Our observations:
Charities around the world operate under strict regulation preventing them from going beyond the regulatory framework. These includes defining their objectives and operating within those parameters, not being able to engage in business activities to fund their operations and limitation imposed on accepting overseas funds.
In addition to these, charities operate under intense competition from other charities for funds. Their sources of funds are strictly monitored by the authorities.
Charities need to be registered to operate in any jurisdiction to receive the non-profit status. Having registered not all charities qualify to receive tax-deductible contributions from its donors. Additional formalities, some of which are prohibitive, are imposed to qualify for the status.
There are also restrictions imposed on donors. In most jurisdictions, remittances to or receipts from overseas charities are strictly monitored with restriction imposed on the amount to be remitted or receipts. Unrestricted free remittance is usually limited to less than $10,000 per remittance. Any remittance or receipts in excess are monitored and if need be investigated.
Although cryptocurrencies would alleviate most of the above restrictions, charities would still be mindful of receiving large amounts of contributions from unknown overseas sources as that may raise suspicion and trigger unwanted investigation into its affairs by the authorities.
Original Article
