It is predicted that donors will make $10 billion in crypto donations over the next decade. Sounds like it's time for your organization to start accepting gifts of cryptocurrency! In this guide, we share the benefits of cryptocurrency donations - for nonprofits and donors - plus how you can easily start accepting these gifts using your online donation form.
Cryptocurrency is everywhere these days. But is this a trend or is cryptocurrency here to stay? And if it’s here to stay – should your nonprofit start accepting cryptocurrency donations?
The answer is simple: yes! If the popularity of crypto continues to hold, as it’s projected to, the 2023 Annual Report on Crypto Philanthropy forecasts up to $10 billion in crypto donations over the next decade. That’s a lot of money your organization might miss out on if you don’t have an easy way to start accepting cryptocurrency donations.
But fear not! This article will walk you through the ins and outs of crypto donations, including reasons why your nonprofit needs to start accepting them and how you can easily do so using Donorbox’s new integration with The Giving Block.
To learn more about crypto donations and how they can benefit your organization, watch this 20-minute podcast by Alex Wilson, co-founder of The Giving Block, and gain the knowledge you need to make an informed decision.
First, let’s break these types of donations down.
Cryptocurrency is a digital currency that was created using encryption algorithms and blockchain technology. Bitcoin and Ethereum are examples of modern cryptocurrency that holds significant value in other currencies.
Donors can choose to give cryptocurrency instead of cash for a variety of reasons. For example, donating their crypto might help them avoid paying capital gains taxes if their coins have grown in value since they’ve owned them. In most cases, they can also deduct the value of their donation from their taxes.
Typically, crypto donations are transferred from the donor’s crypto wallet to a broker’s. The broker then liquidates the crypto and provides the nonprofit with the fair market value of the sold currency.
Donorbox has an easy-to-use integration with The Giving Block that makes accepting cryptocurrency donations super simple. Any organization in the U.S. with a Donorbox Pro or Premium account can enable the integration on their donation form.
Once enabled, donors can simply select to donate crypto, add their contact information if they’d like to get a receipt, and then they’ll receive a QR code and hex code to donate from the crypto wallet of their choice. It’s quick and seamless!
Sign Up to Accept Crypto Donations!
Now that we know what crypto donations are, let’s look at some reasons why accepting cryptocurrency donations benefits both nonprofits and donors.
When you open up your fundraising strategy to include crypto donations, you’re opening the door for more people to give – especially Millenials and Gen X.
Out of the 45 million cryptocurrency users in the U.S. alone, Millennials make up 57% of total ownership – while Gen X make up 20%. Accepting crypto donations means inviting Millennial and Gen X donors who otherwise might not think about philanthropy to consider supporting your important work.
There’s a good reason why more and more donors are interested in donating crypto. Doing so helps donors with their taxes in two ways –
More tax perks mean more incentives to give…and give more.
There’s an incorrect assumption that someone can only donate if they have enough liquid assets to do so. This is not the case!
Donations of crypto and stocks help some donors, who may not have as many liquid assets, give even more. They can simply donate directly from their crypto wallet, without having to liquidate those funds first.
Due to the crypto technology, it’s easy for crypto donors to give fully anonymously. They simply transfer the crypto they want to donate from their wallet.
With Donorbox’s integration with The Giving Block, they can donate anonymously and still include their email so they can receive a tax-compliant receipt.
Donors might feel more confident giving large amounts due to how secure the crypto technology is. Blockchain technology creates a secure, uneditable record of transactions.
Whereas cash and checks might be intercepted, donating crypto will always go to the intended source – meaning nonprofits get the money their donors intend to send them.
Donorbox’s integration with The Giving Block allows nonprofits to accept crypto and stock donations easily and efficiently right from their donation form.
Any organization located in the U.S. that has a Donorbox Pro or Premium account can enable this integration on their donation form so donors can immediately start giving crypto and stock donations.
Donors will simply select their crypto type and donation amount, like this –
Next, they’ll choose whether they’d like to donate anonymously or add their personal information. They can receive a tax-compliant receipt either way.
Then, donors will receive a QR code and hex code, which they can either scan or copy to donate from the crypto wallet of their choice.
You’ll receive an email notifying you once the donation is complete.
From there, the crypto donation goes into Renaissance Charitable’s wallet until it can be confirmed. Then, it will be liquidated and the nonprofit will receive the cash. It’s really that easy!
Be sure to check out this step-by-step guide for this exciting integration to learn more.
Cryptocurrency is more than just a buzzword! It’s an increasingly popular way to store and share wealth – including donations.
Offering yet another way to give means you’ll catch the interest of more donors while allowing them significant perks like tax deductions and avoiding capital gains taxes. Plus, you’ll have the opportunity to connect with the generations that are ruling crypto right now – which can boost your donor acquisition and help you create lasting donor relationships.
Donating crypto is quick, secure, and easy for your donors, especially when you have the integration with The Giving Block enabled on your Donorbox donation form. Are you ready to take the next step and start accepting stock and crypto donations? Read more about this exciting integration here and click here to learn more about and sign up or upgrade to a Pro or Premium account!
Donorbox provides nonprofit organizations around the world with innovative and effective fundraising tools and resources that help them help others. Beyond enabling cryptocurrency donations for your organization, Donorbox also offers Donorbox Live™ Kiosk (a giving kiosk app), Donorbox Events, Text-to-Give, Peer-to-Peer, and more. Find out more about Donorbox on our website and sign up for your organization account today here.
Looking for more tips to empower you on your fundraising journey? The Nonprofit Blog provides several guides, ideas, how-tos, and more that cover a variety of topics, from online giving to fundraising events and beyond.
With Donorbox’s integration with The Giving Block, the donated cryptocurrency goes into Renaissance Charitable’s crypto wallet, where it is confirmed on the blockchain before being liquidated. You won’t have to hold it at all! Instead, you’ll simply receive a check for the value of the crypto once it’s sold.
Yes, crypto donors receive tax benefits. If they’re donating crypto that has significantly increased in value since they bought it, donating is a way to avoid capital gains taxes. Plus, donors can deduct the value of crypto donations from their taxes.
Because everything is handled electronically using encryption and blockchain technology, crypto donations are very secure.
Yes, there are many nonprofits taking advantage of cryptocurrency donations, including several that are utilizing the integration with Donorbox and The Giving Block to do so. Check out the Captain Paul Watson Foundation, which is raising funds via online donations as well as crypto and stock to support, educate, and raise awareness for ocean conservation efforts.
When someone donates crypto through the Donorbox integration with The Giving Block, donors can choose to give anonymously and still share an email to receive their receipt for tax purposes. Their email won’t be used in any other way so the donors can remain entirely anonymous while still getting their tax benefits.
Lindsey spent years wearing many hats in the nonprofit world. Whether she was helping arts nonprofits with their messaging and content, planning a fundraising gala, writing an NEA grant proposal, or running a membership program with over 400 members, she learned how to navigate – and appreciate! – the fast-paced world of fundraising. Now, she loves sharing those hard-earned lessons with the Donorbox community.
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Lindsey Baker Bower