How to donate cryptocurrency

In December 2017, an anonymous cryptocurrency investor who called himself \"Pine\" founded Pineapple Fund as an \"experiment in using cryptocurrency for charity.\" Pine donated $55 million worth of Bitcoin to 60 different charities that focus on areas ranging from environment and mental health to social justice and homelessness.

Charitable donations through cryptocurrency have become the choice of more and more individuals and organizations. Some of the world\'s largest charitable organizations, including the Red Cross and United Way, accept cryptocurrencies.

Since 2018, GiveCrypto.org has been working to alleviate poverty through direct community-based cryptocurrency donations (Coinbase CEO Brian Armstrong is one of the founders). In 2019, UNICEF announced that it had become the first United Nations organization to hold and trade cryptocurrencies through a designated cryptocurrency fund. You can also learn more about Daffy, a donation platform that gives all donations in cash to non-profit organizations and charities, and allows you to choose from the more than 1.5 million organizations Daffy supports.

The ability to quickly and anonymously donate money from any country in the world without incurring high fees is a technological innovation unique to cryptocurrencies that makes donating more efficient, fair and simple.

Cryptocurrency is private

Cryptocurrencies can help address privacy and data protection issues that are increasingly relevant to donors. A 2022 survey conducted by Ipsos on behalf of Google showed that the vast majority of Americans of all ages express concerns about the privacy and security of personal data in charity.

Donating cryptocurrency directly to charitable organizations can better protect personal information and may also use more money for causes you care about.

Cryptocurrencies can enjoy tax benefits

Suppose you purchased US$2,000 worth of Bitcoin in April 2021, when the price of a Bitcoin was US$60,000. As of April 2024, the price of a Bitcoin is US$66,000, and the fair market value of the Bitcoin you own is now US$2,200. You decide to donate the entire amount to your favorite charity that is recognized by the IRS. Here are two ways to donate:

Sell Bitcoin and donate dollars: If you sell Bitcoin first and donate dollars, you may incur long-term capital gains tax of up to 20%(excluding additional health insurance surtax or state and local taxes), which is approximately $440.

Final donation amount: approximately US$1,760.

Direct donation of Bitcoin: If you donate Bitcoin directly, the donation is tax-free and can play a greater role. If you donate Bitcoin directly, you may not have to pay capital gains tax on Bitcoin.

Final donations received: approximately US$2,200.

Institutions have lower costs to process cryptocurrency donations

According to the 2020 Global Giving Trends Report, 63% of donors around the world prefer to donate online via debit or credit card. But if they use credit cards, the donations they actually receive will be reduced, as fees ranging from 2.2% to 7.5% are also deducted (according to Charity Navigator, a nonprofit organization that rates online donation-processing platforms).

How big will the difference be? Let\'s say you want to donate $1,000.

Donate via credit card: The agency will incur a maximum of US$75 in fees.

Final donation received: US$925

Donation via cryptocurrency: Donating the same amount in Bitcoin will incur a transaction fee of approximately US$8.70 (based on the median transaction fee as of April 6, 2021 provided by CoinMetrics.io).

Final donations received: US$991.28

Which non-profit organizations accept cryptocurrencies?

Whether you want to support initiatives on clean water, early childhood education or human rights, dozens of organizations are ready to accept cryptocurrency donations. Here are a series of popular options:

Daffy Charitable: With the Daffy mobile app, you can easily donate cryptocurrency to more than 1.5 million organizations, and the non-profit organizations and charities of your choice will receive cash funds.

Electronic Freedom Foundation: \"The Electronic Freedom Foundation was established in 1990 to advocate respect for user privacy, free expression and innovation through impact litigation, policy analysis, grassroots activism and technology development. We strive to ensure that rights and freedoms are strengthened and protected as technology uses grow.\" Accepted: Bitcoin, Bitcoin Cash and Ethereum.

Freedom of the Press Foundation: \"The Press Freedom Foundation is committed to maintaining and strengthening press rights guaranteed by the First and Fourth Amendments through a variety of means, including developing encryption tools, documenting attacks on the press, training newsroom staff on digital security practices, and advocating for the public\'s right to know.\" Accepted: Bitcoin, Bitcoin Cash, Ethereum, Litecoin and ZCash.

