The Benefits of Donating Cryptocurrency to Charity
August 16, 2022
Donating Cryptocurrency is a GREAT WAY to support Soldiers’ Angels! Guest blog written by Brent Longnecker.
“You’ve seen numerous scandals where charitable donations end up being used for operating costs. It is very difficult to see where a donation is going, but this could change that.” – Andreas Antonopoulos, Author of The Internet of Money
Did you know that Soldiers’ Angels now accepts cryptocurrency for donations?
As cryptocurrency continues to grow in use and popularity, so do cryptocurrency donations to charities of all types. There was nearly a 600% increase in crypto/digital donations in 2021 versus 2020 based on Crypto Giving Tuesday – a giving campaign started by The Giving Block, a digital asset donation and funding platform for not-for-profits. Other companies have seen similar growth in cryptocurrency philanthropy. According to Fidelity Charity – a 501(c)(3) organization that accepts crypto – they too have seen a huge increase in crypto giving.
Of further interest, is the fact that some data suggests digital currency owners may be even more generous than stock and/or cash donor counterparts. Some 45% of cryptocurrency owners gave $1000 or more to charities in 2020, according to a Fidelity Charitable Study. Let’s investigate – so why is donating cryptocurrency so popular on the philanthropic front?
Benefits of Donating Cryptocurrency to Charity
It is safe and efficient
Combining simplicity, safety, and efficiency with sound tax benefits are great motivators for anyone thinking about donating crypto. Donating using digital currency is also safer than using a check, credit, and/or debit card. The security around blockchain transactions is intense and, as such, protects you, your donation, and the nonprofit you are donating to.
Most people who are reluctant to donate, often cite a lack of transparency. Over the last decade, we have seen trust start to crumble on many fronts. This is a significant issue for nonprofits, churches, and charities. Crypto allows you to know exactly where your money is going. Anyone who gives using crypto has the blockchain public ledger to view which adds even more visibility – and peace of mind – to the donation.
Sometimes simplicity, safety, efficiency, and transparency are not enough. Fortunately, using crypto when donating can create great tax savings. Donations to nonprofits are tax deductible. Any organization, like Soldiers’ Angels, is an IRS-designated 501(c)(3) non-profit charity that allows donors a tax deduction. Plus, rather than selling an investment – like stocks – you can donate crypto directly to Soldiers’ Angels. Avoiding the headaches of extra tax work every year should make anyone smile. All this said, please work with a tax advisor to maximize your personal tax situation and make this as much a blessing for you as Soldiers’ Angels.
Speed of execution
Apart from being an expensive and lengthy procedural process where the completion of transfer can take days and even weeks, crypto is incredibly faster than international fiat transactions. Unlike fiat/money transactions that can require signing documents and even having to go visit a financial institution in person, a crypto transaction can be completed in a few minutes from the comfort of your home.
A more inclusive financial system
People do not have to have permission from any financial authority or government to use the crypto-digital ecosystem. And typically, you don’t even need a bank account. There are literally billions of people in our world today that are “unbanked”, meaning they have no access to the financial systems. With crypto – even when you are traveling – all you need is a smartphone and you – in essence – become your own bank.
One of the best benefits of digital crypto is that it can be used to exchange value between two parties – independent of a third/middle party. This, in turn, makes the transaction freer, quicker, and more censorship resilient. Banks and other payment processors can choose to cut off services to anyone, anytime, anywhere, and for any reason. Using crypto circumvents this concern as the individual oversees their account.
Banks, Credit Unions, and Stock Markets have set days and set hours of operation. Crypto markets – on the other hand – trade 24 hours a day, seven days a week – ALL year long – without exception. The only issue crypto has to deal with as “interrupters” is a power or internet outage… which would also affect any financial institutions as well.
“Game” market donations
Crypto donations sure seem like a good idea in theory, but what about market fluctuations? Fortunately, IMMEDIATE conversions are another of the many benefits of donating cryptocurrency to charities – like Soldiers’ Angels. Your donation gets sold immediately at the then-present market value. This means the recipient can expect real money in the expected value, real-time.
Converting crypto “dust” into further goodwill
I hate “fractional shares” and “currencies” – I hate it. I LOVE rounding up to bless charities. Fractional “leftovers” in crypto are known as “crypto dust” and everyone has it as a residual problem in their eWallets. Taking advantage of these fractions can be another one of the biggest benefits of donating crypto to a nonprofit – both for them and you. A “crypto penny” here and a “crypto penny” there can add up. A wonderful “win-win-win” situation for all involved.
ENJOY ALL THE BENEFITS OF BLESSING SOLDIERS’ ANGELS WITH CRYPTOCURRENCY
Cryptocurrency seemed like a fad just a few years ago. With widening understanding and acceptance as a valid and strong motivation system. Whether it is paying for a coffee, tithing to your church, or donating to my favorite charity – Soldiers’ Angels – crypto can accomplish just about anything and everything you need it to do.
So, there you have it: The Longnecker Top 10 Reasons to use crypto to bless Soldiers’ Angels and any other charities you feel so led to bless. Fortunately for you, as donors to Soldiers’ Angels – the benefits and positives of donating crypto extend well beyond you, them, and those you bless. It is eternal and priceless.
Ready to donate crypto to Soldiers’ Angels? Click the image below to visit our crypto page!
Brent Longnecker is a long-time management consultant specializing in pay and governance. He has been recognized as one of the Top 25 consultants in the U.S. and his firm Longnecker & Associates has won numerous awards under his leadership. His new firm, 1 Reputation, works with companies and individuals on their most important legacy—their reputation. He loves to write and has 19 books and over 700 articles he has authored over his career and is excited to now be part of the Soldiers’ Angels Team as a writer. He is happily married to his wife, Shelly, and has 6 daughters and 9 grandchildren. He is a mixed martial arts sensei, certified first responder and scuba diver. He loves traveling and reading as well. He also wants our military to know how much they are appreciated and valued, so that is why he joined the Soldiers Angels Team.