Is Your Nonprofit Ready to Accept Crypto Donations? Here Are Some Top Considerations for Choosing a Donation Platform.
Crypto donors are the future of giving for the nonprofit sector. Crypto Philanthropy is quickly becoming a fast-growing fundraising method as each year, more and more organizations are accepting donations in cryptocurrency.
The challenge for nonprofits, however, is making sure that they have the technological support to accept crypto and are able to embrace the largest portion of the crypto community as possible. Getting set up and maintaining your crypto donation system can be a very specialized process, as well as time-consuming.
If you’ve taken the time to learn everything you need to know about crypto and feel ready to have your organization begin crypto fundraising, these are the top questions you should ask yourself before you dive in.
How Many Cryptocurrencies Are You Going to Accept?
There are thousands of different kinds of cryptocurrency in existence, and nonprofits aren’t restricted to just accepting Bitcoin. Your organization can have the ability to accept donations in dozens of cryptocurrencies, ensuring that you’re able to connect with a large portion of the crypto community.
More than 70 leading cryptocurrencies can be processed through The Giving Block, including:
- USD Coin
Will You Convert to Cash or HODL?
When nonprofits receive a crypto donation, they have two options: transfer the crypto immediately into cash and take the donation at its current market value, or keep the crypto for the long term (what’s known as HODLing).
Understanding the pros and cons to both options is an essential aspect to being ready to accept crypto donations. However, not all crypto donation processing solutions allow for this flexibility. While it’s up to your nonprofit to decide on its priorities, consider that not having the ability to HODL may limit your organization’s ability to maximize the impact of your crypto donations.
Is Your Donation System Secure?
Security is essential for donations, particularly crypto donations. Crypto donors and the larger Web3 community are especially cautious about avoiding scams or having their crypto accounts hacked.
Any cryptocurrency donation processing platform should have comprehensive security measures in place, such as:
- 24/7 security scanning
- Protection against DDOS attack
- Encryption to protect sensitive data
This concern for safety is also why all of The Giving Block’s nonprofit clients can host a unique donation page on The Giving Block’s website with their donation widget. As a result, a crypto donor can be certain that donations made on our website will be sent to and received by the intended nonprofit.
How Familiar Are You With the Crypto Community?
Beyond the technical aspects of crypto donations, it’s also important to have an understanding of the community that uses crypto. Do you know the best social media platforms to use for donation appeals? What makes the crypto donor demographic different from other donor demographics? What kinds of questions do you believe donors will have for you?
After establishing a fundamental understanding of the crypto community, you’ll fully be ready to start accepting crypto donations.
Need help with some of these questions? Get our free PDF download, Crypto Fundraising 101: A Beginner’s Guide for Nonprofits, to find out more information.