Charitable organizations in the United States and around the world have seen an increasing amount of their donations be cryptocurrency denominated.
Silicon Valley Community Foundation, which unites donors with various charities, has around $4.5 billion USD in digital assets, which is about a third of its 13.5 billion USD investments. Fidelity Charitable, one of the largest US charities in terms of annual donations received, said digital charities was its fastest growing category in 2017. Then there are many other smaller charities that are also accepting cryptocurrencies. Some charities have even encourage individuals to donate their idle computer power to mine cryptocurrencies, such as UNICEF Australia.
However, these charities are at just as much exchange volatility risk as other cryptocurrency investors. Since these charity groups only have to file their financial reports once a year, it is not yet known how much these charity groups suffered loses or unrealized loses during the exchange price declines of 2018.
Competitive advantages of cryptocurrency donations
One advantage mentioned in the article as a reason for the increase in cryptocurrency donations has most likely been the tax breaks that many individuals within the United States can receive for donating directly is cryptocurrency assets rather than cash out, pay capital gains taxes, and then donate in cash. This is what leads many to believe that much of the cryptocurrency donations occurred during the all-time highs cryptocurrency experienced a little less than a year ago. However, unless these charities cashed out immediately, they either suffered realized or unrealized gains. Although, these charities could also be holding onto cryptocurrencies for them to accumulate value in the future or to use for donation purposes directly in third world nations such as Venezuela.
Another strong advantage of donating money in cryptocurrency is that the transactions c...