# How Non-Profits Accept Cryptocurrency Donations

By [Mitama](https://paragraph.com/@mitama) · 2022-11-03

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Cryptocurrency has been increasing in popularity lately. As of the writing of this article, the crypto market cap is [$936.73 billion](https://coinmarketcap.com/) dollars. This steady rise has not only caught the attention of crypto enthusiasts, it has appealed to non-profit organizations too.

Cryptocurrencies offer several benefits to non-profit organizations. We cover these benefits in our article [**_How Blockchain Adds Value to Charities_**](https://medium.com/@mitama/how-blockchain-adds-value-to-charities-3d850ca817c3)**_._** Some of the charities already on board with crypto donations include World Food Programme, Save the Children, Amply and AIDChain.

You don’t have to be an expert to use cryptocurrencies or to receive and process donations. There are even different methods you can choose from.

In this article, you will learn what methods you can use as well as the other blockchain donation forms you can use.

**Use an Intermediary 501(c)(3)**

If you want to minimize accounting and tax filing requirements, using an intermediary 501(c)(3) is a great option. Using an intermediary means that it takes custody of the cryptocurrency from you and assumes responsibility for sending tax receipts, filing IRS forms and complying with cryptocurrency regulations and practices.

This includes donor advised funds (DAF) such as [Fidelity Charitable](https://www.fidelitycharitable.org/). While you need an account with Fidelity to access their features, you can use [Everyday.org](http://everyday.org/) as an alternative. There, you can create a donation button to get going for free.

**Create and Use a Wallet**

This is the most manual method. While you eliminate an intermediary, you need to fully understand cryptocurrencies, including the different types, trends, volatility and market cycles. You may also need to hire staff specifically to manage the technical aspects of a personal wallet.

If you choose to get a wallet, you have options, including web wallets (online), software wallets (downloaded), or even hardware wallets (devices).

Stablecoins are a great way to start since they are less susceptible to volatility, unlike other cryptocurrencies.

**Use Crypto Payment Processors**

This is the simplest method of accepting cryptocurrencies. These processors handle all the administrative and transactional tasks of your crypto including accepting, holding and selling. They also help with conversion to fiat, tax receipts and, in some cases, create marketing campaigns for your community.

All you need to maintain is custody of the cryptocurrency. This means that you need to manage compliance regulations with the IRS and other accounting best practices.

If you are looking for payment processors, you can use the Giving Block and Engiven, for a small service fee.

**Use Crypto Exchanges to Checkout Donations**

If you are looking to check out crypto donations, you can use crypto exchanges. They allow automatic conversion to cash for minimal fees. While they are cheaper than payment processors, they lack some of the services. Non-profit organizations will still need to manage donor support, tax receipts and the gathering donor information.

Options include Coinbase and BitPay.

**Other Forms of Blockchain Donations**

Cryptocurrencies are the primary form of donation, but there are also other blockchain forms. These include NFTs, DeFi and Charity Coins or Tokens.

NFTs have proven to be a useful blockchain donation tool for causes such as: Jack Butcher’s “Care Package,” Tony Hollingsworth’s “Listen,” and the War in Ukraine. The Care Package raised 59.54 ETH, or roughly $225,000, which it directed towards helping Afghan families suffering as a result of the Taliban takeover which caused hunger and declining health services. Add mitama’s way here and have it li

Some DeFi platforms like 1inch are accommodating donation features on their platform. Lastly, some charities have made it possible to mint special charity coins. The coins are sold to consumers with a goal to raise funds. For example, Bingus has a token for raising funds for animal shelters.

Crypto donations are changing the way charities raise funds. Moreover, crypto donors are [more generous](https://www.fidelitycharitable.org/about-us/news/growing-popularity-of-cryptocurrency-could-fuel-charitable-giving.html) than fiat donors. Therefore, charities need to find an acceptable crypto method that works best for them in order to enjoy the perks of crypto and its charitable donors.

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*Originally published on [Mitama](https://paragraph.com/@mitama/how-non-profits-accept-cryptocurrency-donations)*