Several people are there who have devoted their lives collecting cryptos in the hope that someday the numbers will go up, whereas other people are there who are interested in spreading a worthy cause by the use of crypto i.e., making crypto donations. So, now the good news is that there are a plethora of Non- Governmental Organizations (NGOs) including charities who have now started to accept cryptocurrency from the novice rich and give it to the people who are in need, thereby creating the “WAGMI” (we are going to make it) mantra central in the world of Crypto. Several such organizations have started to come out of their cocoon and they have in response to the crisis in Ukraine, there have been millions of dollars in cryptocurrency that has been donated in the country.

Buying Cryptocurrency – 

Besides that, Ukraine has started Crypto Wallets to receive donations and use them for the necessary supplies. But many people have this question on their minds, as to how can they donate the cryptocurrency and which non-governmental organization will accept their cryptocurrency. Before you can think of donating a cryptocurrency, you need to own the cryptocurrency. On a centralized exchange like that of Coinbase (COIN) or Binance or a decentralized exchange like that of UNISWAP, you can buy the cryptocurrency. From the decentralized finance (Defi) protocol you can buy the cryptocurrency. For instance, give out the crypto you earn on a DC lending platform i.e. decentralized like Aave, and give out the interest that you get.

Transferring Funds – 

One of the things that you should know about crypto donations is that it is a circumstance of transferring capital from your wallet to the receiver who is the beneficiary in this case. And, it will be mostly an NGO. From several exchanges, you can transfer funds through a Web 3 wallet like that of Meta Mask. Many cryptocurrencies are there are infamous and known for their unpredictability, so if you want to transfer the capital which you are having today it is better that you donate in cash.

Benefits in CG Tax – 

But there are some charitable organizations that welcome the unpredictability in the crypto thinking of it as a way to increase the value of the crypto donations over time. For instance, a non-profit org. called charity water is saving/holding cryptocurrency donations which were done in 2021 for at least 2025 in a charitable BTC trust i.e., Bitcoin trusts. In a similar manner, UNICEF’s funds for cryptocurrency operates. If you are giving away your money to a reputed charity then it can happen that direct cryptocurrency donation can help you avert capital gains tax and you will be entitled to a tax deduction.