GiveCrypto.org: In 2018, Coinbase co-founder Brian Armstrong founded the nonprofit organization GiveCrypto distribute cryptocurrency to people living in poverty. GiveCrypto has distributed more than $300,000 in cryptocurrency to more than 5,000 people in 13 different countries. Accepted: Bitcoin, Bitcoin Cash, Ethereum, Litecoin and USDC sent via Coinbase Commerce.

Greenpeace: \"Greenpeace is a global independent movement that uses peaceful protests and creative communication to expose global environmental issues and promote solutions critical to the future of Greenpeace.\" Accepted: Bitcoin.

Internet Archive: \"We started collecting Internet archives in 1996, when Internet applications were just beginning to emerge. Like newspapers, content posted online is short-lived, but unlike newspapers, no one saves it. We now have access to more than 20 years of web history through Wayback Machine, and we also work with more than 625 libraries and other partners through the Archive-It program to identify important web pages.\" Accepted: Bitcoin, Bitcoin Cash, Ethereum, XRP and ZCash.

Human Rights Foundation: \"We are a non-partisan, non-profit organization committed to promoting and protecting human rights globally, with a focus on closed societies. The Human Rights Foundation unites people in the common cause of defending human rights and promoting liberal democracy. Our mission is to ensure that freedom is maintained and promoted around the world.\" Accepted: Bitcoin and Ethereum.

Khan Academy: \"Khan Academy provides exercises, instructional videos and personalized learning dashboards to help students learn at their own pace both inside and outside the classroom. We offer courses in mathematics, science, computer programming, history, art history, economics and more. Our mathematics tasks use state-of-the-art adaptive technology to identify students \'strengths and learning gaps and provide them with guidance from kindergarten education to calculus courses.\" Accepted: Bitcoin, Bitcoin Cash, Litecoin and Ethereum.

Rainforest Foundation: \"The Rainforest Foundation is fighting for land rights locally for indigenous people. We help indigenous people strengthen land security and train indigenous communities to use technology to protect forests. We invest directly in indigenous communities to provide indigenous people who actively protect their ancestral lands with the tools, training and resources they need to protect rainforests.\" Accepted: Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

The Reagent Project: \"The goal of The Reagent Project is to coordinate the allocation of excess scientific equipment and reagents that are idle in laboratories across the United States to outstanding researchers who lack resources and need them.\" Accepted: Bitcoin, Bitcoin Cash, Ethereum, Litecoin and USDC sent via Coinbase Commerce.

Red Cross: \"The International Red Cross and Red Crescent Network is the largest humanitarian network in the world, with offices and activities in almost every country and region. All Red Cross and Red Crescent activities revolve around one purpose: to help those who suffer equally, whether during conflicts, in response to natural or man-made disasters, or as a result of chronic poverty.\" Accepted: Bitcoin sent via Bitpay (Note: Bitpay may charge a conversion fee).

Tor Project: \"In Project Tor, we fight every day for everyone to have private access to the uncensored Internet, and Tor has become the most powerful online privacy and freedom tool in the world. But Tor is more than just software. This is a loving work by people from all over the world who are committed to the cause of human rights.\" Accepted: Bitcoin, Augur, Dash, Litecoin, Monero, Stellar Lumen, ZCash and Ethereum.

The Water Project: \"The Water Project is a 501(c)(3) non-profit organization dedicated to providing reliable domestic water to communities in sub-Saharan Africa that suffer unnecessarily from a lack of clean domestic water and adequate sanitation facilities, thereby promoting local development.\" Accepted: Bitcoin, Bitcoin Cash, Ethereum, Litecoin and USDC sent via Coinbase Commerce.

United Way: \"United Way envisions a world where everyone has a chance to succeed and entire communities thrive as a result. With the help of millions of people around the world, we are moving closer to this goal every day. Our work is driven by the enthusiasm of 2.8 million volunteers and 9.8 million donors who dedicate their time, money and hearts to improving the lives of others.\" Accepted: Bitcoin sent via Bitpay (Note: Bitpay may charge a conversion fee).