5 Tips for Gaining Donations Through Crypto

Non-profits often think they need to go and find new people, outside of their donor base to find crypto donations. Because they have never accepted crypto they think that maybe their donor base does not have any to give. 

Statistics show that currently, 15-20% of the population in the US owns crypto. Further data alludes to 4% of that population having the ability to give significant amounts of crypto to nonprofits.

With this in mind, it is entirely possible that a percentage of your current donor base has the ability to give a significant crypto donation. Below are 5 Tips for Gaining Crypto Donations. 

1. Tell your donors.

Part of your current donor base likely has the ability to give crypto. You may not know who, but start with your current donors. Let them know through email that you now accept crypto donations. You don’t have to understand all the nuances of cryptocurrencies to accept it, to let your donors know you accept it. Likely, if your donors own crypto they know about it already and don’t need an education from you. 

2. Be ready for more meaningful conversations.

The landscape of philanthropy is changing. The pandemic has called most of us to reassess our priorities. Interactions with donors have become deeper and more meaningful. You don’t have to know about crypto to acknowledge that things are changing. Acknowledging that helps open the door to relationships and crypto donations for your org.  

3. Give them information about the tax breaks when donating crypto.

In 2021, cryptocurrency reached a tipping point, evolving from what many considered a niche investment into a global, established asset class. Because crypto is considered an asset by the US government there are tax breaks when donating it. In short, if they give crypto they do not have to pay taxes on that asset, no matter the gains they have made. When they donate that entire asset (all gains included) it is a tax write-off for the donor. The non-profit then receives the entire amount from the liquidated crypto, tax-free. Everyone wins. Donating long-term appreciated assets directly can also unlock additional funds for charities, and there are potential savings for donors and nonprofits on transaction fees that are embedded in traditional financial services platforms.

4. Social media matters.

Letting your donors and followers know that you made the decision and have the ability to accept crypto donations shows that you are aware of the changing landscape of giving. This sets you apart as a cutting-edge organization and is appealing to crypto donors. The pool of cryptocurrency users is, on average, much younger than traditional donors. Over 60% of cryptocurrency users are under the age of 40. Using social media platforms with the correct hashtags and campaigns could not only encourage current donors to give crypto but can reach new, younger donors looking for charities that align with their tech values and investments. 

5. Consider asking at year-end.

If you are in fundraising you already know that over 50% of donations happen in the last quarter of the year. As people are considering taxes, this is a good time to reach out and give them information about donating crypto and the tax benefits associated. Building a sub-campaign around Giving Tuesday focused on crypto highlighting a specific giving area for the crypto enthusiast could yield crypto donations. 

There are so many ways to engage crypto donors. Engiven offers more tips and instructions to premium customers in our 90-day success guide. Sign up today