Despite the explosion of interest in cryptocurrencies, many businesses and organizations still have not taken the plunge both in using and accepting this new form of currency. The volatility, newness and seeming complexity of getting started are real barriers to entering this new market. However, many people have made large sums of money on the expansion and growth of the cryptocurrency market and may be good donor prospects for your charity or foundation. Let’s look at some reasons why:
Reason #1 – Cryptocurrency advocates believe and want to solve challenging problems. They are idealists and want to right the societal wrongs facing us all. They are big-hearted, want to be inclusive and desire to give back.
Reason #2 – These coins have appreciated a lot and I’m not talking 20-30%. We have seen and heard of people making 3,000% gains on some of these cryptocurrencies. Based off of US tax law targeting cryptocurrency, when those gains are transferred into a new coin it immediately recognizes that gain and tax to the person holding them. If people were easily able to transfer those gains to a charity or foundation and receive a tax deduction that would be extremely beneficial for all parties involved.
Reason #3 – Cryptocurrency is hot and trendy right now. That can often be a double-edged sword, but cryptocurrency garners lots of attention and may be a way to attract new interest in your charitable efforts as an organization.
Reason #4 – Cryptocurrency coins, when received, can easily be converted to cash within a matter of minutes once you have established an account. You can take the donation in cryptocurrency and have that deposited into your foundation or charity bank account to use for operations.
Reason #5 – The first commercial transaction in Bitcoin took place in 2010 when $28 in Bitcoin was paid for two Papa John’s pizzas. That bitcoin, if Papa John’s were to have held them today, would be worth over $20,000,000.00. As an organization, what if you received a donation that 8 years later could change the organization forever? I know many foundations and charities have investment accounts and reserves. It is our feeling that cryptocurrency could be a part of that equation.
If you want more information on how or why to accept payment or charitable donations in cryptocurrency please let us know.