Non-profit companies could open up a market for new donors if they start accepting cryptocurrencies.
In the last three years a growing number of non-profit organisations have started to accept cryptos. According to Alex Wilson, co-founder of the crypto donation solution The Giving Block, the COVID-19 pandemic has given new strength to this trend.
Preventive measures intensified in March, with the closure of business and economic turmoil for many. Both businesses and not-for-profit companies faced significant revenue losses once the virus began to circulate massively.
Wilson, during an interview with Cointelegraph, said:
„Interestingly, in the last six months or so, COVID has actually been a rather important catalyst for not-for-profit organisations that accept crypto, because many of them are looking for different ways to offset revenue losses and diversify revenues through new assets.
Despite the growth associated with COVID-19, a number of not-for-profit organisations had already started accepting blockchain assets during the 2017 bull market. Wilson explained:
„Many people were essentially looking for ways to offset their capital gains taxes, especially in the US. One such solution was to donate crypto to charity, too bad […] most of them [the nonprofits] had no idea how to accept them.
To solve this problem, Wilson and his friend Pat Duffy combined their expertise and resources to build a convenient way to accept crypto donations. According to Wilson, „that kind of tax benefit was actually the real trend that was driving it. We only officially launched the company last year and now we work with about 100 different non-profit organizations.
According to the executive, crypto donations act as a bridge to a different, as yet unexplored market of potential supporters. Wilson explained that „most nonprofits tend to have older donors and are thinking of ways to get in touch with younger people, build longer relationships with them, and accepting cryptos has been one of the systems used.
Wilson also said that the company is not just providing a new method of payment:
„One nice thing about crypto donations is that they are mostly completely new donors, so they are not cannibalizing other forms of existing donations. It’s a completely new revenue stream for them“.
There are several payment solutions in the crypto world, some of which convert the digital asset into the recipient’s chosen national currency at the time of payment. When a company decides to work with The Giving Block, it can choose whether it wants to keep its donation in crypto or convert it into a more traditional fiat currency. According to Wilson, „90 per cent of our customers choose automatic conversion, as they are still a little concerned about volatility.