Non-profit entities may be taking advantage of an untapped market of supporters by simply allowing donations in cryptomoedas.
In the past three years, a growing number of non-profit organizations have begun to accept donations in cryptomoks. According to Alex Wilson, co-founder of The Giving Block, the OVID-19 pandemic has taken this trend further than ever.
Pandemic prevention measures began to accelerate in March 2020, resulting in business closures and economic turmoil for many. Companies and non-profits faced remarkable revenue losses after the virus spread.
„Interestingly, in the last six months or so, COVID has been a major catalyst for non-profit organizations to accept cryptomorphs, because many of them are looking for different ways to offset the loss of revenue, but also to diversify their revenue into new things like cryptomorphs,“ Wilson told the Cointelegraph in an interview.
Although this movement is leveraged by COVID-19, a number of non-profit organizations had already begun to accept blockchain assets amidst the high euphoric market for cryptomoks in 2017. „Many people were essentially looking for ways to offset their taxes on capital gains, especially in the United States,“ Wilson said, continuing:
„One of those ways was to donate cryptomorphs to charities, except that I realized that people wanted to donate to non-profit organizations, but most of them [the non-profit organizations] had no idea how to accept cryptomorphs.“
To solve this problem, Wilson and his friend Pat Duffy combined their skill and resources to build a convenient cryptomede access ramp. „That kind of tax benefit was really a driving trend behind it, or a driving motivation behind it,“ Wilson said.
„We really didn’t launch the company until last year , that’s really when we launched it publicly and now we work with about 100 different non-profit organizations,“ Wilson explained.
The donations in cryptomoedas act as a gateway to a separate and untapped market of potential supporters, Wilson said. He explained that „Most nonprofits tend to have older donors and are looking for ways to connect with younger donors, start building longer relationships with younger donors, and cryptomoks have been one such way.
Wilson also said the company does more than simply provide a new method of payment for the company’s supporters:
„One nice thing about donations in cryptomoks is that most of them are from completely new donors to them, so they are not cannibalizing any of the other existing forms of donations. This is a totally new revenue stream for them“.
There are several payment solutions in the crypto code review space, some of which convert digital assets into a predetermined national currency of the recipient at the time of payment. When a company joins The Giving Block, it can choose whether to keep its donation in cryptomime or convert it into a more traditional fiduciary currency. According to Wilson, „90% of our customers choose automatic conversion because they are still a little concerned about volatility“.