- 5 Reasons Why Nonprofits Love Cryptocurrency
- Closing Remarks
I first of all would like to thank you for giving me
trust. We have an opportunity to impact the world together. Im are glad to share an amazing article with some additions (my own). By Alex Wilson
and Pat Duffy
, co-founders of The Giving Block
Charity contribute to the lives of other people, while at the same time adding meaning and embodiment of your life
Intoday’s competitive climate, charities don’t have it easy., e.g.: According to the National Center for Charitable Statistics (NCCS)
, more than 1.5 million nonprofit organizations are registered in the U.S. For to survive they must fight to be heard in the battle for people’s hearts ??
When people think of cryptocurrency, they don’t typically think of philanthropy — donating to charity isn’t something often considered. Positive changes came thanks to the ? Crypto for Good ? vector. This change in fundraising has been fruitful! Cryptocurrency has become a force in philanthropy.
New technologies and behaviors have created a myriad of opportunities to do good. It remains only to use them!
Thanks to the increase in the price of Bitcoin and other cryptocurrencies, nonprofits are increasingly turning to cryptocurrency as a new source of revenue. Beyond the revenue potential, some nonprofits are taking things a step further by looking at ways they can become more transparent, provide stability, and provide tax benefits to their donors.
#1 Cryptocurrency Fundraising
Over the last few years, we’ve seen hundreds of millions of dollars in cryptocurrency donated to nonprofits
. Why? Because of the massive tax incentive offered to donors who can give appreciated assets directly, rather than cashing out first. Like stock donations, when you transfer cryptocurrencies to a nonprofit, you pay no capital gains tax and can write off the full amount of the cryptocurrency donation. If someone sells Bitcoin and then donates the cash proceeds, the donation amount is smaller and as a result, so is their tax write off.
To learn more about cryptocurrency fundraising and how your nonprofit can accept cryptocurrency donations, visit The Giving Block
— a start-up of composed of cryptocurrency early adopters and change-makers.
#2 Marketing and Awareness
Accepting cryptocurrency donations is just as much of a marketing opportunity as it is a fundraising tool. Cryptocurrency donations create viral content in ways traditional donations do not. This may come as a surprise, but there are an estimated 50 million cryptocurrency users worldwide and the number is growing. When Robinhood
(the popular stock trading app for millennials) began offering cryptocurrency trading, they onboarded millions of new users and even had a wait list because of the overwhelming demand. Major cryptocurrency exchanges continue to add tens of thousands of users each day.
A recent study
showed that 18% of millennials own Bitcoin. Another survey
from eToro showed that 43% of millennials trust cryptocurrency exchanges more than stock exchanges. Already, the term “bitcoin” is searched more often on Google than Kim Kardashian or Justin Bieber. As the cryptocurrency investing trend grows, so too will grow the cryptocurrency donation trend.
In addition to Bitcoin and Ethereum, nonprofits are using “stablecoins” to minimize volatility. Stablecoins
are a new class of cryptocurrencies which attempt to offer price stability by having them pegged to a cryptocurrency, fiat money
, or to exchange-traded commodities (such as precious metals or industrial metals). This gives users many of the benefits of digital currency without price fluctuations.
The very nature of major public blockchains
, like Bitcoin and Ethereum, is their transparency. Cryptocurrencies are the most transparent way of exchanging value ever created. Even the FBI and DEA
have said they wish more criminals would use cryptocurrencies because they are so much easier to track. Anyone can view the entire Bitcoin or Ethereum blockchain back to the very first Bitcoin or Ethereum transaction
Cryptocurrency donations are becoming increasingly common. Donors who own cryptocurrencies are quickly shifting their support to nonprofits who offer the ability to donate their cryptocurrency directly. As we saw with credit card adoption, with each uptick in the size of the user base, more nonprofits are entertaining the notion of fundraising cryptocurrencies. Like artificial intelligence and the Internet of Things, cryptocurrency has quickly become one of the top innovative technologies that give nonprofits a competitive advantage.
Charities not renowned for their tech-savvy, and barriers to entry for blockchain and cryptocurrency currently high. Charity trustees also tend to have low appetite for risk, and these may be perceived as untested technologies.
One of the most important things i`m want you to recognize in your journey to accept cryptocurrency donations is that you’re not alone.
Charities should aim to own the technology before it owns them!
About The Giving Block
The Giving Block
equips nonprofits to fundraise cryptocurrencies like Bitcoin, providing education, training, and a technical solution. For nonprofits who choose to go the extra mile, they advise on crypto fundraising strategies, and pair nonprofits up with partner crypto organizations, elevating fundraising and awareness outcomes. Ultimately, they help nonprofits build a crypto fundraising program, and a brand in the cryptocurrency industry.
About The Nonprofit Tech for Good
Nonprofit Tech for Good
focuses on providing valuable, easy-to-understand information, news, and resources related to nonprofit technology, online communication, and mobile and social fundraising.
See also related article to “Cryptocurrency and Philanthropy”. Read more about what the future might bring.
And always remember! Charity contribute to the lives of other people, while at the same time adding meaning and embodiment of your life.?????