In recent years, the rise of cryptocurrencies has transformed the way we think about money and financial transactions. Beyond their investment potential, cryptocurrencies offer a unique way to support World Animal Protection. Let’s explore what cryptocurrency is and the reasons why donating cryptocurrency can be a noteworthy way to create a world where animals are cherished, protected, and free from suffering.
Cryptocurrency 101
Cryptocurrency refers to digital or virtual currencies that utilize cryptography for security. It is a form of decentralized digital money that operates independently of a central bank or government. Cryptocurrencies leverage blockchain technology, a distributed ledger system, to record and verify transactions securely. Cryptocurrencies are typically based on a decentralized network of computers called nodes that maintain and validate the transaction history. Transactions are verified and added to the blockchain through a process known as mining, where powerful computers compete to solve complex mathematical problems.
Streamlined Process
World Animal Protection has partnered with FreeWill to provide our free, secure Crypto Donation Tool. This tool automatically notifies us of your gift intention and allows you to donate your cryptocurrency, name a gift intention, and request a tax receipt—all in a few minutes. This streamlined process mitigates any administrative duties, allowing you to focus on the impact of your gift.
Global Accessibility and Inclusivity
One of the most significant advantages of cryptocurrencies is their global accessibility. Donating traditional currency across borders can be complex, costly, and time-consuming. Cryptocurrencies, on the other hand, enable quick and seamless transactions worldwide.
Tax Benefits and Financial Planning
Depending on your jurisdiction, donating cryptocurrency to registered charitable organizations may provide tax advantages. In the United States, cryptocurrency donations are eligible for tax deductions, allowing you to maximize the impact of your philanthropic efforts while potentially reducing your tax liability. The Internal Revenue Service (IRS) treats cryptocurrency donations similarly to donations of property or stocks. The IRS considers the fair market value of the donated cryptocurrency at the time of the donation for tax purposes and if you’ve held the cryptocurrency for more than one year, you may qualify for a higher tax deduction based on the appreciated value.
Transparency and Accountability
Cryptocurrencies operate on public blockchains, which record and verify transactions transparently. This transparency ensures accountability for charitable organizations, as donors can trace their contributions and verify their allocation. By donating cryptocurrency, you can have confidence that your funds are being utilized effectively and that the organizations are operating with transparency.
As cryptocurrencies continue to reshape our world, contributing to World Animal Protection through digital assets enables you to be at the forefront of positive change for animals around the world.
Before donating cryptocurrency, please consult with a qualified financial advisor or tax professional for personalized advice based on your individual circumstances.
