Most of us have heard of cryptocurrency. From the mainstay Bitcoin to Ethereum to the viral currency Dogecoin, crypto has been everywhere in the news for the last few years.
Nonetheless, most people don’t know much about cryptocurrency and how it works—including fundraisers.
But it doesn’t have to be this way! Crypto is not nearly as complicated as it sounds, and nonprofits and charities would be remiss to ignore this new giving channel.
Vice President of Sales for GivingDNA/Pursuant Dawn Galasso sat down with the folks from The Responsive Weekly. She talked about potential crypto donors, how organizations can easily accept cryptocurrency, and the complications of stewarding crypto donors.
Good News: Crypto Donors are Wealthier
One reason charities should not sleep on the crypto boom is that crypto donors are a wealthier-than-average demographic. According to Dawn, potential crypto donors are often:
Younger men (under age 45)
High earners with salaries of $110,000+
If organizations take a look at their existing donor base, they can find people in this demographic who are already known to be philanthropic. And individuals who are interested in donating crypto are likely to have a strong giving capacity.
Accepting Crypto Doesn’t Have to be Difficult
Another intimidating factor that might make fundraisers shy away from soliciting and receiving cryptocurrency gifts is needing to learn how to accept them. But like most things, organizations may use one of many third-party solutions to handle the crypto part of the currency for you. By the time the funds make it to you, they are no different than any cash or credit card gift. An excellent way to think about this is by comparing accepting crypto to accepting gifts of stock. Just like your operation doesn’t have to become a brokerage firm to accept stock, it also doesn’t require being fluent in crypto to benefit from these donations.
Potential Crypto Pitfall: Anonymous Gifts
One roadblock that fundraisers might run into is that crypto donors are more likely to be anonymous. This poses a challenge when it comes to stewarding donors and nurturing future gifts. The best way to combat this is to give careful thought to ways to encourage anonymous givers to feel comfortable enough with your organization, eventually, to reveal themselves.
Listen to The Responsive Weekly episode today to learn more detailed information about cryptocurrency donations and hear the full conversation.