There is no denying the incredible benefits blockchain technology and crypto have had on our lives, and the rising popularity of cryptocurrencies has naturally led users to seek its utilization for an array of use cases, including charitable causes.
One of the crypto projects rising to this challenge is blockchain-powered project Gather, who have taken it upon themselves to provide users with a seamless mechanism to make charitable contributions. Organizations can generate rewards by simply plugging in Gather on their website and the passive proceeds can then be utilized for charity.
Before we take a dive into some examples of popular crypto products that help give back to the community, it is pertinent to have a quick overview of how cryptocurrencies enable this noble cause.
Enter the World of Crypto-Powered Charities
The crypto revolution is taking the charitable world by storm. And given the current momentum, it’s easy to imagine that in the near future, almost all charities will plug into and start to benefit from the flexibility, transparency and global reach that comes with cryptocurrency donations.
Notable organizations like UNICEF, for example, are making use of cryptocurrencies for a great cause. Users visiting the ‘Hope Page’ on UNICEF’s website can opt into mining cryptocurrency for the organization. The user contributes their processing power and the mined cryptocurrency is donated directly to UNICEF.
Charities like Save the Children allow NFT (Non-Fungible Token) donations. These tokens are a unit of cryptocurrency on the blockchain and serve as a proof of ownership. They can be converted into Ether, Bitcoin or any other accepted cryptocurrency and then the proceeds can be donated to the charity.
The list of examples goes on, but a quick look at the landscape shows that crypto-powered platforms like Gather offer potential donors and organizations the perfect medium to pursue their charitable endeavors.
The Technology That Makes It Possible
Gather’s technology has made waves in other industries including advertising. Gather’s tech runs in the background of the publisher’s website, and with the consent of the user, it aggregates the idle processing power of that user’s computer. From there it distributes it to enterprises who really need it for things like cloud computing and to developers for cryptocurrency mining.
The platform uses uses a hybrid Proof of Stake and Proof of Work (PoS/PoW) consensus to ensure security while also aligning early incentives for network participants, and its native token GTH can be used for voting on the future of the network, staking for passive income, and a whole host of payment functions including loyalty programs, gas fees, and as a settlement currency.
The Big Tax Question
Many entities and donors who use donor enabling technology like Gather, may wonder whether cryptocurrency donations are tax deductible. In short, the answer is Yes.
For donors residing in the United States, the IRS has classified cryptocurrency donations as property. Whenever a donation is made to a nonprofit organization using a cryptocurrency like Bitcoin, the donor does not have to pay capital gains tax. You only have to provide a valid email address and the payment is considered tax-deductible.
This is certainly welcoming news for people who are on the lookout for a tax-efficient way to support their favourite cause. The charity also benefits from your cryptocurrency donation as it receives the full value of the contribution.
Gather is certainly providing innovation solutions in a number of areas, and now it can add efficient charitable donations to its ever growing list.