The world of donations is changing for the better
There are potential benefits for nonprofit organizations accepting cryptocurrency. With the use of bitcoin and the underlying blockchain technology, if nonprofits accept cryptocurrency like bitcoin donations, they can expand their sources of funding. While some hurdles still exist, cryptocurrency allows nonprofits to overcome traditional hurdles. Let’s dig into some of the biggest benefits cryptocurrency brings, and stick around because the last one is a game-changer.
Ability to Make Bitcoin Donations From Anywhere
Cryptocurrency allows for international donations without the headache that comes with traditional currencies. Not only is the traditional process lengthy, but it is also risky. If you’re donating to a nonprofit that exists within a more corrupt country, you risk government officials getting their hands on it. That’s not the case with cryptocurrency, as you can donate directly to the organization and it’s less regulated.
Easier For Everyone to Donate
Donating traditional currencies comes with a decent amount of hoops to jump through. For people around the world who cannot afford to open a bank account or make transfer payments, donating can be challenging. With the rise of cryptocurrency, any individual has the opportunity to donate to a nonprofit they’d like to support. This helps nonprofits too, because they’re able to accept Bitcoin donations from people who couldn’t give it to them before.
Faster Money Transfers
Traditional currency often comes with lengthy transfer times and unnecessary fees. Luckily, for nonprofits using blockchain technology, transfers become available instantly. This is especially important for nonprofits, where emergency needs can pop up at any time. Traditional transfers can take anywhere from one to three days, and sometimes even longer.
Cut Out Middlemen and Financial Institutions
Large nonprofit organizations are often tied to many smaller nonprofit organizations, creating an inflated organization structure. While it’s great that nonprofits work together, this can also tack on additional financial expenses. With cryptocurrency, nonprofits in the same organization structure can send money directly to other nonprofits, without the headache of wait times and extra costs.
Additionally, if a financial intermediary finds a nonprofit controversial, they can block donations to that nonprofit. Don’t think that your organization is immune, because this practice goes on all around the world, for political reasons among others. However, with cryptocurrency, that’s a thing of the past.
Conclusion
Despite the many benefits of cryptocurrency for nonprofit organizations, there are still some areas that need improvement too. The value of cryptocurrency is volatile at times, meaning that the value of some donations will fluctuate. The tax implications of cryptocurrency are also still unclear. There are some other areas of risk such as loss of theft, though those exist with traditional currencies too. As with any upcoming technology, there are always going to be benefits and drawbacks. Will your nonprofit become an early adopter in the world of cryptocurrency donations?