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Much of the growing interest in Bitcoin and other digital currencies focused on getting and not giving. But flying under the radar is an exciting new trend to take advantage of cryptocurrency for philanthropy.

Fundraising with Crypto

In recent years, a number of charities have tested Bitcoin donations. These include well-known organizations such as the Red Cross, Save the Children, United Way and the Electronic Frontier Foundation. Cryptocurrency donations to charity are clearly on the rise. Fidelity Charitable, home to the nation's largest counseling fund, received $ 69 million in cryptocurrency donations in 2017, up from $ 7 million received in 2015 and 2016.

Space emerging "crypto-philanthropy". These include crowdfunding platforms such as BitHope, which allows donors to make Bitcoin donations to selected charities for their fundraising campaigns. In addition, some new tools like GiveTrack and Alice can track donor donations to a fact openly, and verify what charities have received and realized, all on a Blockchain

] In addition to cryptocurrency donations and tracking, a number of digital digital pieces have been created to support specific non-profit programs and efforts. Clean Water Coin, for example, was designed to raise funds for the nonprofit charity and bring clean water to families around the world. Pinkcoin, a piece of philanthropy that allows investors to donate to charities and make their investment profitable, is listed on major cryptocurrency exchanges and is well behaved compared to other digital currencies traded in trade. Crypto-Foundations

Another new arrival in cryptocurrency for the space of charity is the "crypto-foundation". An anonymous investor has set up a foundation to give 5,057 Bitcoins. The motto of the charity's donor, the Pineapple Fund, is: "Once you have enough money, the money does not matter." "Up to here, thanks to the anonymous approach of an individual nicknamed" pin "was given to 56 selected charities

Further, we can even see a foundation or an autonomous and decentralized fund, according to which subsidies and financial distributions are made only through the votes of the holders of the foundation. chips. Such a "Distributed Autonomous Foundation" would be governed by an external collective of shareholders having the right to direct the flow of donations and even to produce and finance project ideas through the rule of the majority of tokens

the reputation of charities. According to recent studies, one in three Americans lacks faith in non-profit organizations, many of whom believe that these institutions spend too much of their budget on overhead costs and too little on programs. Lower overhead costs due to improved operational efficiency and disintermediation through Blockchain technologies (eg, Donor Direct Donor) could help restore trust in charitable donations among skeptical donors. This, in turn, could lead to increased philanthropic engagement and increased overall giving.

More charities and even foundations could in the future produce their own cryptocurrences, the sale of which could allow a new model of sustainability. An exchange of charity tokens developed exclusively for the purchase and sale of these, could one day support a new philanthropic, market-oriented approach in which philanthropists and charities earn money. . fundraising through the extraction of tokens.

Despite the unlimited opportunities, there are many challenges to overcome. The most important of these is the fact that digital currency donations and blockchain anchored systems are still new and untested in the world of philanthropy, and awareness and interest are limited among donors individuals, foundations and charities. In the short term, it is unlikely that cryptocurrency and Blockchain platforms will significantly disrupt or displace traditional philanthropy, but they will stimulate innovation and experimentation in the sector

Bitcoin and other digital currencies are becoming more commonplace and acceptable and assuming the crypto market continues to thrive, crypto-philanthropy will indeed develop. There will also be more intelligent contract testing and Blockchain has been able to deliver and track what, if successful, could set a new standard for transparency in philanthropy. Ultimately, as donors and recipients interact more directly, we can see diminished roles for charities, aid agencies, and foundations – in some cases even removing these entities from the community. Philanthropic equation. greater transparency in giving and impact lead to increased trust in charities, millions (if not billions) of dollars could be generated for the social sector.

No matter what way the wind blows, it's a new world I'm waiting to be explored by those who want to give a little back.

Paul Lamb

The opinions and interpretations in this article are those of the author and do not necessarily represent the views of Cointelegraph.