ZoneBitcoin EditorialIf we tend to think of bitcoin as a financial asset coveted by financial institutions, the fact remains that in the associative and humanitarian field, it has always had a leading role and importance.
For the record, it is wise to recall that the bitcoin donation dates back to the first concrete uses of the network, and more precisely in 2010. It was at this time that bitcoin users suggested using bitcoin donations to help Julian Assange and WikiLeaks to overcome the banking bans that the organization was experiencing.
Bitcoin can, in fact, be very useful when raising funds for associations and NGOs. Thanks to its unique characteristics such as transparency, security and speed of transactions, cryptocurrency offers new possibilities to support the causes we care about.
In this article, we will explore how Bitcoin can help associations and NGOs raise funds more efficiently and transparently.
Donating in Bitcoin offers several advantages for associations and NGOs
Before diving into the details of Bitcoin fundraising, it is important to understand how Bitcoin donation works in practical terms. When an association or NGO accepts Bitcoin donations, it provides a Bitcoin address to donors. Donors can then send Bitcoins to this address using their Bitcoin wallet. Once the transaction is confirmed on the blockchain, the Bitcoins are transferred to the association or NGO, which can then use them to finance its projects and programs.
What we want to show here is the simplicity of the approach. There are no documents to submit, administrative processes to follow or even technical complexity for institutions.
The advantages of donating in Bitcoin for associations and NGOs
Donating Bitcoin has many advantages for associations and NGOs. Here are some of the main benefits:
Increased transparency
One of the main benefits of donating Bitcoin is the increased transparency it offers. Indeed, each Bitcoin transaction is recorded on the blockchain and is visible to everyone. This means donors can verify that their donations are used appropriately and that funds are allocated to intended projects and programs. This increased transparency strengthens donor confidence and promotes long-term collaboration with associations and NGOs. Many people doubt whether their donations are actually used; This is then a way to respond to this fear in a simple way.
Reduced transaction fees
Bitcoin transaction fees are generally much lower than those associated with traditional fundraising methods, such as international bank transfers. Associations and NGOs can thus save on transaction costs and devote a greater portion of donations to the projects and programs they support. There is no need to rely on banking systems or processors which can be costly and time consuming to set up.
International financing
Another advantage and not the least concerns the fact that everyone can finance without any monetary barriers linked to national or local currencies. When associations accept bitcoin (or other cryptocurrencies), they can immediately accept payments from around the world. Bitcoin is a borderless digital currency, meaning it can be used and accepted anywhere in the world. This opens up new possibilities for associations and NGOs to raise funds from a global audience.
Speed of transactions
Bitcoin transactions are generally very fast, especially when compared to international bank transfers which can take several days or even weeks. This speed of transactions allows associations and NGOs to receive funds more quickly and use them immediately to meet urgent needs.
Circumvention of prohibitions
Just as with WikiLeaks which was prevented from receiving funding and which had to use bitcoin to circumvent the ban, many associations are faced with this same problem. When a political regime decides to prevent access to funds for associations, bitcoin appears as a leading alternative. No authority can prevent an individual from receiving bitcoin. In this way, it is an ideal tool to counter resistance.
For example, at Nigeria, political opponents found funding in bitcoin while the regime had dismantled their organizations. Thanks to bitcoin, activists continued their activities.
Which associations appeal for bitcoin donations?
Many associations are already calling on cryptocurrency donations to raise funds. Here are some examples here:
- United way worldwide : United Way is a global organization working to solve problems of poverty and education. They accept Bitcoin donations through their partnership with The Giving Block.
- Human Rights Foundation (HRF) : The HRF is an international organization that defends human rights around the world. They accept Bitcoin donations to fund their human rights initiatives. Furthermore, the association regularly organizes competitions to finance projects working in the humanitarian field with bitcoin.
- Save the Children : Save the Children is an international organization defending children's rights. They have started accepting Bitcoin and Ethereum donations to support their programs around the world.
