In a previous blog post, we announced that Disability Advocates of Kent County now accepts donations in the form of cryptocurrency. However, it is worth discussing why this decision will benefit our organization.
Most nonprofit organizations do not accept cryptocurrency donations, although major charities such as American Cancer Society, Red Cross, UNICEF, Save the Children, and Rainforest Foundation have led the way. That trend may shift in the coming years as interest in cryptocurrency grows amongst a new generation of philanthropists.
Cryptocurrency may seem alien and unapproachable, but it is quickly gaining mainstream recognition. In fact, Dorothy A. Johnson Center for Philanthropy included cryptocurrency as one of its top 11 philanthropic trends for 2022.
Here are five reasons we decided to move forward with cryptocurrency donations.
All cryptocurrency transactions take place on the blockchain, which is a digital ledger of transactions distributed across a network of connected computer systems. Since all transactions are automatically tracked on blockchain, cryptocurrency is the most transparent way for users to transfer value.
The blockchain uses complex mathematical protections to protect transactions. This protects the user from hacking.
Ease of Use
Cryptocurrency transactions are faster than standard transactions, and they do not have a limit. They also do not have processing fees or rules associated with them like credit cards.
Support Donor-Centric Forms of Giving
Using cryptocurrency can be an effective way for donors to maximize their impact while limiting the tax burden on donors. Donors can receive tax deductions for giving with cryptocurrency while avoiding capital gains tax.
Engage New Philanthropists
Cryptocurrency is becoming a mainstream part of American life. According to the Pew Research Center, over 16 percent of Americans have used cryptocurrency. Over 83% of Millennial millionaires use cryptocurrency. It makes sense for us to engage this new generation in giving toward a great cause.