What Are the Benefits of Cryptocurrency for Charities? - Coindoo

What Are the Benefits of Cryptocurrency for Charities?

Editorial Team Avatar
May 7, 2020
5 min reading time

Cryptocurrency, naturally, is helping to make the world more efficient and more adaptable in many different ways. But have you thought about the impact it might have on the way that charities are run and operate? Bitcoin and the like are not only fantastic investment opportunities but may actively help to make fundraising easier for charities and good causes the world over.

Crypto has long since been a staple of adopters looking to make the world a better place. Bill Malloy, for one, is a philanthropist who has been extolling the virtues of modern technology for the greater good. Tying in with the focus on charity, Malloy has helped to develop healthcare philanthropies as well as engineering products.

But what are the potential knock-on effects for charities adopting crypto in the future? Let’s take a closer look at some of the benefits.

Donations Are Smoother Across Borders

Source: Newsweek

One of the key reasons for adopting crypto in a charitable sense is, of course, the fact that there are no waiting times or red tape to cut when the currency moves across borders. Even with charitable giving, there are still measures in place to ensure that international currencies can clear in plenty of time. As crypto is decentralized, there is no pressure for the money to have to process through any heavy administration.

That means, for charities, there are fewer fees to clear at either side. What’s more, it means that they can actively accept donations from more people. Instead of limiting their fundraising to one or two territories, they can open up crypto, a global standard, and receive end to end transactions without fuss or hassle.

Everything Is Backed Up

Crypto is, by its very design, easy to back up. The nature of blockchain allows charities to clearly record where transactions have come from and when they are processed. Charities and non-profits need to be clear on where they receive money from. Above everything else, it is a fraud-prevention measure that ensures that they can continue to operate without needing to worry about coming under a legal hammer.

This also means that charities can benefit from greater financial protection, too. On the whole, crypto is much harder to launder than fiat money. Therefore, with clear money trails and clear indications as to where the money is coming from and going to, charities can be all the more confident in their daily fundraising.

Offer Transparency and Clarity

Modern charities should, by design, be open and clear on how they operate, and where their money and funds head to. That works both ways. Not only should those donating to charity offer clarity in terms of where the money is coming from, but charities should also be clear and concise on where the money is going to.

This will not only help charities and non-profits to become more accountable for their actions but will also foster a feeling and movement of greater transparency. In the modern age, people want to know where their money is heading, and what it is helping to do. Offering donors the chance to see what their money is helping to achieve will be a wonderful impetus to drive more donations. It’s a win-win scenario for all parties involved.

Access All Areas

As mentioned, as crypto is a global standard, this means you are going to be opening your charities up to more markets and services worldwide than ever before. Not only does it mean that red tape and administration is cut down, it means that you can start reaching out to far-flung communities who you may not have previously been able to access.

This is great news for charities who are trying to expand their operations overseas. The internet is already helping to shrink the world and the global community. With breaking down of currency barriers, you can enable more people to get involved in fundraising, and what’s more, you may even be able to raise more awareness of what you do.

Therefore, rather than limiting yourself to closed-off communities through fiat money and processing, it stands to reason that you should be able to reach out with a more fluid and flexible financial standard.

The Future of Charitable Giving

It’s safe to say that crypto is on the rise worldwide in terms of adoption. However, with there still being some lack of clarity in how governments worldwide view crypto, on the whole, it will remain to be seen whether or not charities can benefit in the long run.

However, there is still time to hold out hope. Communities in Australia are taking advantage of relaxations to crypto law. Why can’t other countries? Once crypto is widely adopted on a global scale, it will become easier for charities to start taking full advantage. Time will tell – it’s worth hoping!

Featured image: bitcoinist.com

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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