What is cryptocurrency? It is digital currency which transactions are verified and records maintained by a decentralized system using cryptography, rather than a centralized authority. Got that? You probably don’t really get it. Most haven’t, though millions have and are investing in it.
Here is what you need to understand. There are some donors who are using cryptocurrency to make their donations to nonprofit organizations. That’s right, donors are not using their cash, credit card or checkbook. They are using Bitcoin, Ethereum and Litecoin to make their donations. What is their advantage and is there an advantage for your organization or school to accept cryptocurrency?
Maybe the first thing for a nonprofit to consider is should you accept a donation in cryptocurrency? One advantage may be that this is a new opportunity to collect new revenue from a donor. There is a set up that must be in place to accept cryptocurrency and transfer funds to your account. More information regarding cryptocurrency will come from a knowledgable CPA and legal counselor.
Cryptocurrency has been in existence for thirteen years now and its popularity is growing. Nonprofits should start looking into the possibility to receiving a cryptocurrency donation and evaluate if it is beneficial for acceptance.