Crypto fundraising is key to achieving strong long-term fundraising outcomes, especially among Millennial and Gen Z donors. Though donors give hundreds of millions of dollars in crypto donations to charities every year, the appeal of crypto is not exclusively about the numbers.
Because today’s donors are, on average, 65 years old, nonprofits should act now in order to future-proof their organizations and practice effective stewardship among younger donors.
Why crypto? With mass adoption rates skyrocketing, an overwhelming majority of Millennial millionaires holding crypto and a growing number of young investors losing faith in traditional assets, it’s clear that cryptocurrency fundraising will be an increasingly important method of giving to the next generation of philanthropists.
But what is the best way to accept crypto donations in 2023? With numerous platforms out there, let’s explore the options available for nonprofits and other charitable organizations.
What’s the Best Way to Fundraise and Accept Crypto Donations?
In the past few years, Crypto Philanthropy has helped nonprofits of all shapes and sizes meet their revenue goals. Crypto fundraising has even helped some nonprofits weather significant fundraising shortfalls caused by the COVID-19 pandemic.
The key word here is “fundraise.” The nonprofits that find the most success with crypto donors tend to be those that actively build a community of supporters in the crypto space—through genuine efforts to educate, steward, collaborate and fundraise.
Not sure how much time and money to invest in crypto philanthropy? By only dipping your toe in the water and not learning to actively fundraise crypto, you are betting on crypto donors somehow finding your cause.
At The Giving Block, we help donors find nonprofits and help nonprofits actively fundraise, which are two major keys we’ve found that drive success in crypto philanthropy.
Approaching crypto with caution and hesitancy, on the other hand, can severely limit your success as crypto donors are a passionate and generous group and like to support organizations that can meet them where they are.
Considering the “DIY” Approach? Here’s Why You Should Probably Reconsider.
Though anyone (including a nonprofit) has the option of opening a digital wallet that would allow them to transact with cryptocurrencies, simply having a digital wallet is not a good enough solution for most nonprofits that want to successfully fundraise with young, modern philanthropists.
For one thing, digital wallets require a working knowledge about crypto and blockchain. Second, you will probably need multiple wallets to accept different types of assets. Proper management of these wallets can get complicated fast. And while receiving a cryptocurrency donation will feel great, your organization will next need to decide whether to hold the received asset or to cash out—and will then need to know how to do so.
Most importantly, a digital wallet requires your team to be in charge of security, donor privacy, compliance and donor receipts, which can be especially challenging if you receive a generous but anonymous crypto donation.
With too much time spent worrying about these concerns, your team will lose precious time it could be using to design a unique crypto fundraising campaign. Luckily, there are several good solutions that can help your team maximize its fundraising outcomes with crypto donors.
Choosing the Best Crypto Fundraising Platform for Your Nonprofit
When evaluating a crypto fundraising platform for your nonprofit, start with big picture data points, like how many nonprofits already use the platform for fundraising crypto and the total crypto donation volume raised through the platform.
Your team should also consider if a solution has comprehensive offerings that makes it truly valuable to your nonprofit and worth the investment. Here are several product features and value-add factors these solutions may offer:
- Support for multiple cryptocurrencies
- Simplified wallet setup and management
- Automatic cash conversion upon receipt
- Automated tax receipts for donors
- Automatically generated IRS Form 8282/8283
- Crowdfunding or peer-to-peer fundraising options
- Donation match initiatives
- Fundraising awareness campaigns
- Experienced team devoted to crypto fundraising
- Services for high-net worth donors
- Stock asset donation acceptance
- Credit card donation processing
As you might expect, each platform offers a different set of features. In essence, choosing a cryptocurrency fundraising solution is an important decision, as it can impact how prepared your team will be to tap into the crypto community’s generosity and handle your new inflow of crypto donations.
The Top Crypto Fundraising Solutions for Nonprofits
Though a few nonprofits like Save the Children have accepted cryptocurrency donations since as early as 2014, most of these early adopters have transitioned from their original solution to another as the competition has evolved to offer greater tools and services.
We have compared popular crypto fundraising solutions for nonprofits: The Giving Block, Engiven, FundraiseUp and Classy. See the charts below for a breakdown of featured benefits and offerings from these different crypto fundraising solutions.
