Yes – but not-for-profit organizations are always looking for new ways to attract the support of the crypto community, and demand is growing.
charity allow investors to support causes they are passionate about – and if they cryptocurrency assets rise in value, donations can be used in some countries to eliminate capital gains taxes they would have to pay on the appreciation.
According to a report by Fidelity Charitable, 2017 was a record year for donations crypto. This organization received $ 69 million in cryptocurrencies such as Bitcoin, and this claim is almost 10 times higher than the previous year.
Fidelity believes the dramatic rise in the value of Bitcoin in 2017 play a factor in this increase. He said it could accept donations crypto has opened the door for the fund, and support, which may have come from previous research and can contribute.
Meanwhile, an anonymous donor set up a fund pineapple, with 5104 BTC given to 60 charities. They time their contribution to last year “crypto bubble”, which means $ 55 million has gone to good causes.
Crypto can be mined for charity?
Several charities have been exploring this concept with some success https://crypto-genius-reviews-guide.sitey.me/.
For 59 days in early 2018, UNICEF launched an initiative called Chaingers game, which aims to inspire young people to do something good for the community.
a children’s charity appealed to people with powerful graphics card in their PC, such as gamers, to use their spare computing capacity to mine Ethereum.
More than 12,000 computers were collected during an appeal and a total of 85 ETH (about $ 36,000 at current rates) were raised. Funds go towards helping children affected or displaced by civil war Syria.
For charities, this could be a way to attract supporters who may not have the make a financial contribution, but still want to help.
However, such schemes are not always perfect. Mining can be energy intensive and even harmful to the environment, means charity walk a fine line in doing more harm than good. UNICEF stressed that the initiative did not produce additional electricity usage, preventing participants from racking up a hefty bill.
How do you know the donations are being used correctly?
The scandal has hit confidence in the charitable sector, but blockchain and cryptocurrency could improve accountability and transparency.
Unlike conventional charity, where the progress of a particular campaign can be difficult to verify, smart contract at blockchain can be used to ensure that the fund is only released to the organization once they can prove their work has an impact. Failure to meet certain targets could even lead to donations being canceled.
This concept has been tested by St Mungo’s, a charity for people desperate in London. It works in conjunction with blockchain platform called Alice to launch a fundraiser that aims to raise $ 66,000 to help the long-term 15 sleeping rough rebuild their lives.
Here, donors can keep track of how sleep rough advanced, with charity progress independently verified by local authorities.
Why do some of us struggle to charitable trust?
There are repeated stories of misappropriated funds by charities, and other stories from the organization being too aggressive when they try to get donations.
Corruption can be a big challenge for aid organizations, and the money sent to poor countries did not always reach the recipient. Several charities have also been accused of lacking transparency, either by not disclose how much money from donations goes towards paying staff or administration, or by refusing to disclose how much money they have in reserve. Pays compensation for top executives have also been angered donors in some cases.
Blockchain enable the audited financial openly, make sure the charity accountable. The decentralized nature of which also removes the banks, so that the funds will be sent directly to those in need without any intermediary.