[Guest Post] ‘90% of Millennials Prefer Bitcoin Over Gold’: Can you accept their donations?

Alex Wilson & Pat Duffy August 27, 2019, by Alex Wilson & Pat Duffy

This is a contributing post by Alex Wilson and Pat Duffy of The Giving Block

 

Over the last few years, we’ve all seen some dramatic shifts in the way millennials and Gen Zs interact with money - and donate. Apps like Venmo and CashApp beat out cash. Now Bitcoin is beating out gold. And, when they donate their Bitcoin or other cryptos directly to a nonprofit, they pay less taxes.

 

Why are millennials donating Bitcoin?

Hundreds of millions of dollars in Bitcoin has been donated to nonprofits. As the price of Bitcoin surged in 2017, so did donations. The reason? Taxes. In the United States, the IRS classifies cryptocurrencies as property, like stocks. That’s why donating crypto directly means you give more, and pay less taxes. 

Donate Crypto, lower taxes - In the United States, the IRS classifies cryptocurrencies as property. That means when you donate your crypto directly, you give more, and pay less taxes. It's that simple.

 

Why won’t millennials stop talking about Bitcoin?

Your millennial employees (and donors) talk about Bitcoin more than Justin Bieber, Kim Kardashian and most other prominent celebrities. 

Google Trend comparison between Kim Kardashian, Justin Bieber, Bitcoin viewing interest over time.

With younger generations like Millennials and Gen Z, nonprofits are finding that accepting cryptocurrency donations energizes marketing and branding efforts. 

According to Nate Geraci, president of the ETF Store, 90% of millennials prefer bitcoin over gold. 

“When we talk to our younger clients - we have a core gold allocation in our portfolios, and they’ll ask about that and say, ‘What about crypto?’ And if you talk to, primarily millennials, and ask them which they prefer, bitcoin or gold, it’s a landslide. It’s not even close, it’s like 90% prefer bitcoin.” [CCN]

Accepting cryptocurrency donations shows your donors (and employees) that you are innovative, diversifying revenue and looking for the most tax efficient ways for donors to give. In some cases, the marketing benefits may even outweigh the fundraising benefits. 

 

How do nonprofits accept cryptocurrency?

For nonprofits, different wallet solutions for cryptocurrency can mean very different experiences for your team. Some solutions like BitPay accept only Bitcoin related cryptos. It makes life easy for your nonprofit, but means donors with any other cryptos will trigger a taxable event converting to Bitcoin before they give, losing their tax incentive.

Other non-custodial solutions are popular among the die-hards in crypto, such as blockchain.info. The issue here is that not only would you have to set up new systems for each individual crypto, but there would be no way to have donations convert automatically back to USD, sheltering your nonprofit from market volatility. 

Identifying the need for donors to contribute from many crypto communities (not just Bitcoin), as well as the needs of nonprofits to have a solution that wasn’t just easy, but worked - we created The Giving Block, designing the first solution designed specifically to work for nonprofits and their donors. 

The Giving Block v Bitpay - TGB will educate your leadership, train your team, accept bitcoin/bitcoin cash, accept all top cryptos, auto-conversion to USD, human support, corporate partnerships, donor engagement, built for nonprofits

 

Wrap Up

For nonprofits, accepting Bitcoin and other cryptocurrency donations may not feel necessary yet; however, as we see the user base of cryptocurrency grow (currently 40-50 million people), we expect the growth and adoption to be similar to that of credit cards. Ten or fifteen years ago not many nonprofits accepted credit card donations. Now everyone does. Over the next five years we’ll likely see a similar trend emerge.

Cryptocurrency and Your Nonprofit: EXPLAINED! Did you know donations of cryptocurrency bring a massive tax write off? Join us to learn how your nonprofit can take advantage of this fundraising method. Click to register now.

 

About The Giving Block: 

The Giving Block equips nonprofits to fundraise Bitcoin and other cryptocurrencies, providing education, training, and a technical solution. For nonprofits who choose to go the extra mile, they advise on crypto fundraising strategies, and pair nonprofits up with partner crypto organizations, elevating fundraising and awareness outcomes. Ultimately, they help nonprofits build a crypto fundraising program, and a brand in the cryptocurrency industry. 

Interested in learning more about cryptocurrency accepting cryptocurrency donations? Visit our website, www.TheGivingBlock.com, or give us a shout at info@thegivingblock.com.

Alex Wilson & Pat Duffy

Alex Wilson & Pat Duffy

Alex Wilson’s background is in management consulting, specializing in digital transformation, which led him into a career focused on blockchain and cryptocurrency. For the last couple of years, Alex has been investing and consulting in the blockchain space. Now he’s turned his attention to the nonprofit world. Pat Duffy began as a federal consultant for pharmaceutical companies, focused on collaboration with nonprofits. He then shifted to the nonprofit sector, focusing on operations and fundraising. Merging his nonprofit experience and passion for crypto trading, he now designs and implements initiatives focused on elevating nonprofit outcomes and cryptocurrency adoption.

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