|A Public Charity serving other nonprofits around the world|
♦ What are the benefits of donating cryptocurrencies to a nonprofit?
♦ Can I donate anonymously?
♦ Does I must specify the beneficiary?
No! If you don't specify a beneficiary (or you may split the donation if you wish) the full amount of your donation will go to the Charity Pool.
♦ Can I donate to a nonprofit not listed on your website?
Yes! Just fill out the secure donation form and include the name and address of your favorite nonprofit, and we will contact them for approval of the donation.
♦ What types of cryptocurrencies do you accept?
We accept all popular crypto-currencies, many less popular. If you don't see yours on our list, please email us, as we will most probably be able to process your donation. Alternatively, you might need to exchange your cryptocurrency for a more common one, such as Bitcoin for example.
♦ Are there any fees involved?
c2c does not charge fees as such. However, the fact is that in the blockchain world all cryptocurrency transactions, whether as a donation or as a regular transaction, automatically involves certain fees. However, those fees are debited from the token/coins being processed; therefore, there is no out-of-pocket money for the donor nor the beneficiary. In a regular transaction, the following fees normally apply: Exchange fees, Network fees, and Wallet fees. The fees are subject to several factors: type of coin/token, country where the funds are going to, timing, urgency, etc. When using Renor to process a crypto-related donation most fees are eliminated, thus getting a higher net percentage to the nonprofit than it would receive otherwise (through a third party, or doing it directly).
♦ Can you explain the fees people are paying when not using Renor?
As mentioned above, all transactions involving crypto currency involves some fees. The fact that the Renor process is special, does not eliminate all fees, but eliminates some.
Exchange Fees: Whether you want to convert your fiat currencies to crypto or trade your crypto holdings for other cryptos, the safest and easiest way to do this is through a crypto exchange. Exchanges do not provide these services for free and to generate an income, they charge a fee on every trade you make on their exchange. Every exchange charges different transaction fees and it can save you quite some money to research which exchanges have the most favorable fee policies.
Network Fees: What is paid to the miners of a cryptocurrency. All transactions that happen on the blockchain need to be verified by the network. This is done by the miners who are rewarded financially to do so. It is important to understand that all blockchains have their own system for transaction fees.
Wallet Fees: The last kind of fee is a fee for using a wallet (in simple term, something like a bank account, but without the bank). You use wallets to safely store your cryptos, and the wallets’ software development and updates aren’t free. You pay minor fees for using a wallet which go to the company that created it.
We found a recent article that explains i more details these fees: https://hype.codes/cryptocurrency-transaction-fees-beginners
♦ How do Renor gets around all the processing fees?
The simple answer: negotiation power. As we grow as an international nonprofit-based processor, we can negotiate better rates and we can even eliminate some middlemen, and through the use of a revenue share approach we pass the savings on to the nonprofits we serve. Everyone wins!
♦ How much of the donation does the nonprofit get?
While there are certain factors involved in the calculation of fees (see above), the bottom line is that the nonprofit is to receive 100% of the net proceeds. The goal is to limit all fees to between 0.1% and 2% so that the nonprofit receives the highest possible amount of the value of the donated coins/tokens. But that is just the beginning - actually, we expect that nonprofits could receive 150% to 200% of the value. For example, if a donor has US$10,000 worth of a certain coin, the nonprofit could end up receiving US$12k to US$15k in the process. We will be happy to discuss this option directly with the nonprofit (or the donor) as each case is different.
♦ How are the keys protected?
In the event the donor and/or the beneficiary want the funds to be disbursed over time, Renor uses a proprietary protocol to ensure complete protection of the keys associated with a crypto wallet. Read more...
♦ What is the Charity Pool?
Nonprofits and charities registered with Renor automatically become part of our Charity Pool. In the event donors do not name a specific entity to receive their donations, we discuss with them their criteria and we select from the pool the entities meeting those criteria. All rules and conditions apply, just as for a regular donation.
♦ How are the coins/tokens kept safe when the donor wants scheduled disbursements?
A Total Cold Storage system was created with a proprietary protocol protecting stored cryptocurrency in a way digital wallets cannot match. Read more...
♦ What if the transaction is international, ie the donor is from another country?
This is one of the best part of the cryptocurrency environment: there are no geographical barriers. There are no limitations that we know of from the nonprofit's point of view (although we strongly recommend checking with your legal counsel). However, there are certain factors to consider for the donor. The technical side of the transaction itself is not an issue, but the tax laws differ between countries so there might be certain implications the donor should inquire about in order to avoid any surprises.
♦ What's in it for Renor?
A key element of our nonprofit mission is to offer solutions to other nonprofit entities. As a general policy, all services we provide must be financially self-supporting; in the case of facilitating the donations through the exchange of cryptocurrency to conventional cash, we receive a small fee in the process. That reward comes from the normal exchange fees, not from the donor nor the beneficiary.
♦ How long does the whole process take?
Once the initial online documentation is completed, the process may take between one and five days, depending on the type of coins or tokens, and the country(ies) involved.
♦ How secure is the transaction and the process?
We use the latest encryption technology available. Furthermore, the basic structure of the crypto environment is that each transaction is totally secure and easily traceable.
♦ Can Renor refuse to process a donation?
Absolutely! If anything in the donation appears suspicious and/or the legality cannot be confirmed, Renor will not facilitate the donation.
♦ What is the basic tax deduction for crypto donations in the USA?
At the time this question was answered, based our research the tax deduction in the USA will be equal to the fair market value of the donated bitcoin (as determined by a qualified appraisal). The gift to charity will technically be larger because of instead of paying capital gains taxes, the 501(c)(3) charity will receive the full value of the contribution (less minimal fees).
♦ What example can you show about the reality of crypto donations?
There are numerous cases showing the growth of cryptocurrency donations all over the world. An example is the donation from Ripple to school in 2018: $29M - but a quick web search will highlight thousands of other instances. One notable and very well documented case is FidelityCharitable. Their 2018 report shows that in 2017 Fidelity Charitable gave an unprecedented $4.5 billion across more than 1 million donor-recommended grants, to nearly 127,000 nonprofit organizations. See full report >
♦ Taxation questions?
We really cannot provide legal and/or tax-related advice to anyone. We strongly recommend both donors and beneficiaries seek professional advice from qualified professionals. However, from an educational point of view, there is a lot of information available online by legal authorities of pretty much every country on the planet. One article we found interesting: see full article >
♦ How can I avoid cryptocurrency-related scams?
This is an excellent question. As the popularity of cryptocurrency surges, we can anticipate an increase in related scams. We found an excellent article posted by Bitcoin, explaining the common scams one may encounter.
Here are some of the scams discussed:
You have another question? Please email us!