Crypto Donation Platform Product Feature Comparison
|Feature||The Giving Block||Engiven||FundraiseUp||Classy|
|Crypto Donations Accepted||Yes||Yes||Yes||Yes|
|Number of Cryptocurrencies Accepted||200+||~100||~100||10|
|Simple Crypto Wallet Setup||Yes||Yes||No||No|
|Automatic Cash Conversion||Yes||Yes||Coinbase only, not for Gemini||Yes|
|Impact Index Funds||Yes||No||No||No|
|Private Client Donation Services||Yes||No||No||No|
|Automatic Tax Receipts||Yes||Yes||Yes||Yes|
|Dedicated Crypto Client Success Team||Yes||No||No||No|
* FundraiseUp allows nonprofits to link either a Gemini or a Coinbase account. If you link your Gemini account, you have to manually sell donations.
In some cases, the offerings of one platform may better fit your nonprofit’s needs than another. In other situations, your nonprofit may be weighing several options with equal consideration.
Why Do So Many Nonprofits Choose The Giving Block?
Why do more nonprofits work with The Giving Block to accept crypto than all the other solutions combined? In short, The Giving Block has raised more than all the other solutions combined and boasts a superior client success team that truly understands the dynamics of the crypto community and its giving potential.
In addition to the product features shown in the table above, The Giving Block also excels in several other areas, such as total donation volume raised, and in its capability to provide additional value-add elements not offered by competitors. The Giving Block is also backed by Shift4, a publicly traded company, which adds a layer of trust and transparency.
Crypto Donation Platform Experiences & Value-Add Comparison
|Experience/Value-Add||The Giving Block||Engiven||FundraiseUp||Classy|
|Nonprofits Accepting Crypto||2,000+||~1,000||<500||<500|
|Publicly Traded Parent Company||Yes (NYSE: FOUR)||No||No||No|
Thousands of nonprofits, including many of the leading names in the charitable sector, choose to fundraise cryptocurrency with The Giving Block. Here are some of the key reasons why:
1. Highest Total Donation Volume
Since launching their platform, The Giving Block has raised more than $125M in cryptocurrency donations for nonprofits. That’s more than the total raised by the three competitors listed above, combined. The Giving Block has established itself as a go-to destination for crypto donors, who feel confident that they are donating to verified organizations using a safe platform.
2. Expert Crypto Fundraising Support
The other fundamental reason behind The Giving Block’s success is that it excels in its fundraising support. We develop industry-leading reports and guides for nonprofits, and offer in-depth education and training for nonprofit clients through webinars, one-on-one sessions, and much more.
3. Advanced Product Offerings
The Giving Block continues to expand its suite of products geared toward both nonprofits and donors. By empowering both charities and donors alike, The Giving Block has created a two-way ecosystem for crypto philanthropy. For example, automated processes help nonprofits streamline the administrative side of fundraising to allow them to focus on donor stewardship, while features like peer-to-peer fundraisers enable donors to tap into the generosity of their communities.
4. Added Value Opportunities
Another area where The Giving Block’s approach to crypto fundraising differs from competitors is its creation of awareness campaigns that receive significant media attention and generous support from numerous crypto companies and users. Initiatives like Crypto Giving Tuesday, NFTuesday and Bag Season create a foundation for nonprofits of all kinds to fundraise and engage with the crypto community.
Should Your Nonprofit Choose The Giving Block?
In short, The Giving Block offers nonprofits the ability to do more than accept crypto donations. Nonprofits that choose The Giving Block can make use of a powerful crowdfunding platform and a client success team dedicated to helping them learn how to fundraise from this new crypto donor demographic. Coupled with the reputation as a leader in crypto philanthropy, nonprofits using The Giving Block are getting a premium nonprofit crypto fundraising solution.
While The Giving Block’s pricing varies based on package, its fees tend to be higher than some of its competitors. Given the numerous offerings, this solution is ideal for nonprofits that want to learn the basics about crypto so that they can successfully fundraise and build a community of supporters from this new donor demographic.
The bottom line is that, although competitors may offer bits and pieces of The Giving Block’s solution, there is no other nonprofit crypto fundraising platform as comprehensive or offering the level of expertise as The Giving Block.
The easiest way to begin accepting cryptocurrency donations is to work with a team providing the most full-scale solution and best support with set up, onboarding, and starting your first campaign.
To learn more about The Giving Block’s platform, speak with an expert from our crypto fundraising team today.