Exploring Cryptocurrency: Introducing New Giving Methods to Your Nonprofit
0 likes433 views
This document discusses how nonprofits can explore cryptocurrency fundraising opportunities. It covers how major gift demographics are changing with more millennial donors and appreciated assets like cryptocurrency. It recommends adapting donor relations to accept cryptocurrency gifts through secure third parties. The document defines cryptocurrency and blockchain technology, discusses targeting existing crypto donors, and reviews options for crypto fundraising through self-custody, exchanges, or donation platforms. The overall message is that nonprofits can tap into cryptocurrency donors by implementing a professional and secure acceptance solution.
Exploring Cryptocurrency: Introducing New Giving Methods to Your Nonprofit
- 1. Exploring Cryptocurrency: Introducing New Giving Methods to Your Nonprofit Presented by: CampaignCounsel.org Engiven
- 2. Presenter Backgrounds Energetic, efficient staff located across the US Conducted over 80 capital campaign planning studies Helped clients raise over $200M Carlyn Schulzke, Consultant and Systems and Information Director Matt Hayes, Co-Founder and COO Dedicated to crypto-enabling the NPO community Focused on providing safe, simple, and secure solution Leadership with strong history of developing tech solution for NPOs
- 3. Agenda and Learning Objectives Changes in major gift ($25K+) demographics Adaptations in donor relations Learn about Crypto donors and Crypto fundraising resources Understand how your nonprofit can accept Crypto in safe, simple and secure environments
- 4. Major-gift Demographic Changes Pareto Principle is getting more pronounced 80/20 to 85/15 or greater Appreciated assets becoming more common major-gift resource Stocks, bonds, land and… crypto! Major-gift prospects stretching down into Millennials (1981-2000) They are making up a larger percentage of workforce and wealth Grew up with computers and 24/7 worldview Crypto owners span generations https://www.forbes.com/sites/forbesnonprofitcouncil/2021/06/18/how-american-philanthropy-is-rapidly-changing- and-how-npos-can-prepare
- 5. Adapt Donor Relations Expand your cultivation toolkit Trust remains central Build relationships with the donor and/or their advisors and managers Accept that solicitations may occur via a third party Thorough and transparent information Convenient pathways that are simple, safe and secure
- 6. What does a bitcoin look like? …and other questions you were afraid to ask. Demystifying the Vernacular Bitcoin is a Cryptocurrency. Cryptocurrency is a Blockchain technology.
- 7. Blockchain Technology Family Blockchain Decentralized Finance (DeFi) Health Care Cryptocurrency Bitcoin ETH Dogecoin Litecoin 7000+ others Voting Real Estate
- 8. Bitcoin • The first and largest cryptocurrency. • Invented / deployed in 2009 by an anonymous person or persons named Satoshi Nakamoto. • In 2010 the first transaction goods were purchased using BTC. • Overall supply limited to 21M BTC. • Last BTC will be minted in 2140.
- 9. Other Cryptocurrency Cryptocurrency is a fungible, digital asset that acts as a store of value and a medium of exchange. Definitive ownership records are stored on a blockchain based ledger.
- 10. Crypto Donors Are they unicorns or do they live among us? Average donation on the Engiven platform is >$5,000 Average number of gifts per month for active non-profits is <2 Demographic Data – Gemini 2021 Study 14% of US population owns crypto 74% are men The “average” cryptocurrency owner is a 38-year-old male making approximately $111k a year.
- 11. Targeting Crypto Donors Who already exists within your database? How do you target them? Why are they becoming philanthropic? Tax Advantage based on IRS classification of crypto as property.
- 12. Crypto fundraising Choose a methodology Self Custody via Hardware (Trezor, Ledger, etc) Security and safety is responsibility of organization Can be ‘lost’ / Can’t be ‘hacked’ No donor management or receipting High degree of crypto savvy needed. Wallet is a ‘bearer’ instrument. Direct Exchange (Coinbase, Kraken, etc) Low fees No donor management or receipting Can take months to establish account High degree of crypto savvy needed as well as board approved asset management policy SaaS Solution (Engiven, etc) Donor management platform Instant USD Fees
- 13. Crypto Fundraising Same song, different tune Define and implement a professional solution Communicate that you have a simple, safe, and secure opportunity Do the basic blocking and tackling of development Crypto is not a magic bullet but can be new stream of revenue
- 15. Hardware Wallets