If you are a nonprofit organization that is looking to raise funds or increase your donations, not accepting crypto gifts could be holding you back. With the global cryptocurrency market currently worth $1.67 trillion, accepting crypto gifts gives you access to a huge market of potential donors. While we’ve previously discussed the tax benefits for individuals when donating crypto currency, let’s now touch on how nonprofits can accept crypto gifts via various platforms. In order for a nonprofit to accept cryptocurrency as a gift, they will need to open an account with a platform that allows individuals to donate their cryptocurrency to them. Below we discuss three different platforms that nonprofits can use to accept crypto gifts and the benefits of each.
Engiven is a platform that allows its users (nonprofits) to accept and liquidate cryptocurrency assets via donation. There are no set up or annual fees, but they do charge a 4% fee to convert cryptocurrencies to USD. The platform offers support to manage giving campaigns via your organization's website with a customized widget. Engiven also provides nonprofits with an easy and customizable donation form for their donors, along with a safe and secure experience. Nonprofits will love the technical support provided by the platform should they have any questions or run into any issues.
The Giving Block
The Giving Block is another cryptocurrency gifting platform where nonprofit organizations can set up an account to accept donations. The account set up process is easy and free, with no annual fees, although the company does state that they charge for some services that will be detailed before you use them. The company provides technical and fundraising support to their registered nonprofits, along with marketing tools and opportunities to be a part of their massive giving campaigns. Additionally, The Giving Block is the number one crypto currency donation site for individuals, so having a presence on the site can help raise awareness to your organization and ensure you’ll be found when someone goes to donate.
BitPay’s platform is very popular for individuals and businesses alike to spend and accept Bitcoin, which is the most popular cryptocurrency. The platform can also be used by nonprofits to accept Bitcoin crypto gift donations. BitPay helps its nonprofit users create a widget to put directly on their website for crypto donations, while they handle the backend processing.They also offer hosted donation pages for fundraising campaigns or general giving. BitPay charges merchants a 1% processing fee, so nonprofits will want to consider if the platform's tools and reach outweigh the cost of using it.
No matter which platform you use to accept crypto donations, we recommend you work with a tax planner who specializes in the benefits of accepting cryptocurrency donations. Each platform we’ve discussed will allow you to liquidate cryptocurrencies immediately or hold the funds as NFTs, and a tax planner can help you determine which will be more advantageous for your organization. If you have any questions, contact us or check out our other blogs and FAQs.
Randy Tarpey CPA