Retailers and merchants aren’t the only establishments incorporating digital currency into their business model. Non-profit organizations and charities are the latest entities to begin utilizing the power of bitcoin and other virtual currencies.
United Way Worldwide has become one of the largest charities in the world today to accept donations made in the peer-to-peer decentralized digital currency bitcoin. The global charity announced in a press release Monday that it would accept contributions through Coinbase and will take donations from the donor’s digital wallet without any transaction fees.
Donations made to the organization will be used for United Way’s Innovation Fund, a fund that is meant to assist in changing the social industry with movements centered on technology, relationships and efficiency to enhance the charity’s international progress.
“United Way Worldwide embraces the opportunity to make it easier for donors to support the causes that matter most to them, and this means innovating to evolve with the donor landscape,” said Brian A. Gallagher, president and CEO of United Way Worldwide, in a statement.
It is quite simple to donate with the Coinbase software: simple browse to the organization’s website and upon arrival they are given a bitcoin address where the funds can be distributed to. Or, Coinbase customers can also complete the transaction from their account and wait 10 minutes for the payment to be completed.
Bitcoin experts believe the latest initiative by United Way will help bring in new donors or even previous contributors who now find it easier to donate with bitcoin and can avoid paying any fees – Coinbase, a San Francisco, California-based bitcoin payment processor, announced this past summer that it would waive all exchange fees for charities registered as 501(c) non-profit organizations.
“United Way Worldwide recognizes Bitcoin as an emerging technology that is impacting charitable giving by reducing the costs associated with receiving online payments,” said Brian Armstrong, co-founder and CEO of Coinbase, in a statement. “We are pleased to partner with United Way Worldwide and help donors around the world contribute to the organization’s impactful initiatives.”
Wikipedia embraces bitcoin
The United Way isn’t the first non-profit entity to incorporate bitcoin.
In July, the Wikimedia Foundation confirmed that it would allow its readers to donate in the virtual currency. Writing in a blog post, Lisa Gruwell, chief revenue officer at the Wikimedia Foundation, explained that it was because of the grassroots support and the latest Internal Revenue Service guidance that prompted the organization to integrate the virtual currency into its fundraising platform.
Wikipedia’s bitcoin addition turned out to be a massive success. In its first week, the online encyclopedia was able to garner more than $140,000 in bitcoin donations – all bitcoin contributions will be immediately converted into U.S. dollars to avoid the fluctuations in the cryptocurrency’s value.
Other non-profits are embracing bitcoin. The BitGive Foundation, a charity that assists environment and public health projects, became the very first bitcoin charity to receive tax-exempt charity status last month.
Who will be the next charity to add bitcoin into their arsenal of fundraising methods?
