How Cryptocurrencies are Gamechangers for Charity & Philanthropy
Driving Financial Inclusion whilst enabling broader acceptance has always been the mission of WadzPay. With the adoption of Blockchain technology, transactions will be more accessible, scalable, agile, and efficient than ever before. As we move forward, we are also looking into facilitating cryptocurrency donations to non-profit organizations, especially in the post-pandemic world where more agile fund raising tactics are needed to enable charities to better plan and allocate their funds.
What are the advantages of donating in cryptocurrency?
- Time-efficient & transparent. Compared with conventional payment systems which require third parties to intervene and monitor transactions, the flow of cryptocurrency is actually much more transparent and the fund goes directly to the recipient because of the decentralized nature of blockchain. When a disaster hits, the response is time sensitive.
- Helps the unbanked/under-banked. A large proportion of those who are most at risk to disasters (natural, economic, political or social) lack proper banking facilities. As such, it is difficult for funds to reach them through traditional payment methods. Imagine a scenario where there is a flood: going to a Western Union transfer point is impractical.
- Cost-effective. They come with low processing fees — if any at all — for all parties involved. This ensures more of the donation actually goes to the non-profit’s mission. What’s more, donating cryptocurrency is a non-taxable event, meaning the recipient does not owe capital gains tax on the appreciated amount and can deduct it on their taxes (in most countries). This makes cryptocurrency donations one of the most tax efficient ways to support charities.
- Secure. As cryptocurrency goes directly to the recipient this eliminates the risk of theft, or funds being seized during times of crisis.
- Anonymous. Building on the anonymity of cryptocurrency, donors who donate in crypto can choose to remain anonymous, which helps expand the donor base for various causes. While there is accountability in the flow of money with the public ledger, it is not always tied to personal identification. For donors who wish to remain anonymous, this may prove to be a significant benefit. In the traditional model for charities, such donors would have to place trust in the organization to keep their identity confidential. For anyone who might pause to donate at this thought, contributing with crypto may help to put their mind at ease.
- Cross-border donations. Without agencies involved, you can choose to accept donations from all over the globe and avoid exchange fees and banking hold-ups while the funds are being reviewed.
As part of our social responsibilities, WadzPay will take the lead in cryptocurrency donations and aid economic impoverishment as well as improve education inequalities with a focus on the Southeast Asian Region. We will not charge fees to charity organisations.