BitDonate vs. the Competition
Over the past few years, crypto donations have been on the rise. With the introduction of NFTs, crypto is getting even more attention as an asset vehicle. As a result, more people are learning about crypto, using crypto, and—as a side effect—donating it to charities. While it’s not yet a “must do” for your charity to accept crypto donations, it’s becoming more crucial with each passing day.
As we look forward to the future of crypto and realize all of the opportunities it can offer to charities, we’re in full support of organizations opening up the doors to this new donation vehicle. With that said, the donation software experts here at DonorWERX wanted to show you a side-by-side comparison of the top crypto donation software solutions, including BitDonate.com.
What Is BitDonate?
BitDonate is one of many platforms popping up to try and capitalize on the rise in crypto donations. Since crypto remains complex and confusing, most organizations don’t have an expert sitting around who’s ready to get your organization set up with its own wallet. Nor do you have the time to educate all of your potential donors on using that wallet to send you crypto.
The need to make crypto more user-friendly has long been recognized, but now that the general public is enthusiastic about using crypto themselves, especially for routine transactions like donations, it’s becoming more important than ever. BitDonate is one of the many platforms that strive to make sending and accepting crypto donations easier.
- Signup is free, and there is no monthly fee.
- Just connect your bank account to get crypto donations in USD.
- There’s a mobile app for iOS on the App Store and for Android through Google Play.
- It’s the world’s largest cryptocurrency donation platform, trusted by more than 2 million nonprofit organizations.
- Users can send popular currencies, including Bitcoin (BTC) and Ethereum (ETH).
With BitDonate, organizations receive an eWallet while donors walk through a simple process to send their chosen cryptocurrency to the nonprofit they wish to support. The biggest downside about BitDonate, though, is that it eliminates one of the most significant advantages of crypto. So, let’s dive in with this BitDonate vs. the competition comparison.
BitDonate vs. Traditional eWallet
Before we compare BitDonate to any other crypto platform, the fairest way to approach this debate is to first tell you how BitDonate differs from the basic eWallet that you could be using to accept donations. If you’re unfamiliar, a wallet is something you can set up to receive and hold crypto.
People can send crypto to your wallet if you provide them with its unique public key (which is a long string of characters), and you can access your wallet using a combination of the public key and private key.
Using an exchange, you can buy crypto using a credit card or even PayPal, Google Pay, etc., and then send it to your wallet. Some crypto holders install their wallets on local hardware, or you can use one of the many wallet providers that keep your wallet in the cloud, like MetaMask.
Regardless, 100% of the crypto in your wallet belongs to you. The biggest disadvantages include that the wallet requires some tech knowledge to set up, use, and accept donations. That’s where platforms like BitDonate come in.
BitDonate offers these perks over a traditional eWallet:
- You don’t need any tech know-how to sign up for BitDonate and get an eWallet.
- Your donors don’t need any tech know-how to send you crypto via BitDonate.
So, what’s the downside? Unfortunately, BitDonate does not actually allow organizations to hold crypto. Instead, when a donation is sent your way, it gives you the market exchange rate in fiat (i.e., dollars).
This is a huge downside because one of the biggest benefits of accepting crypto is that your organization can build a diverse portfolio of assets that could go from a few cents to thousands of dollars as Bitcoin did.
BitDonate vs. the Competition
Comparing BitDonate to a traditional eWallet shows you the primary advantages: It’s easier for you, and it’s easier for your donors. The setup time is minimal, which is great, but that’s the same thing that most crypto donation platforms seek to offer.
For instance, one of the most prominent players in this space is The Giving Block. The great thing about The Giving Block is that it allows organizations to accept crypto with ease, and you can keep your crypto in the same form it was donated to you in.
The ability to keep your crypto donations as crypto offers tax advantages because you owe no taxes until you sell. Likewise, maintaining crypto as crypto allows you to potentially realize significant gains. You might want to consult someone knowledgeable about crypto to help you determine what to sell, and when to sell so your organization gets the most profit.
However, based on statistics over the last 10 years, you’d be better off collecting crypto and doing nothing with it for a year than collecting crypto and spending the dollars right away.
Since BitDonate makes organizations accept crypto donations converted into fiat, it doesn’t really offer any benefit to the organization. Rather, the only thing it does is allow donors to go through the experience of donating crypto. While the donor might save some money by donating crypto without selling it themselves, realize that BitDonate is far from the only option.
Choosing the Best Crypto Donation Software
If your organization is looking to accept crypto donations, congratulations! You’re ahead of the curve. Simply having the mindset of wanting to stay on the cutting edge of tech and accommodating these emerging donation vehicles should take your organization very far. However, there are some key considerations to keep in mind.
Here at DonorWERX, we’ve worked with countless organizations. That means we’ve also seen many mistakes made, and a lack of results is why organizations often reach out to our team of experts for help. As we see more nonprofits accepting crypto, we’re seeing new mistakes that come with it. For instance, comparing BitDonate vs. the competition alone isn’t enough.
If you’re thinking about accepting crypto, you need to think about your organization’s resources to implement and manage this new donation type. You also need to think about your donors and whether they even want to use this type of donation. Will you have time to educate donors on this new method? Will your staff be willing to educate themselves so you can make the most of crypto holdings?
There are no easy answers when it comes to adapting to the changing landscape as a nonprofit. But being open to crypto donations is a good step. From here, instead of comparing BitDonate vs. the competition, it’s essential that you first lay out a strategy. If you don’t already have a donation and growth strategy for your organization, DonorWERX can help.
Future-Proof Your Organization for Sustainable Growth
Ready to take the next step and start accepting crypto? How about NFTs? Before you jump into this promising new asset class let’s first make sure. Your organization is making the most of the software opportunities and the community that’s right in front of you.
DonorWERX can help you implement a winning strategy to maximize generosity and tap into crypto donations. Contact us today to speak with our team about creating a digital donation management platform and get on the path to becoming a future-proof organization.