For the philanthropist inside you, there is great news! Prominent charities running across the globe have now started receiving donations in the digital currency Bitcoin. Among the leading charities that have started embracing Bitcoin as a mode of soliciting funding are Save the Children, Greenpeace and American Red Cross.
Ettore Rossetti, Director, Social Media and Digital Marketing at Save the Children said, “There is a sense that this is growing in acceptance in the nonprofit sector.” Save the Children became a beneficiary of Bitcoin donations in fall 2013 and has since raised nearly $10,000 via Bitcoin campaigns so far.
But Why Bitcoin?
Lending his weight behind the digital currency, Mr. Rossetti remarked that, “We want to remain contemporary and relevant to current and future generations. We don’t only want to be your grandmother’s charity, we want to be your grandchild’s charity. One way to do that is to accept Bitcoin.”
Other than the advantage of being a future currency, many charities are now favoring Bitcoin because of higher net proceeds and eased concerns about volatility. Generally, charities seek the services of Bitcoin payment processors such as BitPay who charge a minuscule percentage in transaction fee and reduce the volatility risk. BitPay doesn’t charge a transaction fee for charities or donors to ensure that the nonprofits receive 100% if the proceeds.
The American Red Cross entered into an agreement with BitPay last year, to accept donations in Bitcoin.
Bitcoin Donations to Pick Up?
The trend of donating Bitcoins to charitable organizations involved in humanitarian work may accelerate with the involvement of the world’s biggest nonprofits. Many small- and medium-sized charities may opt for similar measures to not miss out on valuable funding. Increased donations are also expected since the Bitcoin ecosystem is rapidly expanding and the transaction charge is basically nil for donors.
