Philanthropy, charities, and non-profits have been key beneficiaries of the crypto payments revolution. A glaring instance of crypto donations benefitted the Ukraine conflict zone. On several discrete occasions, crypto donations came in handy, meting out the crises when the COVID-19 pandemic peaked.
Aside from raising funds to combat crises, crypto is now also used as donations in raising funds for charities and non-profit events. In 2021, crypto users earned the title of the most charitable investors on the planet. To verify this fact you’d simply need to login into your Twitter account and search ‘crypto donations’. Even without using any hashtags, you’ll have pulled up a long list of crypto users announcing their donations with proof. Yes, that matters. In the same list, you’ll also come across multiple non-profits expressing their gratitude to the donors.
What’s wonderful about the crypto community is that they recognize these donors, often giving them ‘shout-outs’ on their Twitter spaces, and live streams. These people implicitly contribute to the mainstream adoption of crypto.
These out-in-the-open crypto donors offer only a slice of the actual operations. The real tasks are majorly accomplished by the private donors who choose to stay anonymous.
Also Read: Ukraine Government opens “Aid for Ukraine” Website for Crypto Donations
Somebody who has worked closely with the non-profits would testify, that these organizations retain donor data. This is because approaching and obtaining newer donors is a more expensive alternative. Therefore, they prefer to return to their previous donors the next time they look to raise funds. For a non-profit looking to efficiently raise funds this information can be of great help in minimizing expenses that are a part of the process.
However, a donor may harbor a different perspective. For them, leaving behind their identity trail to be tracked down and persuaded to make more donations is often not the case. On the flipside, anonymity empowers donors to donate to whichever cause is close to their hearts without the fear of embarrassment or persecution (the latter may be hard to avoid, in some cases, though).
Donor privacy can be achieved through donations in cryptocurrency. There are organizations that facilitate such donations helping charities and non-profits raise funds in cryptocurrency. A number of donors even leave anonymous notes thanking the organization for keeping the anonymous donation option open.
While there may be a list of reasons for non-profits to mandate donor information, the right to donor privacy also has its foundation. Commonly non-profits demand donor information to also ensure they’re not accepting donations from international spying agencies or terrorist organizations. However, their chances of donating to non-profits are rather bleak. Even so, crypto offers pseudo-anonymity wherein the donor’s information is hidden from the public but is available for scrutiny by government agencies for investigative purposes.
So here are cryptocurrencies resolving donors’ dilemmas in donating to a cause they closely identify with instead of shying away from the fear or embarrassment of the information going public. On the other hand, cryptocurrency also paves way for donors who wish to brandish their contribution and enjoy being loud about it.