Cryptocurrency is often hailed as the new frontier when it comes to nonprofit fundraising, and there is a good reason behind it. The rise of blockchain-based digital currencies can be attributed to a number of benefits that owning a digital wallet can bring to users. Aside from the fact that cryptocurrency is still a part of an emergency economic landscape that is welcomed by technological experts who are constantly working on its development, the amount of funds already present in the crypto space is tantalizing.
As of 2018, the market cap on cryptocurrency was nearly $417 billion. This is a lot of money that can be used for fundraising. Cryptocurrency is already seen as a viable way in which developing nations can combat income inequality and improve their economies. When it comes to nonprofits and fundraisers, this digital alternative brings more pros than cons.
Cryptocurrency transactions are faster, easier, and involve no intermediaries.
1. Transparency in donations
Any amount donated in the form of cryptocurrency is visible to the public. This is as the blockchain ledger can be accessed by anyone. Your nonprofit will no longer have to worry about building transparency as the process is already inherently present within the crypto space.
2. More money directly in the form of donations
Donations in the form of traditional currency take up more time and involve processing fees. By the time a donation actually reaches your nonprofit, the amount you get is often lower than the amount that was contributed. When it comes to cryptocurrencies, this is not an issue. There is no third party intermediary between you and your donor, there are no processing fees, and the amount that was donated is deposited straight to your digital wallet.
3. Tax benefits and incentives
Cryptocurrency is not considered as standard money, so it becomes easy for your nonprofit to write it off as a non-cash gift. Whereas when it comes to traditional donations, there are less incentives available, leading to a further decrease in the amount you have raised through your fundraiser.
Cryptocurrency exchanges are secure, becoming mainstream, and are popular among millennials.
4. International exchanges become easier
With cryptocurrency, especially through an online platform like BABB that already makes donations from anywhere in the world a reality for fundraising organizations, you can easily access donors from anywhere in the world. The great news is that these donations won’t have to go through financial reviews or exchange fees, and you always get the amount that was actually donated.
5. Anonymous donations
You can widen your donor base if you allow anonymous donors to contribute to your fundraiser. This is possible using cryptocurrency. At the same time, you can also create fields that a donor must complete before they can donate, in case you want to ensure that your contributions are coming in from people genuinely interested in your fundraiser.
6. Secure transactions
If you’re concerned about security, then there isn’t anything to worry about. The crypto space is designed to encourage secure transactions and technological experts are constantly improving upon the existing technology to better aid in developing secure storage, as well as in creating policies that are designed to cover any potential losses.
7. Reach out to a new crowd
A large number of people across the world already dabble in cryptocurrency, and if you venture into this space, your nonprofit will gain access to contributions from new donors across the world.
If you’re ready to open a new source of revenue for your nonprofit organization, then get the BABB app today. Servicing over 169 countries across the world, BABB makes it easy for you to utilize cryptocurrency towards making a real impact in the world.