Creating buy-in to accept crypto donations at your non-profit
Cryptocurrency adoption in the charitable sector has grown at an exponential rate over the past couple of years. More and more non-profit organizations are accepting crypto donations each day, and more value is flowing through blockchains to these organizations, supporting important social causes. This can be evidenced by the fact that The Giving Block, one of the largest facilitators of cryptocurrency donations, is on pace to process over $100 Million in crypto donations this year and is projecting $1 Billion in donations to flow through their platform in 2022. Binance Charity, the charitable giving arm of the large crypto exchange, on the other hand, has raised over $80,000,000 USD in crypto (at the time of writing) for a variety of important causes.
We have also seen major charitable organizations and international NGOs, such as UNICEF, Save the Children, and the American Cancer Society, to name a few, establish cryptocurrency funds to support their missions. However, it is not only large non-profits that are starting to accept crypto donations, and a quick perusal of popular crypto donation platform The Giving Block will reveal many small charities also vying for donations.
Now is the time for your non-profit organizations to get on board with crypto donations, or risk being left behind. Non-profits have always had to adopt to technological changes, whether it was the original acceptance of credit card payments for donations, the use of crowdfunding, or shifting to virtual services during COVID-19, and the adoption of crypto donations is simply another important technological trend that non-profits will have to adapt to.
One of the challenges, however, that some non-profits will face, is push back from Boards or senior management who are reluctant to begin accepting cryptocurrency donations. This could be for a myriad of reasons, including beliefs that the technology is simply a fad, or due to stigmas associated with it, such as it being the “currency of criminals”. That being said, the focus of this article is on creating buy in to accept cryptocurrency donations at your non-profit.
Crypto donations are going mainstream
One of the simplest strategies for creating buy in is to, well, show that other non-profits are already doing in, and that it is on its way to mainstream adoption. Above, I highlighted how large organizations such as UNICEF, Save the Children, and the American Cancer Society all accept crypto donations, but they are not alone. Other large charities accepting crypto donations include Mental Health America, The Leukemia and Lymphoma Society, United Way Worldwide, CARE, Feeding America, and even some University endowments.
If these massive organizations, with there large PR and legal teams, and extensive fundraising experience, think it is a good idea, then it probably is. It is likely that they put substantial thought in to it, had it vetted by their legal teams, had substantial discussion at their Board Meetings, and came to the conclusion that it is a winning policy.
The transparency argument
Transparency is one of the core values of cryptocurrency, and as such, most cryptocurrencies, by their very nature, are highly transparent and easily auditable. This makes it much easier for donors to see how much crypto is going into the charity, which can help hold the charity accountable. If donors see a significant amount of funds going to a charity, they expect to see results, and it helps ensure the charity puts the money to good use on meaningful projects.
In a future world where the vast majority of donations are made through transparent cryptocurrencies, it can help rebuild trust, as donors can know for certain how much in crypto donations a charity is bringing in, and the impact it translates to. For generations that grew up with the internet and social media, transparency is important to them. For most of their lives, they have lived in a world where they can get any information they want by hitting a few buttons, and thus, they truly value transparency, and will be more likely to support causes that do as well. These are the donors of tomorrow, and if you don’t get on board with the importance of transparency, then you risk losing them.
Spreading your message to new audiences
By accepting crypto donations, it enables you to spread your message to a much broader, more global audience. There are few communities that are as globalized as the blockchain and cryptocurrency ecosystem. A quick look at Chainalysis’ Global Crypto Adoption Index shows you how global the reach of crypto is, with every continent but Oceania (and of course Antarctica) having representation in the top 20 list of Crypto-adopting countries.
By adopting cryptocurrency donations, and joining the crypto and blockchain ecosystem, you can open your organization up to new audiences and a new type of donor that is hard to reach via traditional fundraising methods.
Talk money
Accepting cryptocurrency donations is a cost effective and efficient method of fundraising, and it can end up saving your organization substantial money that may have otherwise gone to fees.
In my blog post “Accepting crypto donations in the charitable sector,” I highlighted the exorbitant fees some donation platforms charge to charities. Global Giving, for example, charges 8-15% in fees, while GoFundMe charges 2.9% plus 30 cents per transaction.
Many charities elect to accept donations directly through their website via credit card, but this doesn’t prevent them from paying fees. In fact, typical credit card fees range from 1.3% - 3.5%, and this doesn’t account for the additional cut that goes to the payment processor.
Although these fees may seem minor, and well worth it, they can add up and end up costing organizations a substantial amount of money. This ultimately means less money is going to the non-profit, and more to intermediaries such as payment processers. This also minimizes the value of the donation and can be discouraging to the donor who wants their funds to go to worthy causes, and not wealthy bankers.
Most cryptocurrency transactions, on the other hand, are extremely low cost, especially relative to the alternatives mentioned above, and can help ensure a greater share of the donation actually goes to the non-profit, ensuring that each donation has a greater impact.
Conclusion
The adoption of cryptocurrency donations is on the rise, whether organizations like it or not, and it is important that your organization gets on board, or risks being let behind. Many non-profits were originally hesitant to accept credit cards or online donations, or to even make a website. However, in the end, they all did, perhaps after years of wasted time. Don’t make the same mistake with cryptocurrency. Get on board with this extraordinary movement and be a leader in the space!
Do you have any other pieces of advice you would give non-profit organizations to help create buy-in for cryptocurrency donations? Tweet us at @Crypto_Altruism, we’d love to hear from you!
