How Charities Can Use Cryptocurrency for Good

Posted by Matt Hawkins on June 6, 2018

Bitcoin graphic


Charities have never been more important to our society – or the global community as a whole. With more people living below the poverty line or fleeing the ravages of war and civil unrest since the Second World War (50 worldwide conflicts recorded in 2015), charitable organisations are integral to the welfare and survival of millions.

Charities are also under more financial pressures due to government funding being squeezed and fundraising becoming ever more challenging during a time of austerity.

As such charities like yours are looking at new ways to generate revenue both independently and with the help of their supporters. One such method is cryptocurrency.

Cryptocurrency is an untapped resource which can make a huge difference to charities.

Cryptocurrency is like nothing the world has seen before. In less than a decade crypto has shaken up the financial market by offering organisations and individuals a means to raise funds or trade without involving governments or banks in the same way fiat currencies do.

They are also isolated from the fickle nature of the markets making them – potentially – far more stable. We can’t say definitively as crypto is still traded within its own market, so its value can fluctuate.

However, unlike fiat currencies, cryptocurrencies are largely immune to political instability or fluctuations in the stock markets that can wipe billions off share values.

This makes it an ideal revenue stream as charities like yours can both receive cryptocurrency as a means of donation – which can be traded for fiat currency – or it can be mined.

On a day-to-day basis your organisation’s hardware (desktop and laptop computers) will only use a fraction of the processing power available. Word documents, spreadsheets and browsing the internet are far from intensive activities.

As such, you have the potential to leverage this spare processing power to mine for cryptocurrency.

Under normal circumstances this would be a scary, unpredictable and costly new venture for any charity.

However, what we are proposing is nothing more than a piece of software and some JavaScript on your website that lends your processing power, and that of your supporters, to a widening pool of other charitable organisations to collectively mine a lot of crypto.

That crypto can then be retained or traded as you see fit. All it will cost you is a little extra in electricity but a lot less than a new employee for the fundraising team.

Cryptocurrency is a new and safe way to donate

If you’re mining for crypto then there’s a good chance your supporters are too, which means accepting cryptocurrency – like Bitcoin – as a means to donate or pay is a simple change to your donation page and payment gateway.

Of course, a Bitcoin donation, considering their value, will be rare but remember the following:

  1. Bitcoin, like fiat currencies, has denominations; so, over time the cumulative value of all those donations of millibitcoin, bit and satoshi will add up.

    You may never receive a single crypto donation, but not giving your supporters the option will guarantee it’ll never work for you as a revenue stream.

However, accepting crypto is just one option. Your supporters can help you mine for crypto too!

Much like your own mining efforts, using the Cudo Donate desktop app, your supporters can put their computer to work on your behalf by visiting your website, clicking a button and adding their computer power to your own.

All you need to do is add a small amount of JavaScript to your website and let your supporters do the rest.

The great thing for the individual is that they can support any participating charity this way, anywhere in the world so you may find that you have an upswell of supporters which is no bad thing.

It’s really important to remember that this in no way compromises your network security or puts the computers of your supporters at risk; it’s simply just extra packets of data passing back and forth between your website and their computer.

Cryptocurrency is a charity asset

Cryptocurrencies behave a lot like gold, in that they both have a value and can serve as a tradable commodity that grows in value.

Mining or receiving crypto as a donation is potentially lucrative, and the temptation is to cash them in straight away for their value at that moment in time.

Although there will undoubtedly be occasions when you need cash in the bank, the value of cryptocurrencies tends to (although not always) go up as more and more of the coins are successfully mined.

This means, much like physical assets such as precious metals and gem stones, the cryptocurrency can increase in value over time. This can make stockpiling your crypto the more financially prudent way to go.

You can then release the equity in your crypto when you need it.

Be aware, depending on where you are in the world, there is some confusion as to the legal definition of what cryptocurrency is with regards to taxation.

The United States Government categorises crypto as an asset and so it is subject to capital gains tax as opposed to income tax. Miners and traders in the UK can be expected to pay capital gains tax or corporation tax but whether any profit/gains are chargeable will be reviewed on a case by case basis.

As such, if crypto mining is something you wish to explore for your organisation it’s important to seek professional advice regarding your obligations before you start.

 

Click here to discover more about Cudo Donate and how your charity could benefit from cryptocurrency mining.

Cudo-Donate-Guides-Link

Topics: Cudo Donate, Cudo Ventures, Cudo Mining