Five ways accepting crypto donations can help the charitable sector
Every day, more and more charities are starting to accept donations in cryptocurrency. Although there are hundreds of amazing charities all over the world that now accept crypto donations, they are still few and far between, with the majority of charities sticking to traditional donation platforms.
Some charities may view accept crypto as too complicated, and they may be turned off by some of the stigmas associated with cryptocurrency. That being said, accepting crypto donations can be highly beneficial for charities, and should be advocated for.
Here are five ways accepting crypto donations can help the charitable sector.
1. It makes donating easy and efficient
Crypto can be easily sent from one wallet to another from anywhere in the world with a few mouse clicks. The donations are near instantaneous, whereas many traditional donation platforms have a processing period of a couple of business days.
2. It can save charities a significant amount in 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. These fees eat away at the money going to the charity, ultimately reducing the impact of the donation. Donating crypto can significantly reduce the overhead one has to pay by effectively cutting out the middle man.
3. It encourages transparency
Most cryptocurrencies are highly transparent and easily trackable. Donors can see how much crypto is going in to the charity, which can help hold the charity accountable. If donors see a significant amount of funds going in to a charity, they expect to see results, and it helps ensure the charity puts the money to good use on meaningful projects.
4. It can diversify your revenue
Crypto can open your charity to new markets and help diversify your revenue. Whereas many traditional donation platforms require a credit card or traditional bank account to make a donation, donating by crypto simply requires that you have a wallet with crypto in it. By accepting donations via crypto, it can open you up to new potential donors that may not have contributed to your cause otherwise.
5. It opens the door for future organizational use cases
Many charities provide direct funding to their beneficiaries. For example, an emergency aid organization may provide victims of a natural disaster with money to purchase essential items, whereas a refugee support organization may provide newcomers with funding to help them get off to the right start in a new country. If charities accept crypto donations and begin building up their confidence in the power of cryptocurrency, it could open the door to future use cases for their organizations, such as using crypto to provide direct funding to beneficiaries. Using crypto in this way would provide a more efficient, secure, transparent, and easily auditable alternative to traditional means.
What are some of the other ways accepting crypto donations can help the charitable sector? Tweet us at @Crypto_Altruism to let us know what you think, we’d love to hear from you!
