Bitcoin & Tsū Microdonations Usher In New Wave Of Charity Giving

For most charities, before computers, donations came in the form of checks, received by snail mail. Yes, faster than the pony express of the previous century, but yet a very slow process. Toward the latter part of the 1900s, with credit cards becoming an accepted form of payment, coupled with the Internet as a distribution channel, the speed and frequency of fundraising increased markedly.

Now into the second decade of the 21st Century, we are witnessing yet another form of donation that is the result of the acceptance of cryptocurrency and peer-to-peer transfers.

Cryptocurrency for Charities

Save The Children, which enabled digital donations in 2013, is now one of the growing number of nonprofits to accept bitcoins – which can be exchanged instantaneously for local currency (for those unfamiliar with how bitcoins work - one of my previous blogs, titled: "Everything You Ever Wanted To Know About Bitcoins But Were Too Broke To Ask!" will provide you with an intro to the world of cryptocurrency.)

Save The Children has been working in Nepal since 1976 and is in a strategic position now to help the thousands of people disenfranchised by the recent Nepalese horrific 7.8 earthquake.

Ettore Rossetti, Director of Social Media and Digital Marketing at Save the Children, said: “We’ve been working in Nepal for nearly 40 years, and before the web and smartphones existed, donations would mostly come in the form of checks mailed in the post. Digital donations like bitcoin enable us to fundraise faster than ever before and thus support victims quicker.”

Having gone mainstream, Bitcoins are a great solution for charities interested in accepting microdonations. Traditional payment processors typically charge a flat rate if a transaction is below a certain volume, taking a big chunk out of the smaller donations. With Bitcoin, charities do not incur any transaction fees and receive 100% of all the donated funds, magnifying each donation – whatever the amount.

Tsu, the social network with a conscience . . .

The same holds true for Tsu, a social network launched last October, and in less than eight months has grown exponentially to almost 4 million users. Founded by entrepreneur Sebastian Sobczak, his vision was not only to shake up the existing social networking business model, but also to create a paradigm shift as to how to use a social network for the better good.

With Tsu, users actually reap the lion’s share of ad revenues, where 90 percent goes to them in form of daily royalty payments. The algorithm that calculates the amount of revenue is intricate. Users are rewarded dependent on the quality of their content and several triggers that weigh their views, shares and the size of one’s individual network [see my previous post for more insight as to how to grow an individual Tsu network: "Is The New Social Network Tsu An MLM?"].

In addition to individual accounts, there are currently 41 charities that have established a presence on Tsu. And, while some users choose to cash out their earnings, once they reach the $100-royalty threshold, a good number have chosen to convert those funds into microdonations for charities instead. Transactions are all internal and don't require a user's credit card.

For many of these users, it's the first time they have ever given to a charity. This is a direct result of the ‘peer-to-peer transfer’ functionality that is built into the system.

Donate with a click of a button

The ease of donating to any or all of these charities is built into the Tsu monetization scheme. After a charity has submitted documentation that substantiates itself as a bonafide fund-raising enterprise (e.g. 501(c)(3)tax-exempt form), the network affixes a DONATION button to its profile page.

With the barrier to entry lowered, Tsu users could now donate any amount of money they like 24/7 (from $0.01 on up to the total they may have in their bank). While in the past, one would have never thought to write a check or process a credit card payment for these small amounts, microdonations have become perfectly acceptable.

Red Nose Day USA & Nepal

Two campaigns, which raised funds exclusively through microdonations on Tsu recently, included Red Nose Day and a Nepal Relief Fund. And both started out as a grassroots effort.

The first is reviewed in detail in my previous post,“Tsu Goes To The Dogs For Red Nose Day USA“ where we were successful in raising over $125 for impoverished children around the world. The second was Sebastian Sobczak & Jess BlevinsSebastian Sobczak & Jess Blevinsspearheaded by user Jess Blevins who with the support of the founder Sebastian Sobczak were able to raise more than $1000, again to help in the efforts to rebuild Nepal.

Both were responsible for not only gaining the attention of the established non-profit charities, but actually prompted both Red Nose Day USA and Shikshya Foundation Nepal to join the Tsu network to continue their fund-raising efforts going forward.

 For those who have not yet checked out the social network, this Tsu link will allow you to take a sneak peak at all of the current Tsu charities without any obligation to join. And please leave a comment below if you have any questions about microdonations.

Comments
Jun 15, 2015
by Anonymous

Tsu is great!! They pay you

Tsu is great!! They pay you to use social media. Join at tsu.co/tsujoinup