With blockchain technology, it has become easy to make large transactions with top-notch safety. Due to this, there has been a surge in online donations.
According to Blackbaud, online giving has increased from 6.4% in 2013 to 8.5% in 2018.
But why are people using Bitcoin for philanthropy? The reason lies in the nature of the technology: bitcoin transactions do not attract taxation. Also, as this transaction is out of the banking system’s gambit, there is an additional fee to facilitate it.
So who is getting all this money? Many large organizations are getting this money. Like Paxful’s #BuiltWithBitcoin initiative is on a mission to build 100 schools with Bitcoin donations and has already completed three.
Another initiative known as Alice, a social funding and impact management platform built on the Ethereum blockchain, has focused on incentivizing charities to help more. The Water Project Charity has also embraced cryptocurrency to further their mission of providing clean and hygienic drinking water to the sub-Saharan population.
The recent use of bitcoin was seen in COVID 19 charities. The Giving Block launched the #CryptoCOVID19 alliance along with other charities like Paxful’s Africa Fund to ensure that there are enough PPE kits along with other essential supplies within African countries. All of these, too, were funded entirely by cryptocurrencies.
So in the future, it looks like Bitcoin and philanthropy will go in hand to hand. A lot of people will use Cryptocurrency to donate and create a channel with zero intermediaries and a reduced reliance on traditional banking systems.