Can Blockchain Help Charities?
Along with the financial and banking sector, Blockchain is now also ready, to begin with, donations and charity also termed as the social cause. The increasing use of the Bitcoins, blockchains or any other kind of digital currency has now begun its journey towards charities which is also emerging as the latest trends. However, there are very few charities that are accepting the digital coins, but there are some new aspects that have begun with innovatively using digital tokens.
No doubt, this makes charities quite secure, there are still some issues that raise the debate if the blockchains are good for charities or not.
Let’s check out some facts that would help you in understanding if the blockchain can be helpful for charities:
Fundraising through bitcoins
Since the past few years, various foundations and charities have begun with using Bitcoin for donations. Many popular organizations from across the world have started with bitcoins, with the establishment of an online wallet for charities. Through the wallet, the charity institutions carry out fundraising which is later exchanged for having fiat currencies, mostly dollars. Certain online wallet providers don’t charge the transactions when made to nonprofit organizations while some charge around 2% which is quite nominal. This means, through bitcoins, 100% amount is obtained from charities which are also deductible in tax. Hence, for the businesses, this becomes a capital gain. Not only the Government charities, but even the private charities have started accepting Bitcoin which help in fundraising.
Along with blockchain, the digital coins, also known as charity coins have provided with adequate support for the nonprofit organizations. Various digital currencies are purchased and sold for making a profit through the online exchange. However, the same is also carried out for a social cause. They come with tracking numbers and are designed for a specific social purpose only. Similarly, there are some charity coins, which come with dual usage. This means, they are used in the form of donations, as well as are also used in the form of investment for getting particular returns from them. Such charity coins are termed as cryptocurrency exchanges and are also widely used in compared to other commercial digital currencies.
Crypto foundation is yet another concept of charities with blockchain. This type of charities is for the donors who think that once they have got sufficient money, they can donate a particular amount as money doesn’t matter for them as before. Again, some foundations or charities are created or established purely through votes for financial distribution which is also governed by external shareholders to produce more funds and project ideas to invest it for a social cause. For this, tokens are created, and the charity is carried out with the exchange of the tokens.
No doubt, the blockchain, and other digital currencies are replacing the traditional way of charities or donations; they are still found to be with the promising innovative sector.