In a world that’s increasingly influenced and driven by technology, that trend also applies to the realm of money.
Aside from just another source of revenue, cryptocurrency donations also provide additional benefits or nonprofit organizations.
While some may hesitant to explore cryptocurrencies, it’s become hard to ignore them. Today we’re going to be exploring the reasons your nonprofit should accept cryptocurrency donations.
1. Cryptocurrency Provides Transparency
Something that cryptocurrency provides as an advantage over traditional currencies is transparency. The blockchain that is associated with many popular cryptos keeps a detailed record of every single transaction. This even goes way back to the first transaction that ever existed. Impressive, right?
2. Nonprofits Accepting Cryptocurrency Like Bitcoin Donations Increase Revenue
Perhaps that most important reason your nonprofit should accept cryptocurrency is the opportunity to increase your donor base. Hundreds of millions of US dollars worth of cryptocurrency has been donated to nonprofits over the past few years. Because of the incredible growth in this type of donation, it makes sense to embrace it.
There are several reasons we can point to for the increase in cryptocurrency donations. For one, the rapid growth in ownership of cryptocurrency. Today, more than 21.2 million adults, or about 14% of the U.S population, own cryptocurrency such as Bitcoin or Ethereum. Next, it is very easy to make cryptocurrency donations. People who prefer to use cryptocurrency can donate instantly online to charitable causes. Cryptocurrency also provides tax benefits that typical cash donations do not have. Since the IRS treats cryptocurrency as a property donation, contributors can write off the full donation come tax season, without incurring the capital gains tax.
3. Contributions From Millennials
The growing amount of millennials that are familiar with cryptocurrency provides an opportunity for nonprofits. According to a study, 25% of affluent millennials hold or use cryptocurrency, while an additional 31% are interested in using it. This means that the opportunity is already there, and the trend will continue to grow as more millennials adopt cryptocurrency.
The sheer amount of hype and interest surrounding crypto is astounding. A quick peek into the Google search trends shows that bitcoin is one of the most popular searches. As more people learn about cryptocurrency and start using it, it becomes increasingly important for your nonprofit to be set up to accept cryptocurrency donations.
4. Turn It Into a Marketing Opportunity
By creating a launch announcement regarding your decision to newly accept cryptocurrency, you can turn the decision into a marketing opportunity. There are several ways that your nonprofit can make a launch announcement, including:
- E-Blasts
- Video Announcements
- Social Media Posts
- Advertisements
- Build a Landing Page
- Create a Blog Post
- Create a Flyer
This is just a sample of some ways you can announce that your nonprofit is now accepting cryptocurrency.
Conclusion
The sheer rise in cryptocurrency donations provides a unique opportunity for nonprofits. Not only is it beneficial for the nonprofit implementing the donation method, but also for those who would like to contribute to the organization. Will your nonprofit capitalize on the rapid growth of cryptocurrency charitable donations?