According to the Pew Research Center, 18% of American adults own some type of cryptocurrency.
Yet, only 2% of U.S. charities accept cryptocurrency donations. Fortunately, there are some great organizations that are accepting crypto-donations and here are reasons why it’s beneficial for nonprofits!
Charities Accepting Crypto-Donations
Of course the below is a very, very non-extensive list, in no particular order:
- The Water Project
- Fidelity Charitable
- Humanity Road
- Songs Of Love
- Chicago Wish Foundation
- Run 2 Rescue
Receiving Cryptocurrency Donations is Easy for Nonprofits
One of the top reasons why nonprofits should accept cryptocurrency donations is that it’s easy.
In fact, there are many options for accepting crypto-donations. Below are just a few options, and we’re here to help your nonprofit get started with cryptocurrency.
- Endaoment.org: “We’re a tax-exempt Community Foundation built for decentralized finance and focused on social impact.”
Author and entrepreneur, Tim Ferriss, uses Endaoment for his nonprofit, The Saisei Foundation.
- The Giving Block: “The Giving Block makes Bitcoin and other cryptocurrency fundraising easy for nonprofits. Empowering mission-driven organizations, charities, universities, and faith-based organizations of all sizes to leverage crypto technology to achieve their mission.”
- CoinPayments.net: “Take advantage of our global crypto payment gateway made easy and accessible for everyone — whether you’re a business owner, crypto user, or even from another planet.”
As far as technically adding cryptocurrency donations functionality on your existing website, there are even WordPress plugin options for accepting crypto.
Crypto-Donations can be Anonymous
Contributions can (sometimes) be made anonymously, which increases the likelihood of receiving more donations.
One reason some people like to donate anonymously is to protect their identity.
This may be because of safety reasons, they might not want others knowing more about their finances.
Some people like to anonymously donate because it makes them feel like they are doing something good without having to be recognized for it.
It’s an interesting topic that comes with many pros and cons.
Crypto-Donations are More Secure than Regular Cash Donations
One of the most important things for charities to consider is how to accept donations securely.
While some people might be skeptical about making a donation online, cryptocurrency transactions are more secure than traditional cash donations.
Cryptocurrency transactions are trackable and irreversible, which means that your organization can’t be scammed out of money or experience a data breach that exposes donor information.
No Chargebacks on Crypto-Donations
Accepting crypto-donations is a great way for nonprofits to receive donations without the risk of chargebacks.
In other words, crypto-donations can be given without any fear of the donation being reversed.
Cryptocurrency donations can provide peace of mind for nonprofits by not having to worry about receiving a donation that might later be charged back.
Crypto-Donations can be Used Anywhere in the World
One of the most attractive features of cryptocurrency is that it can be used anywhere in the world. This opens up a whole new world for charities and nonprofits who may not be able to accept cash donations from individuals living outside of their countries.
Crypto-donations can help organizations reach out to those in need all over the world, regardless of what country they live in.
Problems arise when receiving donations from people who don’t live in your country as many charities and nonprofits are limited by international financial regulations. With crypto-donations, you no longer need to worry about these limitations since crypto can be sent from anywhere without stopping at borders or going through financial institutions.
The cryptocurrency can used be used across the world as part of their charitable work.
The Donation Process is More Transparent and Traceable on the Blockchain
The blockchain is a decentralized, public ledger that serves as the ultimate record of transactions between two parties. (Learn more about blockchain technology and their impact on charities.)
According to the World Economic Forum,
“Blockchains can be programmed to record not just financial transactions but virtually everything of value.”
The technology has the potential to make donating simpler and more transparent by enabling donors and charitable organizations to track donations on a public platform.
Depending on a charities’ setup, individuals who donate cryptocurrency will be able to see precisely where their funds are going and how they’re being used on a donation platform built with blockchain technology.
See Blockchain Technology Can Help Charities: The Future Of Giving for a deeper dive into charities and blockchain technology.
Cryptocurrency Donors Tend to be Younger and Wealthier than Traditional Donors
A study from LendEDU found that 54% of cryptocurrency owners are under the age of 35 and 68% have a household income over $75,000. The wealthiest demographic who owns cryptocurrency is people with a net worth over $1 million.
This could be because Millennials grew up during the dotcom boom and live in a world where technology is constantly evolving. They may feel more comfortable with digital currencies than other generations. And they may also have more disposable income to make donations to charitable organizations.
Crypto Donations Are Good for Nonprofits
When it comes to charitable giving, many nonprofits still rely on traditional methods of fundraising such as cash or bank transfers. However, cryptocurrency donations are quickly becoming a popular option for nonprofits.
In summary, nonprofits benefit from receiving cryptocurrency donations in a number of ways. One main reason is that they offer a more secure donation option for donors. Donations in cryptocurrency cannot be charged back, and the process is more transparent and traceable on the blockchain.
Cryptocurrency donors also tend to be younger and wealthier than traditional donors, helping nonprofits reach a new audience and grow their donor pool.
Don’t miss the opportunity to explore the benefits of cryptocurrency donations. Start accepting donations in crypto today!
- Further Reading: What Is Web 3.0 And How Do You Navigate Web 3.0?
// Website Policy Notice: The information provided in this article does not constitute investment advice, financial advice, trading advice, or advice of any sort; you should not treat any of Web3 Cares content as such. Perform due diligence and consult a financial advisor before making any financial decisions.