According to a new study conducted by Deloitte, an overwhelming 93% of businesses taking Bitcoin payments report noticeable revenue growth and brand perception improvements. But does this trend apply to the nonprofit sector, too? And in the bigger picture, how does accepting Bitcoin donations benefit organizations with a charitable mission?
This article will walk your organization through the following topics:
What the Deloitte Survey Says About Merchants Accepting Bitcoin
In its latest report entitled, “Merchants getting ready for crypto,” Deloitte shared a few exciting findings drawn from survey responses of more than 2,000 US-based businesses in the consumer goods and services industry.
The study, released in collaboration with PayPal, was designed to “examine the role of digital currency in the rapidly evolving world of transactions.” Overall, the findings painted an optimistic picture of different ways that businesses could benefit, or are already benefiting, from accepting Bitcoin and other cryptocurrencies.
Most Businesses Plan to Accept Cryptocurrencies Soon
Notably, businesses that responded to the survey tended to believe that accepting crypto payments would give them a competitive advantage over those that do not.
Nearly all of those businesses that already take crypto payments—93% of them, to be exact—have already seen a positive impact on their customer growth and brand perception. These businesses link the ability to accept crypto to improved customer experience, growing their customer base, and creating an impression of being a cutting edge company.
Over the next 24 months, nearly 75% of businesses surveyed “reported plans to accept either cryptocurrency or stablecoin payments.”
The survey also found a few other commonly-held beliefs about crypto that were shared by most businesses:
- 87% of organizations that accept digital currencies “currently have a competitive advantage in the market”
- 85% believe that “use of digital currencies for regular, everyday purchases will increase exponentially over the next few years”
- 83% predict that digital currencies will become a form of legal tender
Why Consumers Are Motivated to Use Bitcoin and Other Cryptos
The survey found that adoption of cryptocurrencies by businesses is fueled by the perceived demand from consumers. With more than 290 million crypto users worldwide, merchants can’t afford to ignore the rising interest in digital currencies like Bitcoin and Ethereum. In fact, most businesses (83%) expect this interest to increase over the next 12 months, according to the survey findings.
What’s fueling this interest in crypto?
People all over the globe are attracted to cryptocurrencies because crypto can have a high-return investment potential. But here are a few other factors driving crypto adoption you may not be aware of yet:
- Belief that cryptocurrencies can serve as a hedge against the inflation of government-backed currencies
- Rise in the diversification of crypto assets beyond Bitcoin, which is the first cryptocurrency
- Growing dissatisfaction with more traditional investing methods such as stocks and property
- A greater overall sense of data privacy offered by crypto and blockchains
- Increased regulation of cryptocurrencies from governments, which gives some users a greater sense of security
Most directly related to a business’s needs, the digital payment solutions offered by crypto—such as the ability to handle fast transaction speeds from anywhere in the world—are seen as priorities, especially to younger generations that grew up with the internet and smartphone technology.
What Crypto’s Growth Means for Nonprofit Organizations
The unstoppable growth of crypto adoption isn’t just a priority in corporate boardrooms. Increasingly, nonprofits are taking advantage of the “crypto opportunity” to improve their fundraising outcomes.
Some charitable organizations have been accepting crypto donations for nearly a decade, but it has only taken off as a sustainable source of fundraising in the past few years. Fueled by the crypto bull market run of 2021, nonprofits received more than $300 million in donations last year. Today, thousands of nonprofits accept cryptocurrency donations—and even use NFTs as a strategic tool for fundraising.
In 2021, nonprofits using The Giving Block as a crypto fundraising solution found success by:
- Raising over $69 million in crypto donations
- Receiving an average donation of more than $10,000
- Participating in viral fundraising campaigns like #CryptoGivingTuesday
Crypto is the only asset class that people seem to be super passionate about. I get phone calls and texts about it constantly from donors. I didn’t expect as much passion around it. But I believe that their passion drives generosity.
If the widely-believed forecast that crypto payments will be ubiquitous within the next five years comes true, nonprofits should take steps now to prepare for this new reality.
But the overall growth of user and business adoption isn’t the only reason why nonprofits should consider accepting crypto donations. There are positive tax implications for crypto donors that most nonprofits aren’t aware of yet:
Because the IRS treats digital currencies like property for tax purposes, the benefits of donating cryptocurrency to charities often outweighs the option of donating with cash. By donating cryptocurrency to a registered 501(c)3 organization, many donors will be able to write off their donations for a tax deduction. Crypto users also won’t have to pay capital gains taxes on crypto that has been donated directly.
Ås you consider the priorities of your Millennial and Gen Z donors in this light, ask yourself if they would rather donate some of their crypto assets to support your cause, or their cash? Accommodating the needs of younger generations of donors should be a top priority.
There’s More to Know About Crypto Donations
If recent history teaches us anything, it’s that it pays to be early to trends. Today, crypto adoption is on pace with Internet user growth in the late 1990s, and we know how dramatically the web transformed the way we learn, conduct business, and interact with our peers.
Assuming that crypto growth continues on its upwards trajectory, every merchant and nonprofit on the planet will have to adopt Bitcoin and other cryptocurrencies as a form of payment or charitable donation to stay relevant.
As both businesses and nonprofits all over the world are discovering, accepting crypto doesn’t require a full revamp of their revenue-generating strategies. But for nonprofits, doing so can diversify funding sources and help development teams connect with a younger donor base, setting the stage for long-term positive engagement for years to come.
To learn more about The Giving Block’s all-in-one crypto fundraising solution, trusted by 1,700 nonprofits, subscribe to our weekly e-newsletter or get in touch with our team for a free product demo today.