Becoming a Crypto Charity: three reasons beyond cryptocurrency donations that Nonprofits should embrace Web3
It is not surprising that thousands of charities have begun accepting cryptocurrency donations. After all, research has found that cryptocurrency donors are incredible generous, with one study by The Giving Block finding that the average crypto gift on #CryptoGivingTuesday was $12,600 USD, or 98.4x higher than the non-profit industry’s average.
Crypto philanthropy can also be a great hedge for charities looking to future-proof their fundraising strategy. After all, the average donor in the United States is 65 years of age, while the average cryptocurrency holder is 38 years old, almost 30 years younger.
All this of this probably sounds enticing for Nonprofits looking to diversify their fundraising strategy, and it should. After all, thousands of Nonprofits have benefitted from crypto philanthropy. However, the truth is, by embracing Web3, it opens Nonprofits up to a world of possibilities beyond simply accepting donations, and this is what charities should truly be excited about.
Engaging in the Web3 community can help expand your organization’s reach globally
If you’re looking to grow your Nonprofit’s reach globally, Web3 can be a great starting point. After all, there are few places that are truly as global as the Web3 community. In any given week, there is probably a large blockchain conference happening somewhere around the world, and Web3 collectives with staff from various countries working together to build something special.
When looking at the top 20 countries on Chanalysis’ Global Crypto Adoption Index, for example, there is representation from every continent accept Oceania, with the top 5 countries for adoption being Vietnam, Philippines, Ukraine, India, and the United States, in that order.
One of the primary reasons for crypto’s global reach is because Web3 is the ideal tool for global coordination. Decentralized Autonomous Organizations (DAOs), for example, enable individuals from around the world to have shared ownership in causes through a decentralized governance structure. Check out our blog post for an explainer on DAOs and social impact.
Also, the Web3 space inherently lives online, making it a natural fit for global collaboration. While many traditional sectors rely on brick-and-mortar-infrastructure, Web3 is almost entirely the opposite, making it easier to reach a diverse global audience
With over 1.5 million Nonprofits in the US alone, it can be hard for charities to breakthrough the noise and connect with new audiences. By diving head first into the world of Web3, it separates your organization from the pack. After all, their are only a few thousand charities currently accept crypto donations worldwide, which is a drop in the bucket compared to the millions of global charities.
By engaging in Web3, whether through accepting cryptocurrency donations or partnering with a blockchain company to enhance your service delivery, it can help your organization gain global exposure while connecting with a diverse and generous new community of potential donors.
Web3 presents a unique opportunity to form rewarding new partnerships for your Nonprofit
The Web3 ecosystem includes companies, collectives, and professionals from all walks of life, focusing on disrupting nearly every industry. Whether your charity is focused on food security, gender inclusion, climate change, extreme poverty, or anything in between, there is most certainly a Web3-native organizations looking to address the same challenge.
Many of these organizations are early in their development, making now a perfect opportunity to get involved on the ground level, and form mutually beneficial partnerships. Many Nonprofits have been able to successfully do this.
UNICEF, one of the largest NGOs in the world, for example, has formed a number of partnerships with Web3 organizations to further their mission to “save children's lives, to defend their rights, and to help them fulfil their potential, from early childhood through adolescence.” One of these partnerships was with Gitcoin, a Decentralized Autonomous Organization revolutionizing how communities raise funds for public goods projects through an innovative new tool called Quadratic Funding. This partnership aimed to raise funds for ten startups using technology to improves the lives and futures of children and young people, and the results were incredible. Nearly $100,000 in funds were raised from over 15,500 individual donors from all over the world. Not only were funds raised for an important cause, but UNICEF was also able to connect with 15,500 donors, many of whom likely never donated to UNICEF previously.
The Web3 ecosystem is well known for being highly collaborative and open to new partnerships that span sectors and continents. This may come from the inherent value placed by the Web3 community on decentralization and open-source building, leading to a spirit of collaboration being woven into the fiber of the broader ecosystem.
Overall, Web3 is an excellent place to form new partnerships with like-minded causes who are using blockchain to build a better world, which leads nicely in to the final reason Nonprofits should embrace Web3.
Blockchain is a revolutionary technology that can improve your Nonprofit’s operations
Web3 is more than just cryptocurrency. In fact, the underlying technology behind cryptocurrency, blockchain, is a versatile technology that can be used in myriad ways to improve the operations and efficiency of traditional organizations, especially Nonprofits.
Whether it’s using blockchain to monitor ocean clean-ups, to deliver emergency aid to survivors of natural disasters or war, to promote conservation efforts, to deliver Universal Basic Income to those in need, or anything in between, blockchain opens your organization to a world of possibilities to operate more efficiently, transparently, and to scale the impacts of your movement.
What’s truly incredible about Web3, however, is that new use cases are being discovered daily. By getting an early start in your Web3 journey, it will help your organization get comfortable with the technology and the community around it, so when these new use cases are discovered that can benefit your cause, you’re ready to jump on board and form key partnerships to scale your impact.
The time is now to become a Crypto Charity and develop your Web3 strategy
It’s not a matter of if, but when cryptocurrency fundraising become the norm and blockchain is used at scale by Nonprofits all over the world to advance their causes. That being said, it’s better to be an early adopter and to get on board now, than to wait and play catch-up in the future. If you choose the latter, it may be much harder to break through the noise and form key partnerships, reach new audiences, and truly benefit from the technology.
To Nonprofits, it is understandable that Web3 can be overwhelming and intimidating, but we’re here to help. Through NextGen Nonprofit, our consulting arm, we offer personalized support to help your Nonprofit develop a comprehensive Web3 strategy. Whether it’s accepting cryptocurrency donations, developing a Web3 marketing strategy, or forming key partnerships, we’re here to make it a lot easier for your organization.
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