The New Age of Charity: Crypto Philanthropists


Jul 2, 2019
Many charity organizations are adopting Bitcoin and cryptocurrencies as methods of receiving donations. There are even those that use this system to give out aids in emergency cases. The reason for adopting this innovative method of donation revolve around the flexibility of the Bitcoin and cryptocurrency payment systems and other intrinsic benefits that come with it. This development, and the events around it, gives the impression of what many people refer to as the new age of charity: Crypto Philanthropists.

UNICEF has adopted Cryptocurrencies for donations

Just recently, global aid platform UNICEF announced that it would be taking donations in cryptocurrencies. This is a big plus and a sign of mainstream acceptance for the technology, having previously received a lot of backlash from the government and affiliated agencies. Some cryptocurrency enthusiasts even think that UNICEF arrived late to the scene, as using crypto for charitable causes is an implementation that has been around for a couple of years already.

There are a couple of reasons why Bitcoin and cryptocurrencies are quickly becoming the darling of charity organizations. These reasons are not far fetched, as they form some of the basic characteristics of this emerging payment system. These are arguably the reasons behind the emergence of what is described as the new age of charity: Crypto Philanthropists. Some of the reasons are as follows:

  • Crypto payments are instant
  • Donors pay very negligible or no fees at all when making transactions
  • Using cryptocurrencies makes it possible to donate even very little amounts
  • By adopting crypto payments and blockchain technology, charity organizations can prove their integrity, since payments can be tracked to ensure that they are channeled to the right targets
The Impact of Cryptocurrency in Charity

The revolution caused by implementing crypto systems in charity is visibly clear. A typical example in this area is the extraordinary surge in donations received by Fidelity Charitable, shortly after adopting crypto donations. Before adopting crypto donations, the organization received a total of $7 million dollars over a period of two years (2015–2016). Immediately after adopting crypto payments, the amount received by the same organization in 2017 alone was $69 million in cryptocurrencies.

The Binance Charity Foundation (BCF) is another example that explains the benefit of cryptocurrency in charity. With the goal of achieving a 100% transparency in philanthropy, the Binance Charity Foundation does not only take donations in crypto, but also distributes such using the same technology. This method makes it easy to track, audit and give report of the foundation’s activities without any complications.

Global Charity is embracing Crypto more

With the example of Fidelity Charitable above, it is obvious that the willingness of donors increased drastically with the implementation of crypto systems of donations. The reasons for this could be linked to factors like convenience, affordability and increased trust, among other reasons. Little wonder why many other charity platforms are adopting these methods, including the above mentioned UNICEF of global recognition.

With platforms like Vertex.Market that make it easy for users to buy Bitcoin and other cryptocurrencies, the initial barrier in this area has been removed. Unlike before, or as it still is with many platforms, you do not need to go through rigorous processes to purchase cryptocurrencies anymore. In a matter of minutes, you can buy as much Bitcoin and crypto as you like on the Vertex peer-to-peer platform using bank transfer.

There are a number of charity organizations that exists today where donations are made using cryptocurrencies. BitGive, Coinbase, Amazon Fire, Give Directly, Pineapple Fund, Charities Aid Foundation are a few of the growing lists of platforms where cryptocurrency is enabling people to give to the needy. The good thing with many of these platforms, as emphasized by Binance, is the verifiability of transactions. This is one of the fundamental factors that has given birth to the new age of charity: Crypto Philanthropists.