By now, you have likely heard of Bitcoin, Dogecoin, Ethereum, or one of the dozens of other cryptocurrencies out there. But did you know that cryptocurrency fundraising is the fastest growing donation method today? With a more than $1 trillion market valuation (as of June 2022), it’s no surprise that crypto donations are on the rise, and it may be time to set up your nonprofit organization to accept them.
Cryptocurrencies are digital assets that can be converted into cash and donated to nonprofit organizations in a similar fashion to stocks and securities. However, in a recent study, Fidelity Charitable reported that half of crypto donors found it difficult to find nonprofits that accept cryptocurrency donations (National Council of Nonprofits). For your organization, that could effectively mean leaving money on the table. With these digital assets on the rise, your organization can easily accept cryptocurrency donations in just a few simple steps thanks to new digital platforms that remove complicated tax, appraisal, legal, and regulatory barriers.
The simplest way to prepare your organization to accept cryptocurrency is through a no-fee intermediary like Every.org, which converts digital donations into cash for nonprofits. This streamlines the process and prevents your organization from having to take on any accounting or operational tasks related to converting the cryptocurrency into dollars. It’s really as simple as creating a profile on the platform and then sharing your custom link on your website, in fundraising appeals, social media posts, or wherever you’re doing your fundraising.
There are other ways to accept cryptocurrency donations that require more advanced steps, including using a crypto donation processor, using an embedded checkout through a crypto exchange, or using your own crypto wallet to receive donations without an intermediary. Platforms like The Giving Block, Engiven, BitPay, and Fidelity Charitable offer nonprofits these options, and also provide additional flexibility in how organizations realize the gift value (i.e. converting immediately into cash or holding onto it as an investment).
Regardless of which approach you take, as with any type of donation, be sure to update your gift acceptance policies to ensure your organization is clear about which types of cryptocurrency you will accept (if not all), how gifts will be reviewed and approved within your organization, how and when the crypto donation will be liquidated, what information you will request from donors, and more.
So, when a cryptocurrency investor reaches out to your organization and says they want to donate in Bitcoin, will you be prepared to receive it? Make sure the answer is yes! Not only does it provide additional donation options for your donors, it opens up an entirely new revenue source and taps into a growing demographic and potential donor base.
Need Help? Call My Philanthropy Team!
Cryptocurrency philanthropy represents the future of charitable giving. If you need assistance setting up your organization to receive cryptocurrency donations in time for your year-end giving campaign, reach out to MPT today! You don’t want to miss out on this fast-growing fundraising strategy and the opportunity to have more impact on the communities you serve.