Interesting project, what are the advantages of creating charity events on blockchain?
Well, I can think of several benefits:
- Lower administrative costs for charities. Especially with credit card transactions, often charities have to pay a significant amount of the donations they receive to payment processors. With on-chain donation projects, transaction fees are lower (for mangocoin, current tx fee is 1 MNG, which is very little) and they are paid by the sender instead of the receiver.
- Blockchain can provide greater transparency. Many charities have lost respect because of scandals involving huge payments to CEOs or other employees, or lavish spending on things not related to charity. With projects on a blockchain, transactions could be verified independently to make sure charities spend money like they say they are.
- Improved access for privacy conscious. To donate to charity currently, you very likely need to go through channels where your privacy is not protected, like banks or credit cards. If you don't want others knowing what donate to (for whatever reason), a crypto donation may better protect your privacy.
- Possibly better tax exemption. Say you had holdings in crypto and wanted to donate. You'd first have to sell your crypto, cash it out, and then donate. That will likely involve paying a capital gains tax on your crypto, which reduces the actual amount given to charity and thus reduces the tax exemption you gain (for those who need it) while also increasing your taxes. If you could just send the crypto directly, the donation amount would be the full value.
Of course, the crypto has to support these functions. If these are things that matter to you, then check out Mangocoin and support the project, and hopefully the devs can implement these features. Crypto has a bad name outside of the community, and I think projects like this will help introduce regular people to the possibility of cryptocurrencies.
