According to Giving Block, in 2022 over 125 million dollars was donated to charities.
Below we show you how to donate to charities using crypto. We also have a list of charities that accept crypto payments at the end of this article.
How to donate to charities using crypto and bitcoin
Donating to charities using cryptocurrencies like Bitcoin can be a straightforward process.
Here are the general steps to donate to charities using crypto:
- Choose a Charity: Select a reputable charity or organization that accepts cryptocurrency donations. Many well-known charities now have options for accepting crypto donations, so you can choose one that aligns with your values and causes.
- Confirm Accepted Cryptocurrencies: Check the charity’s website or contact them directly to verify which cryptocurrencies they accept. Bitcoin is the most commonly accepted cryptocurrency, but some charities may accept other popular ones like Ethereum or Litecoin.
- Set Up a Wallet: If you don’t already have a cryptocurrency wallet, you’ll need to set one up. Choose a wallet that supports the cryptocurrency you intend to donate. You can use a software wallet, a hardware wallet, or an online wallet, depending on your preference for security and convenience.
- Transfer Cryptocurrency: Once you have a wallet, initiate a transfer of the desired amount of cryptocurrency to the charity’s wallet address. This address is usually provided on the charity’s donation page or through other communication channels. Use your wallet’s send or transfer function to complete the transaction. Be sure to double-check the recipient’s wallet address to avoid any errors.
- Confirm Donation: Cryptocurrency transactions require confirmations to be considered complete. Depending on the cryptocurrency and network congestion, this may take some time. You can usually track the progress of the transaction using blockchain explorers specific to the cryptocurrency you’re using.
- Obtain Receipt and Tax Information: After making the donation, it’s important to obtain a receipt or acknowledgment from the charity. This serves as proof of your donation for tax purposes, as cryptocurrency donations may be eligible for tax deductions in some jurisdictions. Consult with a tax professional to understand the specific requirements in your country.
Remember to follow any additional instructions provided by the charity, as some may have specific processes in place for cryptocurrency donations.
It’s worth noting that the specific steps and processes may vary slightly depending on the charity and the cryptocurrency you’re using.
Therefore, it’s always a good idea to refer to the charity’s website or contact them directly for their specific instructions on accepting crypto donations.
Where to find charities that accept crypto as payment
Click here to view our list of charities that accept crypto and bitcoin payments!
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All information in this article is for educational purposes only.