Alex Wilson and Pat Duffy are the founders of The Giving Block, a business focused on helping nonprofits accept cryptocurrency donations.
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What comes to your mind when you hear the word “cryptocurrency”? I know that, for me, that word meant little more than intangible money, but after getting to know more about it, I can tell you that cryptocurrency concerns us philanthropists and that it is already shifting the game in our community. The world and the way people are handling their money are changing. Most importantly, the way they donate to charity is changing too.
Although Bitcoin and other cryptocurrencies have been around for a while now, it’s only recently that nonprofits have really acknowledged their existence almost by necessity. At the beginning of 2021, the cryptocurrency market hit an all-time high exceeding $1 trillion for the first time according to the World Economic Forum. This community of users is not only growing incredibly fast, but it is also beginning to shift its attention towards charity-giving.
The problem with Crypto funds
Maybe the most attractive asset for the millions of people who own cryptocurrency to donate (besides its efficiency) is the tax incentive. Similar to stock donations, the IRS treats cryptocurrency as property, therefore donations of this kind are not liable for capital gains taxes and can be directly transferred to nonprofits. Even more so, donors can get a receipt for their donations and get it written off their own taxes. There is only one problem, not all charities are ready to take crypto funds despite all the advantages this type of currency has for both the donor and the institutions.
Fortunately, there are people already addressing this issue and helping charities change not only the way they take funds, but also adapting their donor acquisition strategies to a younger audience.
The donors of the future
Alex Wilson and Pat Duffy are the founders of The Giving Block, a business focused on helping nonprofits accept cryptocurrency donations. The Giving Block was founded in 2018 after seeing hundreds of millions of dollars in Bitcoin being donated to the few nonprofits that were equipped to accept those donations. Alex’s background is in management consulting where he worked with Fortune 500 companies to develop strategies around emerging technologies like AI, IoT, blockchain, and cryptocurrency. Pat Duffy, began as a federal consultant for pharmaceutical companies, focused on collaboration with nonprofits. He then shifted to the nonprofit sector where he worked at the Lupus Foundation of America, focusing on executive leadership and fundraising.
Now, thanks to The Giving Block, hundreds of nonprofits have integrated crypto solutions and now can access this new pool of donors and, on the other side, the crypto community can easily donate to the more than 100 nonprofits suited to take their donations.
While cryptocurrency may seem complicated and only for the tech-savvy, it has unexpectedly become a huge advantage for some charities and definitely will be a must-have for nonprofits in the future. But money aside, It has also brought to my attention the fact that there is still a long way for the philanthropic world to successfully adapt to Millennials and Gen Z. It’s time to either jump into new strategies or miss out on giant opportunities (and donations).
- (6:18) – The Giving Block’s story and why it is important to help nonprofits take cryptocurrency.
- (9:35) – Bitcoin 101: Exactly how big is crypto and why it is the perfect currency for donations.
- (15:24) – Be an option: There are a hundred million people who are willing to donate in crypto if you are prepared to take it.
- (18:54) – Can cryptocurrency introduce us to a new generation of donors? Bitcoin Tuesday and other strategies to engage with a younger audience.
- (22:31) – Pat’s and Alex’s view on community and the importance of building bonds between nonprofits and the crypto world.
- (28:43) – Take action! The first steps you should take to understand crypto as a philanthropist.
- (33:05) – How crypto can help with donor retention and the awesome ripple that it is creating through nonprofits.
Quick hits: Why Crypto for Nonprofits?
- 101,000,000 cryptocurrency users which is more than Venmo or Cash App
- $300 million dollars are donated in cryptocurrencies like Bitcoin each year
- $1 trillion dollars in crypto as of 2021
- Tax Efficient (like stocks)
- Diversify revenue with young crypto donors
- PayPal, Cash App, and other mainstream adoption
- Quickly becoming the preferred way for millennials and Gen-Zs to invest
- The trend is only going to grow! Take action!
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