Summary: In today’s podcast Pat Duffy From The Giving Block and Stephen Halasnik from Financing Solutions discuss how cryptocurrency adoption by many nonprofits has dramatically turned the tide of nonprofit fundraising in recent times. Nonprofits that have leveraged digital currency in their fundraiser have increasingly expanded their revenue streams to finance their projects more efficiently.

Cryptocurrency and Philanthropy for Nonprofits

Technological advancement has dramatically changed our normal way of doing things, including how we do online transactions in recent times. The wave of digital updates has cut across virtually every facet of life, including nonprofit virtual fundraising campaigns. For instance, cryptocurrency for nonprofit fundraising is gradually becoming the norm rather than the exception. Cryptocurrency- a form of digital money that enables individuals to transmit value in a digital ecosystem- is increasingly impacting nonprofit fundraisers in no small measure.

Perhaps, you’re wondering how this sort of system is different from Paypal or your mobile banking app. Of course, on the surface, they certainly appear to serve the same use cases, such as making purchases, paying one’s bill, and more. But beneath, there exists a sizable difference. One unique feature of cryptocurrency is that it operates on a decentralized ecosystem known as blockchain technology. Put simply; no central body can change or affect how transactions are done on the blockchain technology without an overwhelming consensus reached by the users. Moreso, the decentralization of cryptocurrency networks makes them highly resistant to attack or censorship by anybody.

Cryptocurrencies are essential to nonprofit fundraising because of their many capabilities. Plus, they are always functional 24/7 to allow for the seamless transfer of value across the globe without any restriction and the intervention of intermediaries. This is why we refer this digital tool to nonprofit organizations to leverage in the conduct of their fundraisers, most especially in virtual fundraising, as anyone with an internet connection can comfortably send funds irrespective of geographic location.

The Capability of Cryptocurrency for Nonprofits Fundraising

The rate at which cryptocurrency nonprofit philanthropy accelerates is extreme as many nonprofit organizations realize a big market in the crypto space. The Crypto market is estimated to be $3 trillion, with the number of adopters currently reaching a record high of 300 million and continually doubling each year. Today, it has become increasingly obvious that cryptocurrency donors constitute many nonprofit organizations. Nonprofits that want to maximize revenue streams should also adopt this digital currency that effectively promotes fundraisers.

Cryptocurrency, an Opportunity for Nonprofits

There are numerous benefits of cryptocurrency philanthropy for nonprofits. For instance, for U.S. donors, cryptocurrency donation for nonprofits is a non-taxable event; as a result, no capital gains tax is due. In addition, using cryptocurrency for nonprofit fundraising makes it possible for international transactions to be done in a few minutes and for a nominal cost, unlike the traditional approach that takes days to complete with huge attendant fees. Furthermore, the advent of digital currency has created a new category of donors, those of the new younger generations, thereby expanding the nonprofit landscape. Moreso, the use of cryptocurrency for nonprofit fundraising also gives room for anonymous donations. So donors prefer to remain anonymous while making a donation; digital currency makes it possible for their identity to remain secret.

Conclusion

The use of digital currency for nonprofit fundraising is increasingly helping many nonprofits to maximize revenue. However, nonprofits that fail to leverage cryptocurrency to generate funding are leaving more on the table and undoubtedly bear the brunt of very limited funds for the execution of projects.

 However, nonprofits can stay while using cryptocurrency for fundraising by using well-known platforms like Coinbase, Binance and more. Plus, nonprofits should hire someone who has experience with cryptocurrency donation and regulations.

Then again, there are inherent risks in using cryptocurrency for fundraising. Cryptocurrency is highly volatile and speculative, and it’s essential you understand the risk before starting cryptocurrency fundraising. In other words, unexpected changes in the market sentiment cause sudden sharp price action and can quickly drop thousands of dollars in value. 

However, there are a handful of relatively stable coins over the years, including Bitcoin, Ethereum, Litecoin, USDT, and more. You should ensure you fully understand the risk associated with cryptocurrency before diving into using it for fundraising. We recommend that you seek professional advice before deciding whether to start or not.

Learn More About Pat Duffy

I would like to thank Pat Duffy From The Giving Block for coming on today’s podcast. If you like today’s podcast, please feel free to share it with a friend and also subscribe to your favourite podcasting app. If you liked today’s podcast please give us a review on your podcasting app to help us get the word out, and of course, if you are looking for a Line of Credit for your nonprofit, you can call us at 862-207-4118 or visit our website at nonprofitmbapodcast.com.

Learn More About Stephen Halasnik, From Financing Solutions

Stephen Halasnik is the host of the popular, The Nonprofit MBA Podcast. The Nonprofit MBA podcast’s purpose is to help nonprofit leaders. Stephen is the Co-founder and Managing Partner of Financing Solutions, a leading provider of loans for nonprofits in the form of Lines of Credit to nonprofits. Stephen is a best-selling Amazon author and is considered a leading authority on building great, purpose-driven businesses. Stephen lives in New Jersey with his wife, Gina. Mr Halasnik’s number one purpose is raising his two boys, Michael and Maxwell, to be good men.

10% of profits from Financing Solutions is donated to charity.