Donating with cryptocurrency is an emerging trend. With a lot of information (and hype) out there about cryptocurrency, it can be confusing and even a bit scary when considering whether your charity should start receiving cryptocurrency donations. On today’s episode, two experts in this field, Anne Connelly and Jason Shim, share with us how to get started with cryptocurrency fundraising.
Quick facts about cryptocurrency donations
You can sell the donated crypto currency right away, or you can hold on to it and sell it to harness a higher profit. Note that cryptocurrency is more volatile than stocks or bonds but charities can leverage on the volatility.
You issue a tax receipt for cryptocurrency donations at fair market value at the time of donation. Crypto currency donations are currently considered as in-kind donations in Canada.
You’re not the first charity to do this. There are Canadian charities that have already started to accept cryptocurrency donations. Pathway to Education Canada, Simon Fraser University, and more.
Anne and Jason’s tips on getting started with cryptocurrency donation
Set up your system to receive cryptocurrency. Start with choosing a platform that can receive cryptocurrency and embedding the system to your website. After that, think about what are other ways in your communication channels and touchpoints that you can set up the receiving of crypto donation and promote it.
Reframe about the way you think about who can give and the way they give. Crypto donors are often young and digital minded. They may behave and think quite differently than traditional donors.
Evaluate perceived risk versus actual risk. Don’t get caught up in sensationalism in media headlines. Do your research. Try buying one bitcoin on your own to see what the process is like.
Favourite Quotes from Today’s Episode
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“This is something that every charity is going to have in the next 10 years. When you look back on the adoption of credit cards, the charitable sector also had people who were really afraid of that at first. With Bitcoin right now, people are nervous about it but I guarantee within the next 10 years if your donor database doesn't integrate crypto currency donations, you'll be finding a new database.”
“Here’s a really amazing window of opportunity right now, where if you build it they will come. And that's because there's so few charities out there that actually do accept cryptocurrency donations. With wealthy crypto donors, their first step in finding a charity to donate to is literally googling charity that accepts Bitcoin and then picking from five or six that are on the list.”
Resources from this Episode