Is Cryptocurrency the Future Wave of Charitable Donations?
We see cryptocurrency everywhere in the news. We hear about the unique opportunities some folks, corporations, and even nonprofits have to benefit from cryptocurrencies. It is now quite normal for people to put their trust in digital transactions. The question on many people’s minds is, “Could cryptocurrency be the new wave of charitable donations in the future?”
CoinDesk and other media outlets reported back in 2013 that Father Adaly Rosado Jr. in Goshen, NY, was one of the first pastors to accept virtual currencies as donations on his church website.
“In theory, in the future, you could exchange bitcoins for any currency. It would be faster to move money around,” said Father Rosado, explaining that traditional methods had not always worked in the past.
A Closer Look at Cryptocurrency and New Avenues for Giving
It’s clear that those looking for new opportunities for philanthropy often investigate tech advancements for their donations. Cryptocurrency as donations must be thought of as a new road on the donor journey. Donating online through credit card processing may have raised some eyebrows a decade ago, but today it is nothing new. Social media saw folks who were unwilling to submit personal data on the internet suddenly become active on social sites. Crowdfunding sites are also a popular way to help raise money quickly and notify a larger number of people.
A quick (and very basic) explanation of how it works: A cryptocurrency donation is made when a donor sends crypto or digital coins to your organization. The cryptocurrency, once in your digital wallet, can then be exchanged for traditional money, or “fiat.” How much money depends on the current value of that coin—and this value is always changing.
An easy way to think of bitcoin is like digital gold, which does not rely on a central government to manage it; anyone can use it anywhere in the world. You know the value of your gold in the banks, but you do not actually hold the bars in your hand.
A Potential Community of Donors
This new wave of cryptocurrency has created a new kind of wealth and new investors. But many of those investors who would like to give to charities simply don’t, because the charities (or nonprofits and churches) don’t have a way to accept crypto. The reasons for this could be many:
a) Cryptocurrency is a new thing, and they are still skeptical about this form of digital money.
b) They don’t understand how cryptocurrency works and have not made a move to educate themselves on it.
c) They don’t have a digital wallet to store the cryptocurrency.
The general consensus is that many crypto donors don’t just simply want to “give money” to a nonprofit. They want to truly make a difference and make a substantial change through their financial influence. And, they want to be involved in the change more directly—in the same way that crypto enables direct transactions in the financial world.
On top of this, many of the new crypto-rich can still remember when they were struggling financially. They understand the needs of many around the world and want to use their newfound wealth in unique, philanthropic ways.
It is interesting to note that big organizations such as the American Red Cross, GiveWell, and Wikipedia all accept donations in bitcoin. The next innovation to transform philanthropy is certainly bitcoin.
But there is always a bit of skepticism about new transaction methods. Only the charities that do their research and study technology’s potential to help them move ahead in the nonprofit space will benefit.
At DonorWerx, we encourage churches to look into new ways of accepting donations, because as the world advances, churches must find easier, faster, and more efficient ways to appeal to donors. Do check out our other blog on best fundraiser ideas.
A Further Look into Cryptocurrency
What if it took something as simple as providing an option for people to donate to your church in bitcoin?
In our next blog series, we are going to explore cryptocurrency and donations. We can recommend solutions based on our experience with other churches that have used digital coin transactions for donors. In the end, it is up to each church leader, manager, and fundraiser to educate themselves on this current technology. The organizations that make the effort to learn and understand the crypto community will be the ones that grow on this unique journey.
Cryptocurrency is not something to go into blindly. Once you decide to accept donations in bitcoin or other digital coins, make sure you understand how it works, and how it can add value to your church.
How DonorWerx Can Help
As with any new fundraising efforts, there is often uncertainty during the initial transition and adoption phase. Expect this steep learning curve when setting out to understand cryptocurrency. At DonorWerx, we help you to streamline your giving process, so that you can grow and transform. Call us today for an introduction to our digital resources and made-for-you programs for pastors and leaders.
