Finding and building relationships with cryptocurrency and stock donors may not be as difficult as you think. We encourage you to start in the most obvious places when you begin to look.
A study done in 2021 found that 22% of the US population owns crypto. Further data shows that 4% of that group sits on significant capital gains. Over 60% of the US population owns stock.
With this in mind, a percentage of your current donor base may have the ability to give a significant amount of crypto and stock. Below are five tips for capitalizing on that opportunity.
1. Tell your donors
Part of your current donor base likely can give crypto or stock. You may not know who, but start with your current donors. Let them know through email that you now accept crypto and stock donations. You don't have to understand all the nuances of cryptocurrencies or the stock market to accept them. Likely, if your donors own crypto or stock, they know about it already and don't need an education from you.
2. Be ready for more meaningful conversations
The landscape of philanthropy is changing, and the foundations of finance & tech are subtly shifting. On top of that, the pandemic has called most of us to reassess our priorities, and many Interactions with donors have become deeper and more meaningful. The time to capitalize on these shifts is now. To begin these conversations, you don't have to be a crypto or stock expert. Simply open the door, lean on Engiven, and begin facilitating the open conversation.
3. Give them information about the tax breaks when donating crypto and stocks
In 2021, cryptocurrency reached a tipping point, evolving from what many considered a niche investment into a global, established asset class. Because crypto and stock are both regarded as assets by the US government, there are tax breaks when donating them. In short, donors who give crypto or stock do not have to pay taxes on that asset, no matter the gains they have made. Donating that entire asset (all profits included) is a tax write-off for the donor. The nonprofit then receives the whole amount from the liquidated crypto or stock tax-free. Everyone wins. Donating long-term appreciated assets can also unlock additional funds for charities. There is massive potential for savings for donors and nonprofits on transaction fees embedded in traditional financial services platforms.
4. Social media matters
Letting your donors and followers know that you have decided to accept crypto and stock donations shows that you are aware of the changing landscape of giving. This sets you apart as a cutting-edge organization and appeals to crypto and stock donors. On average, the pool of cryptocurrency users is much younger than traditional donors. Over 60% of cryptocurrency users are under the age of 40. Using social media platforms with the correct hashtags and campaigns could encourage current donors to give crypto and reach new, younger donors looking for charities that align with their tech values and investments.
5. Consider asking at year-end
If you are fundraising, you already know that over 50% of donations happen in the last quarter of the year. As people consider taxes, this is a good time to reach out and give them information about donating crypto or stock and the associated tax benefits. Building a sub-campaign around Giving Tuesday focused on crypto or stock, highlighting a specific giving area for the crypto or stock enthusiast that could yield crypto or stock donations.
These are five simple and rather apparent tips. But like I said, looking in the clearest places to begin is logical and practical. Some of these donors could very well be within reach.
Engiven offers more tips and instructions to premium customers in our 90-day success guide. If you're interested in this, you're welcome to send us a message in the chat button on the bottom-right-hand side of your screen. If you're new to Engiven, here's a link to sign up today.