Key takeaways in this post:

  • Cryptocurrency is like digital money, and it’s becoming popular for donating to causes.
  • More charities accept cryptocurrency because it helps them reach younger and more generous donors.
  • People who donate cryptocurrency can save money on taxes, which is one reason they like giving this way.
  • Using cryptocurrency for donations can be risky because its value goes up and down a lot.
  • If your organization wants to accept cryptocurrency donations, let people know about it on your website and social media.

Even if you know little about digital currency, you’ve probably heard of it. About 300 million people worldwide use digital assets. In 2024, Wilmington Trust named bitcoin the best-performing asset class in seven out of the last 10 years. But in the other three years, it was much more volatile, as the worst-performing. Even so, it’s hard to see it going away. Consider it from the angle of philanthropy. Americans donated more than $2 billion in cryptocurrency as of January 2024. Here’s what healthcare marketers need to know about cryptocurrency donations.

First, let’s break down what we mean when we talk about crypto. Like the U.S. dollar, cryptocurrency is a medium of exchange.

The difference is it’s digital and uses encryption techniques to manage and transfer funds. Bitcoin is the most popular example.

Cryptocurrency uses a decentralized system. This means no central bank determines its supply.

Blockchain technology creates and stores cryptocurrency. It uses encryption to verify the transfer of funds.

These transfers become new blocks added to the existing blockchain. This creates a digital record of transactions.

Crypto donations are gaining in popularity at lightning speed. The 2024 numbers alone show this. In recent years, many top nonprofits began accepting crypto.

They include the following nonprofits:

To put the spike in context, consider this: Nonprofits raised $3.1 billion on Giving Tuesday 2022, a 15% increase from 2021.

One reason more charities are getting into digital asset donations is the desire to reach a new pool of donors. Crypto donors are, on average, younger, more often male and in a higher tax bracket than typical cash donors.

They also seem more generous, with crypto donors giving $10,500 per gift — about 10 times the average online cash donation.

Also, they seem more likely to support causes receiving attention online. For example, by the beginning of April 2022, crypto donors reading stories about the war in Ukraine on Twitter donated around $100 million to help.

The generosity of crypto donors and the rise of digital philanthropy may be due in large part to tax savings. For now, cryptocurrency donations in the United States avoid capital gains taxes.

That’s because the IRS designates crypto as property. It subjects it to the same rules as non-cash gifts, like stock or real estate. That means that donating crypto can save people more on taxes than making a cash donation.

It’s important to note that dealing in digital assets can come with risks. Today’s market alone is evidence of it.

The value of cryptocurrencies like Bitcoin goes up and down. Consider hiring an adviser to help navigate the high-risk, high-reward world of crypto giving.

The Giving Block, a crypto donation and fundraising platform, can also help. It works with charities to help them process digital asset donations.

When you’re ready to receive digital asset donations, here are three steps you can take to let people know.

1. Put it on your website and social pages.

Get the news out there! Add several places on your website where you accept crypto donations. That could include your main donation page, a “ways to give” page or a crypto-specific landing page.

Then, push the news out via your social accounts and email communications. You can include a mention in an existing campaign, for example, by adding a line or paragraph highlighting your news. (Don’t forget to include a link!)

2. Make sure you’re speaking to your target audience.

Remember the demographics of the average crypto donor. They are young, male, in a high tax bracket, generous, and motivated by online news.

Plan how to best reach them. For instance, they may answer phone calls less than older donors. Sending texts might be better.

But the best way to determine what works for this new donor class is simple: Ask them. They’ll tell you their preferred styles of communicating. And remember that what works for one may not work for all.

3. Don’t forget your existing base of donors.

Not everyone will want to donate this way, but many will want to hear about your new giving option. You can send a survey to gauge your donors’ interest. Then, follow up with targeted messages to those who respond in a positive way.

You can also highlight the tax incentives and potential for maximizing donations.

Even if most of your donors don’t use crypto, having it sets you apart. It shows your commitment to innovation.

Partner with WG Content’s writers and strategists to create content. Contact us to learn more about how we can support your foundation marketing and fundraising initiatives.

Editors’s note: This post was original published on June 22, 2022.

Cryptocurrency donations are donations made in the form of cryptocurrencies such as bitcoin. These types of donations can provide tax benefits for donors and allow organizations to maximize their donation potential.

Accepting cryptocurrency donations can help your organization stand out by showcasing your innovation and commitment to staying current with the latest technology trends. It can also attract new donors interested in using cryptocurrencies for charitable giving.

First, you need to choose a cryptocurrency wallet and set up an account. Next, you can add a donation button on your website or create a specific address for donors to send their donations to. You may also consider partnering with a cryptocurrency payment service provider for easier processing.

Want more insights on all things content?

Sign up for WG Content’s newsletter, Content Counts.

Count Counts WG Content Newsletter