The financial landscape has been rapidly evolving over the last few years and cryptocurrency has now become an established form of monetary distribution for both investors and philanthropists. With no central bank required, the decentralised currency has become a crucial form of financial freedom for those living under financially-controlling governments.
Besides cryptocurrency’s utility, it has also been popular as an investment opportunity, with both long-term investors and retail investors sending crypto prices to new heights. A study by The University of Cambridge found a total of 101 million users signing up for cryptocurrency trading platforms in 2020, nearly a 200% growth from 2018 to 2020.
In addition to those seeking financial freedom and looking to capitalise from both short and long-term investments, the philanthropy world has also been directly benefiting from the use of cryptocurrency. According to the donating platform The Giving Block, approximately $300 million are given via crypto to nonprofit organisations per year.
Charities see cryptocurrency as a long-term investment that can grow over time, providing more funding for their causes than cash would. An increasing number of charities across the globe are starting to accept and encourage cryptocurrency as payment.
Hope for Paws, a non-profit animal rescue organisation in Los Angeles, now accepts crypto to “provide life-saving surgeries and medical care to animals that otherwise might not receive a second chance”. The organisation accepts donations in cryptocurrency and gives those who donate a tax dedication for the market value of crypto, allowing them to bypass the capital gains tax from selling the crypto and donating. The company says that this can allow customers to save over 30% on their tax return.
Hope for Paws states that they opt for cryptocurrency over cash for its financial prospects. “We believe that cryptocurrencies will have a greater impact overtime and will hold the majority of gifts until at least 2025. Hopefully, this investment will increase in value and allow us to save even more lives,” the company states on its website.
More and more animal-focused charities across the globe are starting to encourage crypto as a means of donation. Another animal charity that encourages donations in crypto is Massachusetts-based shelter Animal Shelter of Sterling, who has set up their website for crypto payment.
Investors who care about animals that use cryptocurrency don’t necessarily need to go directly to charities to give back to a great cause. There are some cryptocurrencies on the market that will directly donate to animal-focused charity organisations simply by investing in the token. God Shiba is an example of this. The Netherlands-based cryptocurrency is set to officially launch in September, and aims to give a percentage of investments to charities.
There are many ways that those who care about animals can give back to a great cause. Thanks to new technology, cryptocurrency can provide an excellent means of donation since it gives contributors a way to avoid as much tax as traditional means of donations. However, by also choosing to simply buy and hold certain cryptocurrencies which send a share of investments straight to charity, philanthropists can be rest assured that their investments are being put to a good cause.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.