Why should you accept donations from crypto?

Cryptocurrency has travelled from being an investment entity to being a payment mode. And now it's inclining towards being a medium for charity donations. People have started using crypto payments to make donations. Looking at this shift, several NGOs have started a crypto payment gateway to allow users to donate their crypto. The crux behind this development is the several benefits of crypto payment donations. Not only does it help in saving taxes, but it also attracts a larger proportion of people who are interested in donating.

However, several NGOs still shy away from incorporating crypto payment gateways. This is because they might not understand how crypto payments work for donations. Sometimes they also don't like the change in conventional ways. However, not incorporating crypto payments in your donation methods will only hinder the organization's growth. On the other hand, many people, especially youth, are interested in donating their cryptocurrency. This blog will discuss the benefits of accepting crypto donations and how you can accept them?

Benefits of accepting donations in crypto payments

Any organization looking for expansion should consider accepting crypto payments. Establishing a crypto payment gateway helps organizations incorporate a safer and faster transaction medium. This helps attract many people who want to conttibute to society's welfare in any way possible. Let's see what some other benefits of accepting crypto payment donations are;

Tax savings

Several people need to pay a large sum of taxes on their wealth. Now the best way to reduce such tax deductions is by donations. That's why more and more people choose to donate. However, fiat currency donations still come under a fixed tax charge. But crypto payments have no such obligations. They are completely free because they are decentralized. Similarly, several people benefitted from a sudden boost in cryptocurrencies like Bitcoin over the years.

They earned huge profits, and that's why they become subjected to capital gains taxes. However, they can also save money by making crypto payments. So if an organization decides to set up crypto payment gateways, it can attract many donors who want to save their taxes. Moreover, the organization receiving crypto payment donations also saves money on taxes.

Low transaction cost

When an organization receives funds through transactions or credit cards, they need to pay a hefty transaction fee. This fee ranges from 2.2% to 7.5% of the total paid amount. So transaction fee snatches away a good amount of donations from the hands of an organization. For instance, a person paying through credit donates $500. But around $25 will be deducted from the amount in the name of transaction fees. However, when organizations take donations in crypto payments, they get free from such obligations. It is because crypto payments have no transaction charges.

Attracts crypto philanthropists and youth donors

Incorporating a crypto payment option for donation help in intriguing a new set of donors from different segments. For example, many youths are techno-savvy and profusely involved in cryptocurrency. So accepting donations in crypto payments also attracts such youth donors. Likewise, when many organizations accept crypto payments for donations, it attracts crypto philanthropists to your organization.

Helps in brand visibility

Crypto payments for donations are a very new concept. Only a few organizations have established crypto payment gateways to accept crypto donations. Incorporating a completely new donation method will also increase brand visibility. It will also make your brand look more innovative and techno-friendly.

Various businesses from different industries want to associate with crypto in different forms. It is because cryptocurrency is seen as a revolutionary step in the global financial system. So accepting crypto donations will make the organization stand out and garner more attention. It can also help spread awareness about the organization's main welfare motive.

International appeal to the organization

With crypto payment donations, an organization can associate with international donors. In fiat currency donations, the currency goes through several exchanges and lengthy processing delays. However, with crypto payment gateways, there is no such exchange barrier of currency. Therefore, anyone, even from remote areas of the world, can instantly donate to your organization. So organizations that want to expand their reach should consider developing crypto payment gateways for donors.

Increased transparency

All the transactions made by cryptocurrencies get stored in the blockchain. It is a public consensus network and allows access to everyone. That's why the transactions are entirely transparent. This helps in increasing the credibility of the organization.

How to start accepting crypto donations?

To accept crypto payment donations, you need to start setting up the organization's crypto wallet. Let's see a step-by-step approach to accepting cryptocurrency donations.

Establish a crypto wallet {account}

The crypto wallet works similarly to a bank account. It manages the functions like deposit and withdrawal of the cryptocurrency. Several crypto wallet service providers offer this service for free. They also guide managing the transactions.

Integrate to the website of the organization

The next step is to integrate your crypto wallet address into your website. Again, you can try plug-ins for this purpose. You can also create invoices or donation buttons. First, however, make sure the integration is straightforward and offers a streamlined transaction process.

Make your donors aware.

Not many organizations accept crypto payments as donations, so make sure to tell your donors. You can do this by making a dedicated space for an awareness message about crypto donations. You can also send emails or notifications through newsletters.

Conclusion

For any organization, accepting donations through crypto payment gateways provides several advantages. It saves the transaction fees, helps communicate to a large donor base, and gathers people's attention. In addition, organizations can execute and accept transparent transactions to increase their credibility. Most importantly, it helps save taxes, and it is straightforward to incorporate. Crypto payment gateways enable the users to make easy donations even from remote areas.

Moreover, it doesn't require a long processing period and exchange barriers. Therefore, Crypto currency is seen as a revolutionary step in the global financial system. So NGOs should also take this opportunity to contribute to their growth.

Contact UniPayment today to get the crypto payment gateway integrated.