Crypto-currency is widely being used by individual investors, e-commerce platforms, and even for peer-to-peer lending. With such a scope, it makes sense to motivate non-profit organizations to join the crypto-user list. By accepting digital coins as donations and investing in cryptocurrency, they can generate many funds for philanthropic purposes.
Concerns related to the adoption of crypto-currency
Crypto-currency is still facing a hurdle to get mass acceptance due to the lack of proper understanding among the masses. Even though many people use crypto-currency, many people, especially organizational structures, are fearful about adopting it or don’t know how to embrace it.
Likewise, many non-profit organizations are also slow in accepting and adopting crypto-currency. They are skeptical whether their donors would accept crypto-currency for helping them raise their funds to carry out charity activities. Some of the main reasons for this concern are the ill-repute on media, price volatility, and the complexity of adopting it. These issues need solutions for wider acceptance and adoption of cryptocurrency.
The justification for these concerns can be explained by narrating that Bitcoin has died hundreds of times, i.e., more than 380. However, still, we can see it functioning, which means that it is alive after overcoming hurdles. When it comes to price volatility, it is very important to maintain the ecosystem and crypto-donors are aware of it.
Many philanthropic institutions have adopted crypto-currency and are benefitting a lot from this charity donation method. This article aims to discuss some of the potential benefits of embracing crypto-currency and guiding non-profits on adopting it.
Benefits of adopting crypto-currency
- It Is Easy For Donors
Non-profits are usually reluctant to adopt crypto-currency because of the volatility factor. It is hard for them to raise funds, so they cannot watch their funds evaporate overnight. However, volatility is the same reason to which the donors get attracted. When they feel like the value of their coins decreases, they prefer to donate it before the incident happens.
However, it does not mean that the value will decrease, so it won’t help non-profits as there are many processors out there that allow the conversion into cash when the non-profits receive the payment without letting it devalue. Therefore, there is no risk of it losing value.
- It Is Secure
If the non-profits want the value of their digital currency to grow and they don’t want to convert it right away into cash, there is no risk of their digital currency getting hacked. Blockchain technology maintains the security of digital wallets; even the bank accounts are prior to being at a security risk compared to crypto-wallets.
Because bank accounts use cloud servers, the hacker can control it by accessing only one server on the cloud. However, crypto-currency is backed by blockchain technology which requires hackers to hack thousands of operating systems, i.e., computers.
Blockchain does not rely on servers; rather, it exists on the system of users. Therefore you are secure with crypto-currency, and you don’t need to be very careful. All you need to do is to keep your crypto-wallet offline and never forget your private key for your wallet.
- Regulation of crypto-currency
There exists a misconception that crypto-currency is not regulated. No doubt, no organizational or centralized structure distributes or mints crypto-currency, but it does not mean that there is no regulatory body. The regulators like IRS, SEC, CFTC, etc., keep an eye on how crypto-currency is managed. These regulators check if crypto-currency should be in circulation or not. The SEC controls the security and commodities of crypto-currency by considering it a traditional asset.
- Target prospective donors
Adopting digital currency allows non-profits to target many individuals who own the digital wallet and can be prospective donors. There is no exact estimation about the number of individuals involved in buying, investing, selling, and donating through crypto-currency. However, reports of the blockchain capital blog have shown that almost 9% of the world’s population owns a digital wallet. Nearly 60% are satisfied with the status of crypto-currency in financial technology.
- Maximize the volume of donation
The introduction of a new method of receiving donations increases the number of funds raised. Global NGO Technology report has shown that almost 1–5% of donations collected by the non-profits come from the crypto-wallet with a growth rate of more than 100%. A large amount has been donated to charity organizations through crypto-currency for the last few years.
- Improve your charity brand reputation
There exist hundreds of philanthropic organizations around the globe which accept charity in the form of cryptocurrency. Some of these crypto-initiatives are well-known for their widespread activity and reputation in the crypto-world. By adopting crypto-currency, you allow your brand to boost its visibility and enhance its reputation as an emerging charity that uses innovative technology. It also attracts the attention of crypto-donors, charity organizations, and media companies who are interested in your cause.
So, by making your place in the crypto market, you target the donors and improve your reputation.
- Spread the word
You are supposed to increase the knowledge of your employees, stakeholders, and your donors. You can tell them about crypto-currency and its prospective benefits and motivate them to join the crypt-technology. You can enhance their knowledge and understanding of crypto-currency because increased knowledge leads to better decisions. It is essential to keep up with the growth to move with the progress in the world. Otherwise, we can be alienated.
- Tax-free charity
Cryptocurrency provides a very efficient solution to donors and allows them to make donations without paying taxes. The amount that your donors may spend on taxes is your benefit of using crypto-currency. This can enhance your charity gift by up to 20%.
- Get the attention of crypto-philanthropists.
There are only a few charity organizations in the crypto-world. It is a very golden chance for you to get yourself recognized on the blockchain technology platform and earn the attention of crypto-philanthropists. The list of charity organizations on the crypto platform is small, and your probability of getting a donation increases.
How can your non-profit get started with crypto-currency?
Now you must be thinking about how you can get started using crypto-currency. Discussed below is the whole procedure.
1. Be sure you’re ready.
You need to discuss with your financial advisor that you want to adopt crypto-currency and ask him to discover what is necessary to get started with crypto-currency. Moreover, you need to make sure that you can protect yourself against possible scams.
2. Set up an account.
In the next step, you need to start setting up your crypto-currency account. There are several apps where you can make your account.
3. Create a donation landing page
In the next step, you are required to integrate your donations into your website. You can link your site landing page directly to your digital wallet.
4. Create a launch announcement
Now, you need to let your donors know about your existence on the crypto platform. You can announce through different platforms, including social media and email newsletters, etc., you need to tell them that you are accepting donations through cryptocurrency.
If you need any help in this regard, you can contact us.