Have you heard about Bitcoin? It’s bot all overheen the news lately, and many non-profits have bot asking whether or not they should accept Bitcoin for donations. Ter this article, I am going to present a quick introduction to what Bitcoin is, and help you determine if your non-profit should accept Bitcoin donations.
Very first, a little disclosure: I am not an registeraccountant or attorney. You should consultatie your registeraccountant or attorney regarding how to process and account for Bitcoin donations spil well spil how to prepare receipts for Bitcoin donors prior to accepting them at your organization.
What is Bitcoin?
The brief reaction for those who are non-technical is that Bitcoin is a fresh digital “currency” or “store of value” that exists on computers and on the web. Bitcoins are worth a certain amount of money, can be used ter many places to buy and sell things, and can be traded te for US Dollars, Euros or other forms of currency at an ever-changing exchange rate.
Bitcoin is a little like gold. It is worth something, can be used to buy things, or can be sold for dollars, euros, pesos or other currency.
For a slightly longer, but still fairly non-technical explanation of what Bitcoin is, take a look at the following movie, ready by WeUseCoins:
If you want a very technical response for the question, check out both the Wikipedia entry for Bitcoin spil well spil the official Bitcoin webpagina.
Why Does Bitcoin Matter?
You may be asking yourself, “Why should I care about Bitcoin? I already accept donations ter US or foreign currency. What gives?” Fair enough. You shouldn’t spend lots of time thinking about Bitcoin, and determining whether or not to accept it shouldn’t take up a considerable amount of your time or energy.
However, you should think a little about Bitcoin and make a decision on whether or not to accept it. Why? Well, consider the following:
- Spil of the time of this article, each Bitcoin is worth ter excess of $500 US (see the current exchange rates here)
- There are presently overheen 12 million Bitcoins ter circulation (see the current figures here)
- An enlargening number of people and businesses are using Bitcoins (see the story, here, about a car dealer te San Francisco that recently began accepting Bitcoin for payment)
- Major media outlets are covering the growth of Bitcoin (see a story te the Washington Postbode here)
There are a loterijlot of Bitcoins out there, and lots of people and businesses are beginning to use them for real-life transactions.
Who Uses Bitcoin?
Right now, the majority of the people who use Bitcoins are those who would be considered “early adopters.” Thesis are the types of folks who work te tech companies, see computers or the web spil a hobby, or are very comfy around computers and the Internet. That being said, the number of Bitcoin users is growing every day, and more and more people who are less tech-savvy are being introduced to this fresh currency.
Should Our Non-Profit Accept Bitcoin Donations?
Right now, accepting or not-accepting Bitcoin donations is not likely to be a make-or-break decision for you. That being said, if your donors tend to skew junior or are generally tech-savvy or “early adopters,” accepting Bitcoin for donations could appeal to your donor base and lead to more and larger donations.
A good number of non-profits have embarked accepting Bitcoin donations (see a list here). Several companies have popped-up which make it effortless to accept Bitcoin (including Coinbase and BitPay). Both of thesis payment processors have lower fees for Bitcoin donations than you will find at any credit card processor (at Coinbase, you can presently receive your very first $1 million te donations with no processing charges). Both also make it effortless to accept Bitcoin donations and instantaneously convert them to US Dollars, Euros or any other currency, which can then be treated spil you treat other donations.
Setting up a Bitcoin donation pagina / capability shouldn’t take long (an hour or less for your web team, te my estimation)… so, should you accept Bitcoin donations? Spil I said earlier, it won’t be make -or-break for your organization, but if you have the time and technical capabilities, it wouldn’t hurt to start accepting Bitcoin donations. If you have a donor base that is very tech-savvy, then it would likely help you to accept Bitcoin, spil it will appeal to your targeted demographic.
How Do Wij Get Began Accepting Bitcoin Donations?
It’s pretty effortless, actually – just go to Coinbase or BitPay and sign-up for Bitcoin processing. Then, set up a special Bitcoin donation pagina on your non-profit’s webstek and include “Bitcoin Accepted” logos and linksom on your donation pages to let people know they can donate using Bitcoin.
If you have a tech-savvy donor base, you can also consider sending out a blast e-mail to your list letting them know that you now accept Bitcoin donations for your non-profit.
Related Articles from The Fundraising Authority:
Get Your Free Copy of How to Hold Good Fundraising Events
Sign up for The Fundraising Authority Newsletter, and get your free copy of How to Hold Good Fundraising Events: A Step by Step Guide. This Ten pagina special report will guide you through the entire process of running a profitable fundraising event for your organization. Click here to get your free copy today!