As the traditional methods of donating have become a lot complex and costly because of rising taxes and other reasons in the past couple of years, more and more people are now using cryptocurrencies to help their favorite charities. Here you can read about some of the ways in which using crypto for charity can affect you.
Many leading nonprofits around the globe are now accepting donations in cryptocurrencies from their worldwide supporters. Through cryptocurrency, you can contribute to charity not only through direct donations but also in other indirect ways. For instance, the SOUL token is a new-age charity token that lets you help those in need by simply buying and holding the token. To know how it works, visit http://soultoken.fund.
Here are the 5 ultimate benefits you get when you choose to help others using cryptocurrencies.
1. Experience the pleasure of giving
Different people may have different reasons to help those in need, but almost all of them agree that they do it for the job of giving. Even science has proved it. People who donate to help those in need immediately feel a sense of pleasure. In other words, using your crypto to help others will make you feel better.
2. Help those beneath you
Not everyone is as fortunate in life as we are. There are many people who don’t have access to even basic facilities and things like food, clean water, and a house. Your crypto donations can help these people meet their daily needs and lead healthy lives. When you use cryptocurrencies for charity, you can literally help someone in need, irrespective of their location.
3. Tax benefits of crypto donation
In many locations, including the US, your crypto donations to registered 501(c)(3) nonprofits are exempt from the capital gains tax, i.e. if you donate your crypto profits to a charity, you won’t have to pay capital gains tax on it. Also, you can claim a tax deduction on your charity donations. So, that’s another benefit you get when you do charity with crypto.
4. Encourage others to help
Donating is not just about giving money to others. You can help someone in multiple ways. For instance, you can promote giving by encouraging your family and friends to help those in need. We live in a world where there is always someone who needs our help, not just financially, but also mentally and in other ways. By helping them and by encouraging others to help them, you are putting your crypto holdings to good use.
5. Earn rewards for helping others
A general idea is that when you donate money (or crypto), you effectively reduce your net worth by that amount. But, that need not always be the case. There are other ways to do charity than direct donations. SOUL token, for instance, is a charity cryptocurrency that helps worldwide nonprofits on behalf of their investors. To help those in need, all you have to do is buy and hold SOUL tokens, and the team will make periodic donations to official charities on your behalf. In exchange, investors get to earn recurring rewards on their holdings.
Thanks to cryptocurrencies and blockchain, the charity space is becoming more transparent than ever. With the help of cryptocurrencies like the SOUL token, you can not only help those in need but also get rewarded while doing so.