What are the different ways to accept encryption donations?

There are many different ways to accept encryption donations depending on the needs of your organization. For options 2, 3 and 4 below, your organization will custody from encryption. Therefore, it will be necessary to develop gift acceptance policies and deal with compliance with the tax department systems and accounting practices. Gift acceptance policies are similar to the coded currency, normal gifts for property, but you may have specific policies regarding specific metal coins that you see “risky”. If you stick to the encryption, you should also set policies about it when filtering.

Use an intermediary 501 (c) (3)

To reduce legal burdens, accounting and administrative. Your non -profit organization can accept encryption support through 501 (C) (3), such as the donor donor box (DAF), without keeping the encrypted currency. This allows you to obtain cash grants without accounting requirements or new tax deposit. عادةً ما تكون جميع الجمعيات الخيرية العامة 501 (ج) (3) مؤهلة تلقائيًا مع القليل من الجبهة غير المتوفرة بخلاف تأكيد حالتها. الوسيط مسؤول عن إرسال الإيصالات الضريبية ، وتقديم نماذج مصلحة الضرائب 8282 ، والتحويل إلى النقد ، وبعد اللوائح والممارسات المتطورة حول العملة المشفرة.

While donation of encryption through DAFS, such as charitable fidelity, is only available for account holders, non -profit organizations can work with non -profit donation platforms that do not charge any fees, such as each. The best part of these mediators is that they specialize in dealing with the accounting process and other regulations imposed by local governments.

Use the encryption processing processor

Of course, if you do not want to work with 501 (c) (3), there are other types of encrypted payment service providers such as:

Specialized encryption processor

Use the encryption processor to receive encryption directly. You can pass your own profitability through specialized payment processors for acceptance of donations in your encryption portfolios with receipts automation and conversion to cash. This allows you to stick to the encrypted currency as an investment if you want it (although it is not usually recommended).

Service fees vary according to the provider, but service providers may also help develop campaigns and marketing strategies for the encryption community.

Standard encryption for the Fiat processor

This type of encryption payment portal is already known among e -commerce traders, but you can also implement it in your charitable work. However, it is prominent to know that these processors are not particularly made to enable donations and therefore cannot be suitable for your organization’s needs.

Use an inclusive exit experience by exchanging encryption

For minimal fees, encryption exchanges offer exit experiences that are not included in non -profit organizations in their websites. Like the above options, they have a built -in donation experience with automatic conversion to cash. Although it is usually cheaper than specialized coding processors, the exit experience is not created with a non -profit mode and donations in mind. Therefore, your organization will need to fill out donor support, create a tax receipt, and collect donor information.

Use your encryption wallets

This will allow you to receive donations without any mediator. This is the most technical and “DIY” of all options. Looking at other methods, your organization should only think about this, if you have technician employees who can weight different wallet options and track transactions. You should also create a flow to collect donor information, as transactions are usually anonymous on Blockchain. More importantly, you should create policies on access to the wallet, such as storing accreditation data safely such as the phrase seeds.

We saw

Each charitable organization differs from others, not only on the issue they support but also on the number of people concerned, the years of work they spend and comprehensive recognition in the media. For this reason, each non -profit organization needs to solve the encryption to suit their needs. If you are confident in dealing with Crypto without an intermediary, get it an experiment, but the moment you face the slightest conflict, it is better to integrate a broker. Also, if you receive regular donations from the same work or the individual, you may want to implement the payment channels to reduce the time of treatment and fees. Read more about payment channels.

Legal considerations

Before jumping on the encryption vehicle, it is necessary to ensure that you are aware of all legal regulations, in relation to encrypted donations imposed by the government of the country in which it operates, as well as legislative institutions in the countries where beneficiaries reside. Accounting operations should also be carried out by concerned professionals, who know encrypted currencies.

It is important to know!

The cryptocurrency is not an actual currency!

Here is an important fact that must be known – the cryptocurrency may be legal, but it is not a regular currency, that is, legal giving, at least not in the eyes of the Tax Authority. Digital currencies are in fact ownership. Bitcoin, ethereum, XRP, etc. It is considered a gift in kind, not a gift of money, or monetary equivalent security, such as stocks or bonds.

Examples of organizations that already accept encryption donations

From environmental organizations to charitable societies that support the homeless, an increasing number of non -profit organizations accepts the cryptocurrency donations. Below you can find some of the most prominent examples of organizations that embrace cryptocurrency donations and the impact of these donations on their causes.

1. UNICEF CRYPTOFUND

In 2019, UNICEF The first United Nations organization became receiving, combating, and redistributing the cryptocurrency.

Since then, UNICEF CryptOfund has received a large amount of BTC and ETH, where he has invested in startups in developing and emerging countries. For example, the UnicF CryptoFund 25 ETH invested on the emergency response platform in Kenya, about 20 ETH in AI and the start of Blockchain operating in Argentina, and about 12 ETH in the digital refugee financial services in Rwanda.

Current currencies: Bitcoin and ethereum

2. Forest Forest Foundation

RainForest Foundation Us helps secure land rights for the original peoples. This specific organization strengthens the security of the original lands and learns societies about the use of technology to protect its forests.

Bitcoin, Bitcoin Cash, Eter and Litecoin

3. Water project

The water project, which is 501 C. (3), opens the human capabilities by supporting reliable water projects for societies in sub -Saharan Africa. The project aims to help those who suffer daily due to the lack of clean water and appropriate sanitation.

Bitcoin, Bitcoin Cash, Eter, Litecoin and USDC (via Coinbase Commerce)

Instructions

• Should you immediately sell encryption donations or Hodl?

This depends completely on your investment strategy, the current state of the market and the type of coins, which are accepted. Therefore, it is recommended to contact a financial consultant, which will help you move in your business plan.

• What coins should I accept donations?

Mimi currencies, That was a lot in the spotlight, too. For this reason, it is recommended to request legal or financial advice from a respectable professional. We also have a great guide on how to accept ETH as a payment – you may want to check it too!