emerging, creating new opportunities. Consider the above case with collective NFT-ownership. But this isn’t the end of it.
Charity Crypto: Smart Contracts
Most NFTs are part of the Ethereum (not bitcoin) blockchain due to smart contracts. Smart contracts – a set of promises specified in digital form – existed long before Ethereum or Bitcoin. Basically, a vending machine giving you a can of Coke is also doing a smart contract. Not to mention bitcoin, which can automatically process a lot of operations. But it is Ethereum and other new blockchains that have broadened the range of these opportunities (don’t worry, we’ll be getting back to charity soon).
With a smart contract on Ethereum, you can encrypt a lot of things in your transactions. For example, if you are selling an NFT, you can create a smart contract that will ensure that you receive a certain percentage from each subsequent sale. Why not organize something similar with charity?
Some time ago “Charity Kiss” created a collection of NFTs that could create an endless cycle of donations – 14% of any secondary sales go to charity (with primary sales this goes up to 70%).
Basically, it’s a charity tax encrypted in an artwork – isn’t that what we’re all looking forward to? Is it possible through physical donation? Well, theoretically one can imagine that a painting is being sold with a stack of papers which determines some subsequent actions. But in reality, it is much less clear.
“Charity Kiss” is just one project – while there are organizations that are solely dedicated to promoting charity within decentralized communities. For example, “Crypto for Charity” encourages people to donate crypto to save tax.
By donating you can avoid paying capital gains tax on your crypto gains and receive a federal income tax deduction.
donating crypto
Basically, this means donating to crypto can be even more rewarding than any of the old ways. One of those organizations is the RAA, which aims to promote philanthropy within the Web3 community. They do this by providing legal and financial consultation as well as helping to implement new technology. That’s exactly what he did with the aforementioned “Charity Kiss” project.
Another major issue is the unification of Web2 and Web3 – doing so through donations is another big mission.
Dozens of Web3 start-ups attract substantial funding each month – the Metaverse is probably the most lucrative place online at the moment. Now imagine if at least part of these new approaches would be adopted by nonprofits. In fact, crypto in charity has just started to take shape, and it is extremely interesting to see this front-end.
About the Author
Tim Garvey entered the crypto community in the ICO era, participating as a crypto marketing strategist on the seeding phase of the Sensorium Galaxy metaverse. Being a multi-role creative director, he rediscovered himself as an NFT-philanthropist (RAA) and an expert in the fields of DeFi and Web3 Marketing (JETA).
Have something to say about charity crypto or something? Write to us or join the discussion in our Telegram channel. You can share us on Tik Tok, Facebook, or . can also catch Twitter,