- The Water Project : This organization is dedicated to providing access to clean water in disadvantaged communities. They accept Bitcoin donations to finance their projects.
- Built With Bitcoin : This is an association that helps people in Rwanda in different areas: education, access to resources, etc. The particularity of the foundation is that it is entirely financed in bitcoin. –>Built With Bitcoin: An NGO that helps disadvantaged populations using bitcoin
- Electronic Frontier Foundation (EFF) : The EFF is an online civil liberties and digital privacy organization. They accept Bitcoin donations to support their work protecting digital rights.
- BitGive Foundation : BitGive is a nonprofit organization dedicated to using blockchain technology to solve social and environmental problems around the world. They accept Bitcoin donations to finance their philanthropic projects.
- Wikimedia Foundation : The Wikimedia Foundation, which supports Wikipedia and other Wikimedia projects, also accepts Bitcoin donations to fund its operations.
- WikiLeaks: It was the first international organization to accept bitcoin as a donation.
It should be noted that this list is far from exhaustive and there are many other organizations around the world that also accept Bitcoin donations. The trend toward accepting cryptocurrencies as a form of donation continues to grow, reflecting the increasing adoption of this technology in the philanthropic sector.
What tools are available to NGOs to accept bitcoin funds?
There are several tools and platforms for NGOs and associations to help them accept bitcoin donations.
We can cite the platform The Giving Block is a technology platform that facilitates cryptocurrency donations to charities. Founded in 2018, this platform allows charities to receive donations in a variety of popular cryptocurrencies, such as Bitcoin, Ethereum, and other altcoins.
Among the associations and NGOs registered on the platform, we find well-known institutions such as Save the Children, No Kid Hungry, Oxfam and Médecins Sans Frontières to name just a few.
The Giving Block offers a complete solution for charities that want to accept cryptocurrency donations. This includes setting up technological infrastructure to accept these payments, converting cryptocurrencies to fiat currency where necessary, and regulatory compliance.
In addition to facilitating donations, The Giving Block also helps charities raise awareness and educate their community about the benefits of donating in cryptocurrencies. They provide resources and tools to help organizations promote this donation option to their supporters.
How are bitcoin donations taxed?
Taxation of Bitcoin donations for nonprofits may vary depending on the jurisdiction in which the organization is registered and tax regulations specific to that region.
However, it is good to know that donations in Bitcoin are reported in the same way as donations in fiat currencies like euros or dollars. Charities must keep track of donations received, including the Bitcoin value at the time of donation and any conversion to fiat currency that may be made.
In many jurisdictions, Bitcoin donations are treated the same as cash or stock donations. This means that donors may be eligible for tax deductions for their Bitcoin donations, just as they are for fiat currency donations.. Nonprofits must comply with local tax regulations regarding donation reporting and tax receipts for donors.
Finally, when charities receive Bitcoin donations, they can choose to keep them as Bitcoin or convert them to fiat currency. If they decide to convert the Bitcoin to fiat currency, they may have to pay capital gains taxes, depending on how long the Bitcoin was held before the conversion and local tax laws.
Conclusion
Bitcoin offers many opportunities for associations and NGOs to raise funds more efficiently and transparently. It is also a boon for associations that have difficulty accessing global financial systems, such as those operating in countries with authoritarian political regimes.
Thanks to the transparency offered by blockchain technology, donors can have confidence in the use of their funds and track the impact of their donations in real time. Additionally, fast, low-cost Bitcoin transactions allow associations and NGOs to receive funds more quickly and use them immediately to meet urgent needs.
By adopting Bitcoin as a means of fundraising, associations and NGOs can expand their reach and attract new donors from around the world. Bitcoin therefore clearly represents an opportunity for associations and NGOs to make a difference in the world.
Without forgetting Btcpay which offers a crowdfunding tool, in order to receive your bitcoin donations in lightning or onchain directly on your wallets