Why should your charity accept Bitcoin donations?
Many nonprofit executives are still not sure that this method of payment will improve the fundraising strategy of their charity. Price volatility, bad media reputation and complexity of the topic are the main issues that need to be faced.
Bitcoin has died 378 times according to the press, but as we can see, it’s here and definitely alive. Price volatility characterizes this ecosystem and crypto donors are aware of it, while there are very simple ways to accept Bitcoin donations (read our article “How to accept Bitcoin donations“).
Cryptocurrencies are contributing to fostering charitable activities and some nonprofits benefited a lot from the use of this payment method.
- Target a new segment of possible donors, constituted by a growing amount of people that own Bitcoin.
There are no precise estimates about the number of people involved in this world (that buy, sell or hold cryptos) but a recent survey reports that 9% of the population owns Bitcoin, including 18% of those aged 18-34 and 12% of those aged 35-44. Near half of those aged 18-34 agree that most people will be using Bitcoin in the next 10 years and 59% of them agree that Bitcoin is a positive innovation in financial technology (source: Blockchain Capital Blog).
- Add a new method of payment and maximise the volume of donations.
According to the Global NGO Technology Report, today cryptocurrency donations represent 1-5% of the used payment method for charitable donations with a +100% growth in some countries.
In addition, as reported by CryptoGivingTuesday, a research shows that more than 13,300 BTC and the equivalent amount of $200+ million in cryptocurrency have been donated to charities that have implemented this method of payment.
- Boost your brand and get a visibility return, as a forefront charity in innovative technologies.
There are few hundreds of charities that accept crypto. Some of them are very active in the crypto community and are well known (e.g. BitGive). This initiative could also bring the attention of media, crypto companies and individuals, that now are interested in your cause. You can improve your reputation inside and outside this ecosystem, targeting both the youngest generations and middle-age donors.
- Improve the knowledge of your employees, donors and stakeholders about this movement.
Inform people around you that there is a new disruptive technology in the game, and it is called Bitcoin. In current world it’s necessary to have a certain level of knowledge about everything, in order to be able to analyze the information from many resources. Many people don’t do deeper research about Bitcoin and they trust unreliable sources. More knowledge = better decisions
- Provide a charitable solution to bitcoin holders that have to pay capital gains taxes.
In U.S., if you donate crypto to charities you will not recognize income, gain, or loss from the donation, so your tax deduction and your charitable gift may instantly increase over 20%. Fidelity Charitable shows an example of how it works:
- Be different: today only few charities accept Bitcoin and you could get the attention of crypto philanthropists.
When a donor has to choose which will be the beneficiary, the list is short and this increases the probability to receive some funds. Pineapple Fund donated to 60 charities. At the time, be in that list was a huge visibility advantage and even if 10,000 charities were ready to accept its donations, only few were picked up from the application form (the first batch of donations was to charities that already had this method of payment).
If you need help in accepting Bitcoin and crypto donations, contact us and join the crypto movement!