It has been all headlines for blockchain and crypto for the past ten years and users are now delving into what the industry can do for them. The technology has come at a time when the charitable organizations badly need the service. Nonprofits have battled with fundraising and crypto appears to offer the best solutions.
The way nonprofits accept donations is changing very fast; the expansion of the audience has been amplified by crypto. It is now easy to send money anywhere in the world within minutes. What’s more, the digital assets keep appreciating and you never know when they double. Here are some benefits of accepting donations using cryptocurrencies.
Cryptocurrencies are not geo-restricted giving organizations contact more crypto users compared to fiat. With digital coins, one does not need to pay any exchange fees, dealing with third parties or changing from one currency to another. This gives the donation recipient to concentrate on serving the target population.
Transaction rates for crypto are standards and not affected by low or high-value currencies. With the virtual currencies, there are not cross border charges and this makes it ideal for charitable causes. Fiat donations attract between 1 and 7.5 percent in exchange fees which should benefit the affected communities.
Traditional money transfers are expensive and take days to process. These also come with high charges with any third parties involved. Donor fund is meant for the needy and adding high transaction fees is an added burden to the donors and blockchain is paving way for cheaper transactions.
Crypto transactions do not wait for verification and clearance like with the banks. Some of these funds are meant for emergencies and sending and receiving it on time saves many lives. Blockchain offers a lot of transparency and does not fall under the corrupt arms government officials or politically influenced.
Blockchain transactions are immutable and cannot be edited. Once transactions are completed, they cannot be reversed. However, the details are stored in a digital ledger in a decentralized environment. Issues of misuse or funds ending up in scam charities do not arise.
Funds can easily be tracked using the technology and this makes it easy to know how they are used. All users in the blockchain have access to the funds’ usage and can monitor and note any misuses along the chain.
This might be risky given the volatility of the digital money market but sit is a venture charity can explore. Holding on to funds can yield dividends in the long run. Targeting appreciating coins and assets is the best way to turn donations into investments.
Charities that opt to take risks stand a chance of gaining if the coin they invest in appreciates over time. At the same time, due diligence should prevail as digital currencies also depreciate in value as well. However, it is better to look at the low fees when accepting donations in crypto compared to fiat.
As the crypto space continues to grow, non-profits and charitable organizations are the emerging markets that major crypto players should explore and save these organizations from being exploited by banks and other market stakeholders.
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