Educate Your Donors About Stock and Crypto Donations [+Template]
A barrier nonprofits often face with getting more donations of stock and crypto is properly explaining these types of donations to donors. Plus, some donors may have some misgivings or misunderstandings that you can easily address with the right communication strategy. Read on to learn how to educate your donors about these types of donations and encourage more giving. Plus, download our free email template to get the conversation started!
If you don’t offer a way for donors to easily give stock and cryptocurrency, you’re missing out – big time. 61% of Americans currently own stock and about 21% of Americans have owned crypto, and that number is expected to continue to rise. This means that it’s likely your donors have crypto or stock they could donate to your organization.
But if you aren’t sure how to properly explain these types of donations to your donors, having an easy way to give may not be enough.
In this article, we’ll walk you through explaining stock and crypto donations to your donors about how easy and valuable these types of donations are. Plus, download our free email template to make connecting with your donors even easier!
Donorbox + The Giving Block Makes Stock and Crypto Donations Easy
Donorbox’s integration with The Giving Block allows you to collect donations of stock and crypto without any extra steps for your donors. Check out this seamless integration in action on the Paul Watson Foundation’s donation page –
Learn more about this integration and how stock and crypto donations work in this blog.
The Benefits of Stock and Crypto Donations
1. Double the tax benefits
Donors who donate crypto and stock avoid paying capital gains taxes and can claim a higher tax-deductible amount overall. In other words, donating stock or crypto to nonprofits directly saves them from paying taxes on the accrued value of their assets and results in a higher overall donation to the nonprofit!
2. No relying only on liquid assets
Sometimes a donor may want to give more, but they don’t have enough liquidity to fund their gift. Donors who may not have the liquid assets to give can still support your organization by directly donating crypto and stock. This means more funding for your cause and a higher deduction for your donor!
3. Truly anonymous giving
An anonymous donation is hard to make truly anonymous. Even if the donor’s info isn’t shared with the public, your internal team will know who the donor is and how much they gave.
Donors who want true anonymity can donate cryptocurrency! Donors can give crypto without giving their information through a simple wallet transfer. If they would like a donation acknowledgment, they can share their email address.
4. Connect with younger generations
Since Millennials and Gen Z make up the majority of cryptocurrency ownership, accepting crypto donations helps your organization make meaningful connections with younger generations. Forging these connections means making lasting donor relationships with the upcoming generation of philanthropists.
5. Stock ownership is on the rise
The amount of Americans who own stock is at the highest rate since before 2008. This means that more and more Americans are interested in investing in the stock market – and there will be more people interested in donating stock, too. Offering an easy way for donors to give stock both acknowledges this trend and encourages more giving.
For a deeper look into these benefits, watch this super informative webinar with The Giving Block co-founder Alex Wilson!
Potential Concerns Your Donors Might Have
Now that you better understand the benefits, it’s time to address some concerns your donors may have about stock and crypto donations.
1. The process is complicated
Thanks to Donorbox’s smooth integration with The Giving Block, stock and crypto donations don’t have to be complicated.
Before, donating stock involved contacting your broker and managing your donation through several different steps. And donating crypto was an even more confusing process that involved connecting your crypto wallet with a broker’s. This integration allows your donors to easily process gifts of stock and crypto right on your donation form.
For stock donations, all donors have to do is select the ticker symbol and stock name, then enter the amount they want to give. Next, they’ll enter their contact info and broker details. That’s it! They’ll receive an email notification when the donation is complete. You’ll receive an email, too, and a check with the value of the stock shortly after. Learn more in this blog.
For crypto donations, donors will select the type of crypto and enter the amount they’d like to give. Then, they’ll receive a QR code or hex code to scan or copy – this will allow them to donate from their preferred wallet. They can then choose to give anonymously or share personal details. As long as they share their email address, they’ll receive a tax-compliant receipt. You’ll receive a check with the value of the crypto once it has been liquidated. Learn more in this blog.
Cryptocurrency relies on technology that uses a lot of energy provided primarily by fossil fuels. It’s reasonable that donors may worry about their carbon footprint when they make crypto donations!
