Since being introduced in 2009, cryptocurrency has been confusing to most people. However thirteen years later millions of people have jumped into it. It is real? Or is it fake currency?
The fact is, there are donors who are now willing to make their donation to your organization by doing it through a cryptocurrency. What do you need to know about accepting cryptocurrency? Should you accept it? That answer is going to be made by your organization. However, if you do not know a single thing about cryptocurrency you may want to start looking into it if it arises for your organization. Currently, there are some very large nonprofit organizations who are accepting cryptocurrency. Presently, I am unaware of any local or regional organizations that are accepting it, but they could be out there.
There are many factors to weigh when making a decision to accept cryptocurrency. Possibly the primary concern is the huge sways in a day that cryptocurrency can swing in a soaring rise or a streaking fall. For example, on July 26th, 2022 Bitcoin, which is likely the most popular of the over 10,000 different cryptocurrencies, fell $405.00. The next day, July 27th it soared $747.40! It is a wild ride in both directions. Smooth sailing is not the cryptocurrency way. Before accepting cryptocurrency seek assistance from a CPA familiar with cryptocurrency and seek the same from legal counsel.
Whether you accept cryptocurrency or decide not to do so, you should become familiar with what cryptocurrency is and how it works. No one knows where cryptocurrency is headed but it is being offered by some donors so it is best to be educated on how your organization will handle that situation when it is offered to you in a donation.