Over the past three years, more and more non-profit organizations have started accepting donations in cryptocurrency. The COVID-19 pandemic has pushed this trend further than ever before, according to Alex Wilson, co-founder of The Giving Block, a cryptocurrency donation portal.
Pandemic prevention work began to intensify in March 2020, which has resulted in business closures and financial disruption for many. Both companies and nonprofits suffered significant losses in revenue after the virus spread.
Interestingly, over the past six months, COVID has become a somewhat dangerous catalyst for non-profit organizations adopting cryptocurrency, as many of them are looking for different ways to compensate for lost income, in addition to diversifying their income into new things like cryptocurrency. Wilson told Cointelegraph in an interview.
Despite supporting COVID-19, a number of nonprofits initially began accepting blockchain assets in the midst of the cheering bull market for cryptocurrencies in 2017. “Many people are fundamentally looking for ways to offset their capital gains tax, particularly in United States of America Saeed Wilson continued:
“One of those ways was to donate cryptocurrency to charity, except that I noticed that people wanted to donate to nonprofits, but most of them [non-profit organizations] had no idea how to accept the cryptocurrency.”
To solve this problem, Wilson and his friend Pat Duffy combined their skills and resources to create a practical cryptocurrency that leads to consolidation. “These tax credits were really the driving trend or driving force behind it,” Wilson said.
Wilson explained, “We didn’t really start the company until last year , when actually we opened it publicly, and now we work with around 100 different nonprofits.”
Wilson said the donations from cryptocurrency act as a gateway to a separate, untapped market for potential backers. “Most non-profit organizations tend to have older donors, and they are looking for ways to connect with younger donors, and start building long-term relationships with younger donors, and coding was one of those ways,” he explained.
Wilson also said the company is doing more than just offering a new payment method to its supporters:
“The cool thing about cryptocurrency donations is that they are basically new donors to them, so they don’t understand other existing forms of donation. This is a completely new source of income for them.”
There are a number of payment solutions in the crypto room, and some convert digital assets into the recipient’s pre-defined national currency at the time of payment. When the company integrates with The Giving Block, they can choose whether to keep the donation in cryptocurrency or convert it to more traditional official currency. According to Wilson, “90% of our customers choose to auto-transfer because they are still a little concerned about volatility.”