Now that Bitcoin, a type of global decentralized currency, has been adopted by millions of people around the world, an increasing number of organizations are starting to accept it. This includes various charities, including Save the Children.
According to Ettore Rossetti, the charity wanted to remain relevant in today’s world and to embrace the future, which is why they decided to accept donations in Bitcoin. The donated Bitcoins can then be exchanged for a variety of national currencies, such as euros and U.S. Dollars.
By accepting Bitcoin, Save the Children has joined many other charitable groups around the world that take donations in this digital currency. The American Red Cross, Greenpeace, United Way Worldwide and the Wikimedia Foundation are just a few examples which allow people to make their donations by using Bitcoin as a method of payment.
Many in the payments industry have also reported that there is growing interest among charitable groups for Bitcoin. BitPay, a company that offers solutions that make it easy for businesses and charitable organizations to accept Bitcoin as payments and convert the digital currency to national currencies, many older charities that want to embrace the future and encourage younger individuals to donate are expressing an interest in Bitcoin.
Just like many other innovative technological products, Bitcoin tends to attract younger individuals. Data from a 2014 survey conducted by the University of Illinois at Urbana-Champaign has determined that the average user of Bitcoin is 33 years old.
Besides appealing to the younger crowd, there are several other advantages for charities which decide to accept Bitcoin. As the digital currency is fully decentralized, there are no transaction fees to receive payments with it. This makes it an interesting choice for charities who wish to accept small donations, such as amounts under $1, as charities can save significant amounts on the transaction fees typically charged by credit card payment processors.
Furthermore, as the IRS has issued a ruling that virtual currencies such as Bitcoin follow the same tax rules as properties, donors may be eligible to deduct their donations from their income tax, just as if they would have donated any other type of property.
The charities who can benefit the most from using Bitcoin are those whose donor base tends to be younger or tech-savvy individuals, who are more likely to be using the digital currency.