Cryptocurrencies such as Bitcoin and Ethereum have been a hot topic in recent years. There are many factors behind the growing popularity and appeal of this new form of currency amongst investors and philanthropists. People see cryptocurrency (or crypto) as a way to engage in trade without the oversight of governments, which means that its value can remain stable even during times of political turmoil. In addition, there are few fees associated with using crypto. As a virtual currency, it doesn’t require moderation through a central bank. The potential growth of crypto is huge, with an estimated 101 million users so far.
Donating via crypto has also become increasingly popular. According to donating platform The Giving Block, around $300 million dollars are given via crypto to nonprofit organizations per year.
ACE was among the first sixteen animal charities to partner with The Giving Block to provide an option for donors to give via crypto in support of its mission. We have accepted Bitcoin, Ethereum, Litecoin, and many others since 2019. In this post, we outline three key benefits of using crypto to support your favorite animal charities.
Optimizing Tax Efficiency
Crypto donations are not subject to capital gains tax and are tax-deductible. This is because crypto is classified as property by the IRS. Bitcoin and other crypto donations are therefore one of the most tax-efficient ways to support animals: When you donate to ACE with crypto, ACE receives the full value of your charitable contribution. You can support any of our current giving options this way, including our Recommended Charity Fund, Movement Grants, or ACE’s own work to produce informative research and conduct comprehensive charity evaluations.
To learn more about how efficient your charitable contribution can be, check out The Giving Block’s post on how donating Bitcoin and other crypto affects your tax liability.
Cryptocurrency uses blockchain technology, which means that donations can be traced at any time. They can also be made anonymously so that charities don’t receive the donor’s contact information, if desired. The blockchain serves as a public ledger of transactions which allows all changes to be tracked; once recorded, entries on the blockchain cannot be altered. This provides protection from any kind of data manipulation or fraud, and donors are able to follow their contributions through a series of transactions, ensuring complete transparency. We are excited about how the use of crypto can foster trust between donors and charities.
ACE considers transparency to be an important guiding principle. We are pleased to have been awarded the platinum seal of transparency by GuideStar, which is the highest level available.
Creating a Virtuous Cycle
Payment via crypto is now available on platforms such as PayPal and CashApp. As more companies adopt crypto for trade, we will likely see a corresponding increase in its use for philanthropic purposes. Besides seeing this new technology as an efficient and transparent method of supporting animal charities, we are encouraged by its use as an inclusive and equitable giving option. By providing this alternative method for people to participate in their chosen causes, we hope to promote economic inclusion while also offering a fundraising channel that may be new to our core supporters. We also encourage the adoption of crypto among our recommended charities.
If you would like to use crypto to reduce animal suffering by supporting effective animal advocacy charities, check out our cryptocurrency donation options. You can also contact Heather Herrell, our Director of Philanthropy, if you have any questions. Thank you for helping ACE help animals!