I first heard about cryptocurrency about 10 years ago. I remember being extremely skeptical of this new “trend” in commerce and investing. While mostly ignorant about the details of my investment, I decided to give it a shot. In 2019, I bought a single bitcoin for $5,800. Today, two years later, it is worth $48,000.
Obviously, in my case, this proved to be a good investment. But I must note that cryptocurrencies are extremely volatile, and it is not an investment for the faint of heart. But the question I want to discuss is what impact this new currency might have on nonprofit organizations and charitable giving.
Is crypto just a trend? Or will more and more people start doing business—and making donations—with cryptocurrency?
The statistics tell us that 220 million people use cryptocurrency today, and among millennials, crypto is swiftly overtaking stocks as the preferred personal investment. So, what does this mean for ministries and nonprofits?
According to The Giving Block 2021 Annual Report, crypto donations are expected to be the number one growing trend in philanthropic giving in 2022. In 2021 the average crypto donation was upwards of $10,500. It is interesting to note that currently only 2 percent of nonprofit organizations accept cryptocurrency donations.
While cryptocurrency is admittedly somewhat controversial, here are three reasons to consider incorporating cryptocurrency into your fundraising strategy:
- Diversify your revenue streams – If the global pandemic and subsequent supply chain shortages have taught us anything, it is that organizations cannot depend on a single revenue stream. Many ministries and nonprofits began to diversify in recent years by adding multiple ways for people to give (mail, website, social media, etc.). Some have also begun to incorporate planned giving programs into their organizations (wills, trusts, etc.). Accepting cryptocurrency donations further diversifies the revenue stream by not just adding another gateway, but by adding another asset source to the revenue stream. Diversification is critical to long-term stability, now more than ever before.
- Attract and engage new and younger donors – According to Gemini’s 2021 State of U.S. Crypto Report, the majority of individuals holding some form of cryptocurrency are between ages 25 and 44, with 63 percent of the remaining adult population being “crypto-curious.” Crypto also allows the donor to remain anonymous, which is attractive to younger donors who are perhaps disillusioned with social media and prefer to keep their personal details private. While this may prove to be somewhat frustrating to fundraisers who want to know everything about their donors, this is potentially the wave of the future.
- Stand out from the crowd – There are only a few ministries and nonprofits currently accepting crypto on their donation pages. For early adopters, this demonstrates your focus on innovation and emerging technology, and it opens the door to new funding sources.
So, what’s the takeaway?
Cryptocurrency presents one of the biggest opportunities for donor growth and opens the door to new potential donors. By donating crypto, as a highly appreciated asset, donors can make a bigger impact with lower out-of-pocket cost. Also, giving crypto may provide some tax benefits to the donor as well.
Millennials are the largest adult population in this country. Larger than the Baby Boomers, GenX, and GenZ … and millennials love crypto. Early adopters to crypto donations may well find a new generation of donors supporting their work through next-generation crypto assets.
For an organization to accept cryptocurrency gifts, a digital platform or website plug-in will need to be incorporated. Some examples are The Giving Block, Engiven, or a WordPress plugin like Cryptocurrency Donation Box can be added directly to your site.
Although it will require some time and effort to incorporate crypto giving into your long-term growth strategy, it is a potentially rewarding venture that is worth exploring.
Let Infinity Concepts help you incorporate the ability to
accept crypto donations into your fundraising plan.
CLICK HERE or call us today at 724-733-1200.
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