There is still a hurdle that Bitcoin needs to cross to gain mass acceptance. And that is understanding. There are many everyday people that use Bitcoin, but many businesses are fearful to accept it or simply don’t know how. More than anybody, nonprofits have been slow to adopt this new currency.
Bitcoin is being used from everything from Bitcoin IRAs for retirement accounts, Bitcoin e commerce platforms and even peer to peer lending. With this much in circulation, then it makes sense to add nonprofit donations to the list.
Nonprofits stand to make a lot more money than they currently do by accepting Bitcoin and also investing in cryptocurrency and the blockchain.
In this article, we will go over some reasons your nonprofit can benefit from Bitcoin.
It Is Easy For Donors
Many nonprofits are afraid of the volatility of Bitcoin. Money is hard to come by for them so it only makes sense that they wouldn’t want to see it evaporate overnight. Yet, it is exactly this volatility that makes it attractive for donors.
If it looks like it is going to lose value then that is an incentive for them to donate it before that happens. Since the IRS considers donating Bitcoin as stocks there is no capital gains tax paid on it and it can be written off.
This doesn’t mean that it will lose value for the nonprofit, however. Many payment processors have an option for it to be converted to cash as soon as it is transferred so there is no risk of it losing value as it sits in a digital wallet.
It Is Secure
If the nonprofit chooses to not convert the Bitcoin right away in an attempt to allow it to grow, then there is no risk of it being hacked. Bank accounts on a cloud server are at a much higher risk of a security breach than the blockchain.
A hacker need only access one server on the cloud. With the blockchain, they would need to hack thousands of computers. The blockchain doesn’t have a server. It lives on everybody’s computer who is using it in essence.
That doesn’t mean you don’t have to be careful with Bitcoin. You’ll need to keep the digital wallet offline and never lose the private key you have for your coins.
Bitcoin Does Have Some Regulation
It’s a misconception that Bitcoin is totally unregulated. It’s true that there is no financial institution that mints and distributes it, but that doesn’t mean that the government is hands off. The IRS, SEC, CFTC and local regulators all have some oversight on how Bitcoin is handled. If they thought that it shouldn’t be in circulation then they would have the authority ban it outright as some countries have done.
The SEC treats cryptocurrency as securities and commodities and has oversight as such. They don’t regulate the trading but do consider them traditional assets.
There has never been a better time to start taking Bitcoin as a donation and there are very few reasons not to do so.