How Nonprofits Can Accept Crypto
Whether you’re for it or against it, cryptocurrency is quickly becoming a staple of online transactions. And if you run a nonprofit, being for it means accepting more donations from a broader demographic. What’s more, the cryptocurrency market is worth over two trillion dollars—and it’s only going up from there.
Put simply, there are a host of reasons why you should accept crypto donations. But how can your nonprofit harness the power of crypto?
We’ll be looking at the different ways your organization can accept donations in Bitcoin, Ethereum, and beyond.
Methods for Accepting Crypto Donations
Gone are the simple days of accepting cash at a bake sale. Now, people want to pay with credit cards, debit cards, cash transfer apps (Venmo, Cashapp, etc.), and crypto. Cryptocurrency fundraising is a little trickier than these forms of payment. That said, it doesn’t need to be a headache.
There are two main ways nonprofits can accept crypto.
1. A Crypto Wallet
A crypto wallet is a place that securely stores the information required to interact with your cryptocurrency. It also verifies transactions.
There are “hot” wallets, which connect directly to the Internet and are best for frequent transactions, and “cold” wallets, which are offline and better for long-term storage. Wallets may be on your desktop, accessed via a browser, or even on a mobile device or hard drive.
With a company crypto wallet, you can accept currencies as they are. There’s no need to convert the contribution into fiat currency (a fancy way to say government-regulated currency, like USD or the Euro).
Bitcoin goes in; Bitcoin comes out. All a donor needs is your wallet address.
But with a wallet, when you do want to turn your crypto into dollars, you can’t convert it directly. You have to sell it. As the popularity of crypto has risen, finding a buyer on a coin exchange site is quick and straightforward—it’s unlikely you’ll ever be stuck trying to sell well-regarded crypto like Bitcoin or Cardano.
2. A Payment Processor
Crypto payment processors handle all the technical permissions and privacy aspects, so you can start accepting cryptocurrency right away. Here are a few services that can act as your gateway to accepting crypto.
BitPay has been in the industry for over a decade, and they’ve used that time to create an intuitive platform for businesses and customers alike. They accept major cryptocurrencies like Bitcoin, Litecoin, Ethereum, and Bitcoin Cash, then convert them into your local currency and make a deposit to your bank account the next business day.
Their service is secure and easy to integrate with your website. There’s even a BitPay prepaid debit card available!
You’re a nonprofit, so why not opt for a platform made specifically for you? Engiven is designed with 501c charities in mind. The service creates donor receipts automatically and accepts over 35 cryptocurrencies. There’s no annual fee or signup cost—just a flat rate on currency conversions.
Add their widget to your website, and you’re ready to rake in the crypto.
CoinPayments is a prime payment processor for a few reasons. First, it accepts over 2,000 different cryptocurrencies and can convert them automatically.
Second, the service only charges a 0.5% processing fee on transactions—far lower than many competitors.
Lastly, there’s an app for Apple and Android devices, which allows users to accept crypto on the ground. If your nonprofit does in-person fundraisers, CoinPayments is a terrific option.
The Giving Block
Another platform that specializes in crypto donations, The Giving Block is involved with over 400 major charities and universities. In addition to providing a payment gateway for your website, they also list your organization on their platform, boosting your reach.
Features include the ability to create automatic donor receipts and the choice to convert your crypto or hold onto it. The Giving Block is all about making crypto-giving easy, and they do it well.
Kickstart Your Crypto Fundraising Game
Now you know how to accept cryptocurrency donations. But that’s only half the battle. With your added ability to accept contributions, it’s time to reach the masses. Our team at Puzzle Pieces Marketing is ready to help take your fundraising game to the next level.
From social media strategy to marketing to creative design, our services can set you up for success in the world of crypto donations and beyond.
Give us a shout today—we’ll ensure your cause is in the spotlight.