However, many fundraising platforms are still hesitant to accept cryptocurrency donations. One of the most common reasons is that this currency appears difficult to comprehend. However, if you know what to do, you can make the transition smooth and painless for your donors.
Philanthropy has evolved rapidly in the twenty-first century. Donation methods such as direct mail campaigns are less popular than they once were, but e-donation (electronic donation) is growing in popularity. Young people who want to help others are now giving in unusual ways.
Young people can give money directly to people in need through sites like GoFundMe. Cryptocurrency is an excellent way to send money directly to people in need. Fundraising platforms must adapt to how people give money today and provide philanthropy that appeals to the next generation of major donors.
According to an eToro survey, 43 percent of Millennials who trade online have less faith in the stock market than in cryptocurrencies. Furthermore, 71% would invest in cryptocurrencies if they were made available by traditional financial institutions. As a result, cryptocurrency donations are an excellent way for the younger generation to make a positive social impact while also encouraging innovation.
When working with marginalized communities, money frequently has to pass through several hands before reaching the desired beneficiaries. For example, assuming someone donated $100,000 to a school program in a remote area of Uganda. The funds would have to be sent to Uganda, converted into Ugandan Shillings, withdrawn from a bank, and delivered to the rural area.
All of the fees associated with this lengthy process would reduce the value of the original donation and divert funds away from the school program. At the same time, this is not necessary with cryptocurrency.
Anne Connelly, a supporter of blockchain's social potential, believes that cryptocurrencies such as Bitcoin can improve the efficiency of humanitarian work. Anne also stated that Bitcoin could be beneficial to people in the global south whose currencies have depreciated to the point where they can no longer be used.
Bitcoin has the potential to empower marginalized communities around the world while also preventing governments from mismanaging their money. In addition, donors can see how their money is spent because every Bitcoin transaction is public and protected by blockchain technology.
The short answer is yes. Large fundraisers are already utilizing cryptocurrency. For example, consider Fidelity Charitable, a public charity under Internal Revenue Code section 501(c)3. Their annual report discusses how donations have changed over the years.
FC began accepting this money in 2015. In their first year, they received approximately $7 million in donations. The majority of these funds arrived in the form of Bitcoin.
In 2017, they received approximately $69 million. The following year, they received more than $30 million in donations, which was less than the previous year but still a substantial sum.
They had made a total of $109 million from cryptocurrency as of the beginning of 2019. As a result, it was the asset that grew the fastest during that time.
With Bitcoin's increase in price in 2019, the future appears bright and promising. Bitcoin is proving those who thought a non-profit cryptocurrency couldn't work wrong. This is the best thing that could happen in terms of asset growth.
Absolutely not. Most non-profit organizations can begin accepting cryptocurrency donations with a few simple changes. However, cryptocurrencies can be difficult to grasp at first. This is particularly important if you intend to hold, trade, and handle your transactions. Other digital currencies, such as Ethereum, Ripple, Tether, and Litecoin, are growing in popularity alongside Bitcoin.
Most non-profits who are not interested in the cryptocurrency have difficulty raising funds independently. However, nonprofits that want to use cryptocurrency, on the other hand, should rejoice. You don't need to be an expert in cryptocurrencies to accept donations. You need to select the payment platform that works best for your company, and you're done. There are various types of cryptocurrencies, so you must decide which ones to accept and how to convert them into cash.
As a nonprofit, you have several options for accepting cryptocurrency donations. For example, you can use a payment processor/gateway, a personal wallet, or a hybrid model combining the first two methods.
As the manager of a fundraising platform, you can control your cryptocurrency directly and manually with a personal wallet. As a result, you must have a thorough understanding of how cryptocurrencies operate and interact with one another. You'll also need to be well-versed in Bitcoin and other cryptocurrencies, including their patterns, trends, and volatility.
It is a significant request for organizations whose primary goal is not to work with cryptocurrencies. You can, however, use web wallets, software wallets, or even physical hardware wallets(devices) if you have one.
These options attempt to provide you with both a personal wallet and a payment processing method. As a result, they will provide you with better tracking options for donations and blockchain transactions than a payment platform. They are also more attractive and functional than wallets. However, they do not have dedicated payment processor management or full wallet independence.
A payment processor is the most common way for nonprofits to raise funds. You will have access to quick and simple donation methods. These platforms can also accept, store, and sell your cryptocurrency. As a result, they make it simple and secure to accept cryptocurrencies and convert them to fiat currency.