In 2021, over $300 million worth of cryptocurrencies were donated to nonprofit and charitable organizations. Thousands of nonprofits have begun accepting cryptocurrency donations, making it easy for crypto investors to donate to their favorite causes.
Charities are quickly embracing cryptocurrency. Here are the top four reasons why many organizations are tapping into this new revenue source to diversify their revenue and donor base.
Crypto Opens The Door For A New Donor Demographic
Nonprofit organizations are always looking for ways to connect with younger people who can become long-term legacy donors. The average donor in the United States is 64 years old and makes two charitable gifts a year. By accepting donations and leaning into crypto fundraising efforts, nonprofits are opening the door to a younger donor demographic.
According to Pew Research, 43% of U.S. men ages 18 to 29 say they have invested in cryptocurrency. Meanwhile, only 8% of people ages 50 to 64 and 3% of people age 65 or over have dabbled in crypto. The crypto market is currently worth approximately $1 trillion at the time of writing, which means that by accepting crypto donations, nonprofits are targeting this young demographic who own a large chunk of the crypto industry’s wealth.
Not only is this a younger demographic to target, but it’s also a demographic with disposable income. According to Gemini, the average crypto owner makes $111k a year, meaning that they have disposable income that can be donated.
Crypto Provides Unique Marketing Opportunities And Brand Awareness
Accepting cryptocurrency donations is not just a fundraising tool, it’s also a great opportunity to draw media attention and build brand awareness. Once a nonprofit accepts crypto donations, it opens the door for NFT creators looking to add a philanthropic component to their NFT projects. We’ve found that celebrity-endorsed NFT projects tend to draw media attention, especially when the proceeds are being donated to a good cause. By aligning with certain NFT projects, nonprofits are opening the door to a new group of potential donors and building awareness about their mission.
The Crypto Community Is Incredibly Generous
Did you know that crypto investors are more charitable than other types of investors? In 2020, 45% of cryptocurrency investors donated $1,000 or more to charity, while that same year, only 33% of the full investor population donated.
How To Know If Accepting Crypto Is Right For Your Nonprofit
For many nonprofits, deciding if and when to accept crypto donations is a big decision. We’ve found that those most successful with crypto fundraising have someone on their team who is digitally native and social media-savvy. It’s not necessary to understand crypto in order to fundraise it, but those who have team members dedicated to ensuring that the nonprofit has an online presence are innately more successful than those who rely on old-school donation methods.
This is because the crypto community is a younger donor demographic that naturally spends more time online than the traditional 65+ donor demographic. By already having an online presence, it’s easier for crypto donors to find and donate to your nonprofit.
How To Accept Crypto Donations
Before deciding which crypto processing solution is best for your nonprofit, consider the following:
- How many cryptocurrencies can the donation platform accept?
- How does the nonprofit handle tax receipts for donors?
- Does it provide fundraising support and technical assistance?
- Has it built successful fundraising programs for other nonprofits?
By asking each of these questions, you are one step closer to finding the proper crypto processing solution for your nonprofit’s specific needs and embracing the emerging world of crypto philanthropy.