Gracetoken ico presale starts tomorrow. Information is available at https://www.gracetoken.org. Grace aims to create an ecosystem for donors, charities and advocates to come together and all win from the affiliation with Grace. The most interesting part of this experiment is the opportunity for advocates to volunteer their time for causes or get paid in Grace tokens for helping arrange a transaction between the charity, donor and beneficiary.
Many articles and books have been written about the inefficiency of charity advocates currently. Charities hire low cost low skill employees to advocate for one charity with the employee having limited networks of donors and skill set to acquire new donors. The outcome is predictable with high employee turnover and poor productivity in these employment roles. Outsourcing by charities are possibly less efficient with the award going to the firm that can "sell" the charity on their awareness campaigns but not necessarily create new donors resulting in high turnover and low productivity in these roles.
Donors donate to charities that are successful in getting their message across and "selling" the donor but not necessarily using the donated funds efficiently or effectively for the beneficiary. Worthy beneficiaries don't necessarily have the time or resources to advocate for their need.
Grace https://www.gracetoken.org intends to set up an ecosystem much like crowdfunding but where the incentives are in place to put the incentivized advocates and the crowd front and center of the donation process. A virtual currency adds incentive and transparency to all transactions along with a dedicated team of developers to continually test and improve the Grace system. No startup is guaranteed success.
Grace seems to be a startup with a chance for success. Record profits in the virtual coin space should have investors looking for charity for tax deduction in the US. The US tax system has a unique tax deduction for appreciated property. The fair market value of the virtual currency held more than 1 year is the donation and the gain is ignored. This allows the 22.9% capital gains tax to be avoided plus a 39.6% donation deduction benefit to be created. This donation to a worthy cause can have in excess of 60% tax benefit. All US tax benefits come with a cost. An independent qualified appraisal for donations in excess of $5,000 US must be done along with other paperwork filed with the IRS.
Other digital coins have tried charitable experiments with various degrees of success or failure. The Dogecoin Foundation is a non-profit organization created by the Dogecoin community, for the Dogecoin community, to facilitate the use of Dogecoin through goodwill, promotional and charitable endeavors. So whether there is a project that you would like to see happen or you just want to spread the love using the magic of doge, we invite you to work with us. Dogecoin users are know for their generosity to charities and tipping to other Dogecoin users.
According to the recently released Fidelity Charitable 2017 Giving Report, donations made in bitcoin to Fidelity Charitable, a $16 billion donor-advised philanthropic fund, grew to about $9 million in the first half of 2017. That's about $2 million more than what bitcoin donors contributed in all of 2016. The report paints a picture of the nearly 150,000 people who donate to the fund in order to illustrate trends in charitable giving, according to Fidelity Charitable's site. Donors to the fund have been able to give in bitcoin since 2015, according to a media representative at Fidelity, after joint collaborations between Fidelity Charitable and Fidelity Labs, Fidelity's emerging technology incubator. Fidelity's CEO Abigail Johnson is a bitcoin enthusiast. In May, The Wall Street Journal reported that Johnson voiced her support of the cryptocurrency in a speech at a conference hosted by CoinDesk, a cryptocurrency news site. Most regulators and investors view cryptocurrencies more as assets than actual currencies. Their values are too volatile and too hard to actually use for payment for most to consider them currencies. Our conversations with some merchants indicate that, while cryptocurrencies might actually be attractive for them to operate their businesses, they find that the cryptocurrencies are far too volatile to be used.
The digital currency marketplace is filled with marketing advocates now earning rewards with new ICOs and with new digital currency like Steem coin and Reddcoin. Grace will allow these advocates and advocates for specific causes to pool resources to efficiently raise funds for beneficiaries and charities.
For those new to the digital currency, Steem users can obtain steem by posting content on social media platform named Steemit. When users publish popular content, as measured by upvotes, they receive steem tokens. By developing such a platform, Steemit’s creators have stated that they want to allow users to receive a reward for the content they create. The concept itself is interesting, it is a Reddit and Quora mashup with a strong monetary incentive to produce good quality content. Whether steem succeeds as a digital currency will be more a reflection of Steemit’s success as a platform as opposed to the economics of the coin itself. This is a good example of a digital currency whose value will be closely affiliated to its utilitarian value as a social networking and sharing platform.
Reddcoin will be dedicated to one thing: tipping on social networks as a way to bring cryptocurrency to the general public.Social networks are now part of our life. They give to everyone on this planet a fair chance at showing to the world how awesome they are. Getting an upvote’s or like’s for their well-received comment is fun, but unfortunately, it has no real value. Maybe there is something better? Cryptocurrency is complicated. Let’s face it, the average human being has no idea how cryptocurrency work. They would like to get involved, but usually have no idea where to start.
Reddcoin will fill those voids by integrating a seamless cryptocurrency tipping system with all major social networks to make the process of exchanging coins simple, fun and rewarding both for the giver and the receiver. Everyone will be a winner. Social networks are always looking for new ways to have their users interact with each other in order to generate more advertising revenue.
Beneficiary charities receive grace tokens and are verified. It is important to know the recipient address for donations on the Grace network is indeed the same entity it claims to be outside the network. Grace implements a multi-level verification process that assigns labels to the beneficiary depending on its status in the process. This gives donors more confidence when making a contribution. Each beneficiary on the network is asked to submit information such as website, email address, physical address, and any relevant documents for verification. Such information will be made public for all users to see. This means anyone on the network can perform audits on any beneficiary. If anything abnormal is noticed, a participant in the network can flag the suspicious beneficiary. Verification statuses can be revoked at any point, even after completing all levels of the process, if enough participants flag the entity as illegitimate. Grace www.gracetoken.org intends to set up an ecosystem much like crowdfunding but where the incentives are in place to put the incentivized advocates and the crowd front and center of the donation process.
Efficient middlemen can serve an invaluable role in encouraging charitable activity. A virtual coin like grace token being the reward can make the entire ecosystem of charitable giving even more efficient and effective. Charitable foundations have for decades fulfilled this role as effective and efficient middlemen in the charitable giving field. The advent of the internet, social media and digital currency give new models of charitable middlemen a chance to increase charitable giving in new ways.
As a charitable giving middlemen during my career there are many necessary tasks that need to occur to facilitate charitable gifts. My role as an accountant has been in helping charities with tax compliance and advising donors about tax incentives and compliance required by US tax law. The reward for efficient and effective assistance is a donor that understands the good they have done with their donation and charities that carry out their mission. Beneficiaries who see their needs met are the real winners in an ecosystem that promotes responsible charitable giving.