Luckily, reassuring them is easy. The Giving Block is a leader in environmentally friendly crypto donations with their carbon offset initiative. They purchase twice their carbon offset to operate as a carbon-negative company, and they go above and beyond with educational initiatives to ensure the environmental impact of crypto donations is fully understood.
Learn more about their initiatives EcoGift and The Giving Block Green on their website.
3. It isn’t secure
Some donors have a misconception that donating crypto and stock may be less secure than other kinds of donations. This is simply incorrect! Donorbox and The Giving Block have the best security standards in the industry to help protect you and your donors’ information and privacy.
Donorbox offers constant monitoring and fraud detection so your organization has fewer chargeback fees. We equip our donation forms with cutting-edge security features to guarantee the security of user data while maintaining a seamless donor experience. Plus, ReCaptcha stops bots from using your form to test stolen card information to decrease fraud and spam. And so much more! Learn about all of our industry-leading security features here.
The Giving Block has strong customer verification tools, scam and account takeover mitigation, and a secure cloud architecture to help protect sensitive data. Learn more about how they protect donor data here.
Tips for Explaining Stock and Crypto Donations to Your Donors
It isn’t always easy to explain everything you know about stock and crypto donations in words. Here are some tips to help you communicate more effectively!
1. Segment your outreach
We’ve said it before and we’ll say it again: segmentation is the key to effective donor outreach. But it’s especially helpful when talking about stock and crypto donations.
Because the majority of cryptocurrency owners are younger, it’s important to effectively segment your audience and really push your crypto donations with your younger supporters.
2. Use social media
Your younger supporters – especially those who own crypto – are on social media, particularly Instagram, TikTok, Snapchat, and YouTube. Don’t neglect these platforms when sharing the news about your new donation types.
Pro tip: A short video is a great way to educate your social media followers about stock and crypto donations. Make it engaging and informative to compel your followers to become donors.
3. Show how easy the process is
To address your donors’ concerns that the process might be complicated, you can simply show them how easy it is!
You can do this through text, video, or even a series of screenshots. Remember, some people are more visual than others, so the ideal strategy will include some text and some visuals.
4. Share the benefits of both sides
This one might seem obvious, but it’s important! You may feel compelled to share the benefits for donors, but your donors will be equally interested in the benefit for your organization.
Stock and crypto donations result in a larger overall gift for your organization. Show your audience what that additional funding can help you do to serve your mission. After all, they are giving to you because they want to make a difference. They’ll want to know that gifts of stock and crypto will have an even bigger impact.
5. Don’t shy away from their questions
Donating stock and crypto may be new to your donors. Any questions they may have serve as important feedback for your communication strategy. And if one donor has a question, chances are good that others will, too.
Respond to these questions on social media or add them to a FAQ section on your website.
Free Email Template
If you’re ready to educate your donors about stock and crypto, download our free guide, How to Explain Stock and Crypto Donations to Your Donors. In the guide, you’ll find a summary of the tips and information we shared above, as well as an email template you can use to inform your donors about crypto and stock giving. You can also adapt it to create social media posts and short video scripts!
Stock and crypto ownership isn’t going anywhere. In fact, it’s on the rise, and if your nonprofit doesn’t offer an easy way to give these assets, you may be missing out.
Luckily, Donorbox’s integration with The Giving Block offers a streamlined way to give crypto and stock with just a few clicks. Your donors will enjoy an easy and secure way to boost their tax incentives and offer you more support!
If you’re not sure the best way to encourage more stock and crypto gifts, educating your donors is the first step. Use our free email template to get the conversation started and start accepting more stock and crypto donations!
Donorbox helps thousands of nonprofits boost their fundraising by upwards of 400%. Learn more about our features and sign up for a Pro or Premium account to access our integration with The Giving Block.
For more fundraising insights, check out the rest of our Nonprofit Blog. Subscribe to our newsletter for monthly blog content delivered to your inbox.
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.
Lindsey Baker Bower![Educate Your Donors About Stock and Crypto Donations [+Template]](https://donorbox.org/nonprofit-blog/wp-content/uploads/2023/10/Educate-Your-Donors-About-Stock-and-Crypto-Donations.png)
