In today’s day and age, most people are completely unaware that many charities are charged a fixed transaction cost for every deposit into their bank account. Because of this, charities almost never see the entirety of donations given to them to help fight their cause…
In order to raise awareness and provide philanthropists with a way to give every single bit of their donation to causes they care about, the Bitcoin Foundation, BitGive Foundation and Bitcoin Black Friday are teaming up with various charities to give them the money they deserve on Giving Tuesday. By visiting the official website on December 2, 2014, Bitcoin users can see all of the charities and nonprofits that accept Bitcoin this year.
Peter Chasse, president and founder of The Water Project, is one of the charity participants in Giving Tuesday and said the following the announcement:
“Today, as our supporter’s donations make their way to our partners in Africa, these exchanges have become far more costly than the benefits organizations and individuals actually receive from these arbiters of trade.”
He then outlined issues The Water Project faces with the current banking system.
“From credit card donation processing fees, to domestic banking fees, to the costly overseas transfer of funds with its concomitant dilution through currency trading arbitrage and trade commissions, and finally to the local bank fees in Kenya or Rwanda, a lot of folks take significant “cuts” along the way. Most of these fees are obscured and non-negotiable. We’re told the process is difficult, cumbersome and expensive, but since we can’t see it we remain unconvinced.”
With Bitcoin and other digital currencies, microtransactions allow these charities to take their donations in full without banks grasping at them later.
What do you think of microtransactions for giving to worthy charities? Comment below!
Images from Wikimedia Commons and The Water Project.
Last modified: January 25, 2020 10:06 PM UTC