Why should nonprofits accept cryptocurrency donations?
Less than 1% of nonprofits accept cryptocurrency donations. Fifteen years ago nonprofits were skeptical about credit card donations. Now almost all accept them. Cryptocurrency will follow a similar trend except in this scenario there are additional benefits.
- Do you want your organization to be seen as a leader in your industry?
This is a way for your organization to distinguish itself. The early adopters will be remembered and rewarded. Keep in mind, people are getting rich from this technology. Would they rather support a nonprofit that accepts crypto or one that doesn’t?
2. Do you want to give donors a convenient and tax beneficial way of giving?
The IRS classifies cryptocurrency as property, meaning donations are treated the same as real estate or stocks; however, they are able to be converted immediately on the open market. This means the donor does not have to pay capital gains tax and can deduct the full amount. The Giving Block’s solutions also converts all donations into US dollars within 10 seconds. All you have to do is sign in a click a button to transfer the funds to your bank account.
3. Do you want to attract and engage with younger donors?
According to Fortune, the majority of crypto users are between the ages of 18 and 34. A recent study also found that millennials are some of the most informed donors, meaning they will donate to causes that are aligned to their beliefs, which in some cases can be emerging technologies. This is your opportunity to build a lifelong relationship with a donor.
4. Do you want a piece of a market currently worth hundreds of billions of dollars?
In 2017 and 2018, there were $100’s of millions worth of cryptocurrency donated to charity. You can’t get a piece of this growing pie unless you’re equipped to accept cryptocurrency donations. When so few nonprofits accept crypto, it isn’t hard to become a leader in the space.
Accepting cryptocurrency donations isn’t going to suddenly double your annual budget. You might get no donations for a month or you might get a significant amount. The key is engaging the community and building relationships that will last a lifetime and become more important as cryptocurrency adoption increases. What we do know is this: accepting cryptocurrency donations can make your organization stand out from the crowd and generate an immense amount of buzz on the internet and at events.
Reach out to us at info@thegivingblock.com if your organization is interested in receiving our free introductory education about how your organization can benefit from this emerging technology.
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