Feel The Spirit
The holiday season before the 2022 new year signified a record in crypto donations. While charitable giving should occur year-round, this recent season of generosity is inspiring. DonorWERX, a powerful giving software, helps churches and charitable organizations go beyond collection plates and checks to tap into online giving. Offering donors the choice to give using digital currency puts your business at the forefront of fundraising. The idea of accepting crypto may seem daunting, but it’s not as difficult as it sounds. We’ll explain the significance of crypto donations and what it means for congregational and non-profit leaders looking to increase their fundraising.
What Are Crypto Donations?
Crypto donations are financial gifts in the form of digital currency or cryptocurrency (crypto). In 2021, about 21 million people owned cryptocurrency, which is 14 percent of adults in the United States. Interest continues to grow to the point that, most likely, more than 50 million will have crypto in 2022.
The price of Bitcoin, the world’s largest cryptocurrency, reached an all-time high of $68,000 during the mid-December holiday season. Bitcoin is created, distributed, traded and stored on the blockchain, which is a decentralized system. As compared to legal tender controlled by the government and a central bank, digital money isn’t controlled by anyone. When you receive a donation using Bitcoin or other cryptocurrencies, it can be converted to traditional cash.
As more people start to own and use digital currencies, it becomes easier for business leaders to incorporate crypto into their gift-giving payment options. Rather than making donations with cash, checks or credit cards, donors can use alternative currencies such as Bitcoin, Ethereum and other coins.
Common Uses for Crypto Donations
Crypto is one of four non-traditional ways churches can accumulate capital value. As a tax-efficient method of support, digital coins help organizations find unique and creative ways to connect with donors.
Digital currency can be used just like traditional payment methods. Examples of the ways people can make crypto donations include:
If you decide to accept digital currencies, you can offer the option for your congregation, members, stakeholders and others. You’ll be seen as a progressive organization that keeps up with the times, which will capture the attention of early adopters and younger generations.
Nonprofits Using Crypto Donations
As part of the seasons of generosity, the Bitcoin Black Friday event has been held where merchants offered special discounts for customers who made purchases using Bitcoin (BTC). Unlike previous years, in 2021, all proceeds were slated to go to the Built with Bitcoin Foundation to help build schools in El Salvador.
Some of the other organizations taking donations with crypto include:
- Salvation Army.
- Toys for Tots.
- Save the Children.
- American Red Cross.
- World Vision.
- Bethany International.
- People for the Ethical Treatment of Animals (PETA).
Just like these charities, we can get you set to take cryptocurrency. Check out these top fundraising ideas for churches and see how you can incorporate crypto donations to trigger seasons of generosity.
Advantages of Crypto Donations
Permitting the use of cryptocurrency offers many advantages for donors and organizations receiving non-traditional funding.
- Convenient – Crypto provides a more convenient and simpler transfer of funds for international donors. Organizations can leverage a more significant reach by making it easier for people to donate even if they live in another country.
- Inexpensive – Also, crypto eliminates the hassle and expense that comes with currency exchange rates, fees and processes. This permits international organizations to maximize the amount of money they receive.
- Efficient – Digital currencies are assets that may appreciate because capital gains aren’t taxed. In addition, donors can use digital currencies to reduce their taxable income.
- Safe – Crypto donations are safe, secure and private methods for exchanging currencies. Digital coins are irreversible, so you never have to worry about charge-backs or third-party interceptions.
While donating with crypto has benefits, it’s not flawless. The value of digital funds can be less stable and very volatile, leaving you at risk of losing assets.
The Future of Crypto Donations
Today, it’s believed that less than four percent of charities are set up to receive crypto. Many potential donors have the desire to donate funds using digital currency. The biggest problem is that 55 percent of crypto donors aren’t sure if they can donate with crypto. Also, they’re not sure how to go about it.
A recent DonorWERX article considered the future of crypto donations, particularly for churches. One of the first pastors to accept digital currency contributions did so back in 2013. Nowadays, more churches and non-profits are looking for alternatives to motivate people to give. Once they overcome skepticism and take time to educate themselves, they’ll realize it’s not as much of a challenge to obtain a digital wallet and start raking in donations.
There are quite a few of the best online giving platforms for churches from which you can choose. However, it may be challenging to find one that accepts crypto donations. Until acceptance of digital currencies reaches mainstream markets, your choices may be limited. That’s where DonorWERX comes in.
At DonorWERX, we’re always looking for new ways to help churches ramp up their fundraising efforts. Crypto donations are one such strategy.
Bitcoin and other digital currencies are making their way into consumers’ lives. Churches, non-profits and other companies can leverage crypto to expand their fundraising and appeal to more donors. Whether for regular tithing, fundraising campaigns or special events, seasons of generosity can be every day.