With the rise of cryptocurrencies and blockchain technology, a new avenue of charitable giving is emerging. Cryptocurrency donations, which reached $500M in 2021, present nonprofits with a unique opportunity to engage a new generation of donors and diversify their revenue streams. Crypto donors, who are largely millennials, give 82x more than cash donors with an average of $10,500 per donation. This guide is designed to help nonprofits leverage the power of cryptocurrencies to drive donations and advance their missions.
1. Understand the Basics
First, it's crucial for your organization to understand what cryptocurrencies are and how they function. Cryptocurrencies like Bitcoin and Ethereum are digital currencies that use cryptography for security and operate independently of traditional banking systems. Learning about blockchain technology, which underlies most cryptocurrencies and provides a transparent and immutable ledger of transactions, is also beneficial.
Claim nonprofit page on Givepact
Optimize nonprofit page on Givepact
2. Add Crypto Giving to Your Website
Add your Givepact crypto giving page to your website. Typically, in the donate section of your website and on the ways to give page. You can also upload this image to your website footer to indicate your organization is a Givepact partner.
3. Share the Good News — Let the World Know!
Create a blog post, email, and social posts announcing that you’ll be accepting crypto donations. We’ve created a template for you here that you can adapt to your audience.
Social media and email campaigns can be effective in promoting your new ability to accept crypto donations. Share stories about how crypto donations can make a difference for your cause and invite your supporters to be part of this innovative form of giving.
Donate crypto in a few simple steps
4. Target Crypto-Friendly Donation Keywords With AdGrants
If you haven’t already, sign up to Google’s free ad grants for nonprofits, which provides $10,000/month in search advertising credits for any U.S. nonprofit. Within your AdGrants account, target keywords like “donate crypto to [you nonprofit name]” to make sure that your donation landing page, which links to Givepact, shows up high in search results.
5. Reward Donors
To encourage cryptocurrency donations, consider rewarding your donors. With Givepact, donors will soon receive a unique Proof of Donation NFT after their first donation. This dynamic NFT, which provides an on-chain record of their giving history, not only incentivizes giving but also serves to engage donors in the ongoing mission of your organization.
Related: Is Crypto Bad for the Environment?
6. Inform Your Team
Ensure that your team understands how cryptocurrency donations work so they can confidently explain the process and its benefits to potential donors. The more knowledgeable your team is, the more effective they'll be in promoting this new form of giving.
7. Stay on top of the latest news and innovations in Web 3
8. Join the Givepact community on Slack
We have a community of over 70 nonprofit leaders and crypto experts from around the world in our Slack community to help and collaborate with you. Join us on Slack.
9. Highlight the Tax Benefits:
Remind your supporters of the potential tax benefits associated with crypto donations. Given that the IRS treats cryptocurrency as property, donors could potentially avoid capital gains tax and deduct the donation on their taxes.
10. Partner with Crypto Influencers:
Reach out to influencers in the cryptocurrency world for partnerships. They can help raise awareness about your cause and your acceptance of crypto donations to their audience. These influencers can also provide credibility and validation for your organization in the crypto community.
11. Organize Crypto-Specific Fundraising Events:
Host online events such as webinars or live streams targeted at the crypto community. Use these events to educate about your cause, highlight the impact of donations, and encourage crypto donations.
12. Create Crypto-Themed Campaigns:
Develop campaigns with themes that resonate with the crypto community. These could be related to decentralization, digital innovation, or financial freedom. An emotionally engaging campaign that aligns with the interests of the crypto community can boost your crypto donations.
13. Recognize Crypto Donors:
Acknowledge and appreciate your crypto donors publicly, just as you would with traditional donors. This can be through thank you emails, social media shout-outs, or even featuring them on your website. Twitter remains a relevant social media platform for the crypto community.
14. Share Stories of Impact:
Showcase the impact of crypto donations on your mission. Tell compelling stories of how these donations are making a difference. This not only highlights the value of each contribution but also encourages others to donate.
15. Provide Updates on Crypto Market Trends:
Keep your audience informed about relevant crypto market trends and news. By establishing yourself as a knowledgeable source, you can build credibility and trust with your donors.
Crypto Philanthropy is Here to Stay
Accepting cryptocurrency donations may seem like a leap into the unknown, but it's a leap that can bring great rewards. By harnessing the power of cryptocurrencies, your nonprofit can tap into a new demographic of donors, potentially increasing your funding and furthering your mission.
Embracing the future of charitable giving, Givepact provides the necessary tools and support for nonprofits to easily accept cryptocurrency donations and convert them into cash. Join us as we redefine philanthropy in the digital age.