It seems that crypto has finally found its way into the world of nonprofits. For years, organizations have been struggling with how to improve donation conversion rates and bring in more donations. With so many options on the table, it's not surprising that some have turned to cryptocurrency as their go-to fundraising strategy.
According to Alex Wilson, the CEO of the cryptocurrency donation platform known as The Giving Block, there has been a 10x growth rate in nonprofit institutions accepting cryptocurrencies for donations in 2021 alone. This is a huge step in the right direction for cryptocurrency's journey to mainstream recognition.
One of the biggest hurdles for nonprofits accepting cryptocurrency is the lack of knowledge and resources. This has led to immense confusion on how to go about accepting cryptocurrencies, which has been challenging for organizations that lack the technical know-how to orchestrate cryptocurrency transactions... until now.
The Giving Block is a well-known cryptocurrency donation platform that was founded in 2018 with the goal of solving this very problem. The company has been a driving force in helping nonprofits learn about and accept various cryptocurrency donations and today there are over 1,000 nonprofits utilizing the platform.
You might expect that only cutting-edge nonprofits would be the ones to accept cryptocurrency donations, but you'd be wrong. In addition to institutions like Wake Forest University and The University of Alabama, you'll find some of the most prestigious foundations in the world such as the American Cancer Society and Save the Children.
The benefits of crypto donations aren't just limited to nonprofits though. Cryptocurrencies like Bitcoin offer donors a unique way to contribute that comes with a number of advantages.
With the surge of cryptocurrency investors over the last 5 years, donation platforms like The Giving Block open up a new way for these donors to give back using a process that previously required multiple steps and confusing tax guidelines around these transactions.
In addition to the generous treatment being applied to crypto donations, many investors are beginning to ask about the possibility of donating NFTs or non-fungible tokens to non-profits.
The rise of this type of tokenization is not without its challenges though. In an interview with CoinTelegraph, Alex Wilson mentioned that "it gets complicated with NFTs since there isn’t a lot of guidance from the IRS and other tax agencies on the tax treatment of NFTs." Instead, The Giving Block recommends donating the sale proceeds to the nonprofit directly until IRS guidelines become more clear-cut around the emerging technology.
Bitcoin Depot is another company helping to usher in this new era of accessibility in the crypto space. Not only do they offer a way for people to buy and sell crypto with cash, but they also provide a fast track to mainstream adoption with their vast network of over 6,500 Bitcoin ATMs across the United States and Canada.