Is it Better to Donate Crypto Assets to a Charity rather Than Fiat?

Are you considering donating to a charity? There are many advantages to donating crypto assets to a charity rather than fiat. A major advantage is that it lowers your crypto tax. We’ll look at the benefits of donating crypto assets to a charity (rather than fiat) so you can decide which works best for you.

Advantages of donating crypto assets to a charity

● No need for banks or banking fees

Although fiat money and crypto are relatively the same amount of assets for a charity, donating crypto assets does not need a bank. You can send money to anyone around the world at any time without the need for a bank or government intervention. What this means for you is that there are no high bank fees or tedious banking applications.

● Save on tax

You need to pay a fiat tax when you donate to a charity. According to the IRS, donating cryptocurrency is not taxable. When you donate crypto directly to your charity, you don’t owe taxes on it when you file for tax.

● You can claim a charitable deduction

Donations to charities are tax deductions with either fiat or crypto. If you donate your crypto to a charity, you will qualify for a charitable deduction that fits the market value of the cryptocurrency (depending on how long you held your crypto). You can benefit from tax deductions as long as you ensure that you are donating to a qualified charitable organization.

● Secure transactions are paid directly to charities

When you donate fiat money to a charity, you are putting your trust in the government or an organization to retain the value of the money and donate it on your behalf. When you donate crypto, you can donate directly through crypto wallets to the organization itself, ensuring that the charity receives your contribution. Crypto decentralized networks let you track where the money is going and are more secure and transparent than centralized networks.

● It’s private

Decentralized systems focus on privacy and protecting user data. You won’t have to worry about privacy issues or getting hacked when you donate with crypto. Donating crypto to a charitable organization is done directly and if the organization is using a crypto wallet, your personal information and other important details are not tracked or stored.

Charities that accept crypto

Crypto lets you donate to charity organizations across the world quickly and easily without high transaction fees. It is easier to donate to charities that accept crypto directly so you can gain the benefits that come with donating crypto. Here is a list of qualified non-profits that accept crypto as donations:

• Freedom of the Press Foundation — helps maintain transparency and protection of the media and press and accepts Bitcoin, Ethereum, Litecoin, and ZCash.
• Greenpeace: helps to protect our Earth — accepts Bitcoin
• Human Rights Foundation — protects human rights globally and accepts Bitcoin and Ethereum.
• Red Cross: humanitarian network protecting the vulnerable — accepts Bitcoin
• The Water Project: helps bring clean drinking water to sub-Saharan Africa — accepts Bitcoin, Ethereum, and Litecoin.
• Come Back Alive: a Ukraine-based military charity that accepts bitcoin

With the current warfare going on in Ukraine, it’s more relevant than ever for every crypto investor to learn how they can help the world around them through donations. Millions of dollars in crypto have already been raised to help the Ukrainian war efforts, and this is just in the span of less than a week since the conflict started, which shows the power we all hold.

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