Karen Houghton
June 20, 2024
Crypto

The fundraising landscape is constantly evolving, driven by new technologies, giving trends, and global developments. To keep up and tap into the future of fundraising, nonprofits must embrace new opportunities.

While much attention is on artificial intelligence (AI), there's another growing trend worth noting: the fundraising potential of appreciated assets.

More donors are interested in giving non-cash appreciated assets like stocks and cryptocurrency. By enabling them to do so, your nonprofit can significantly boost its fundraising revenue. Here are four steps to start taking advantage of this impactful giving method:

1. Simplify Non-Cash Donations

Donating stocks and cryptocurrency can be more complex than giving cash or using a debit card, but it doesn't have to be difficult! Simplify the process by using a tool that allows you to accept these gifts directly from your online donation page, with no transaction fees.

An intuitive crypto or stock donation platform can make the process easy for donors:

  1. On your donation page, the donor scans your crypto wallet QR code or clicks a button to donate stocks.
  2. The donor sends cryptocurrency to your account or inputs their stock and brokerage firm information to initiate a stock transfer.
  3. Once the transfer is complete, the platform automatically converts the non-cash gift into cash and deposits it in your nonprofit’s bank account.

Emphasize the simplicity of this process on your donation and "Ways to Give" pages to encourage donors to consider non-cash giving.

With the process set up and multiple pages promoting non-cash giving, you can incorporate stock and crypto donations into all your fundraising campaigns and accept non-cash gifts anytime.

2. Understand Benefits and Concerns

Ensure your team understands both the benefits of non-cash giving and any concerns your donors may have. You’ll be more successful in promoting these giving methods if you can empathize with donors and address their motivations, preferences, and fears.

Benefits for donors include:

  • Tax advantages: Donors can receive charitable tax deductions and avoid paying capital gains taxes on their appreciated assets.
  • Larger donations: Donors can give more than they originally spent on the asset, enhancing their contribution without affecting their day-to-day finances.

However, donors may have concerns, such as the potential for their crypto gift to lose value after donation or worries about the length of the stock donation process. Reassure them that your organization will convert their gifts to cash immediately to preserve their value. Explain how your non-cash giving platform streamlines the process, ensuring quick receipt of donations.

3. Launch a Strategic Marketing Campaign

Develop a multi-channel marketing campaign to promote non-cash giving. Create content for all the channels your audience prefers, including email, social media, text messages, and direct mail.

Your promotional materials should explain:

  • What cryptocurrency and stock donations are
  • The tax benefits of crypto and stock giving
  • How to donate stocks and cryptocurrency on your donation page
  • Reasons to give non-cash gifts in addition to traditional donations
  • The speed and security of your nonprofit’s donation process

Get creative with your marketing content. Design how-to infographics, write blog posts about the impact of crypto donations, or record video walkthroughs of the non-cash giving process.

Use your nonprofit’s CRM data to identify donors who may be interested in non-cash giving and send them personalized fundraising appeals. Focus on mid-level and major donors, those interested in non-traditional giving forms, or supporters with high financial capacities. Consider donor demographics, too—57% of crypto owners are Millennials, while only 20% are Gen Z members.

4. Recognize Donors Who Give Stocks and Crypto

Encourage more donors to give non-cash donations by recognizing and appreciating those who already do.

Public recognition can inspire others to learn more about non-cash giving and make their own asset donations. It also helps you maintain strong relationships with existing non-cash donors, boosting retention and encouraging future gifts.

Start with basic donation acknowledgment emails, which the best non-cash donation platforms can automate. Then, consider additional recognition methods. For instance, Kwala recommends sending branded merchandise, creating thank-you videos, or spotlighting donors in your newsletter or on social media.

When publicly recognizing donors, highlight their giving method and the impact of their gift. For example, "Deborah donated $10,000 worth of stocks, enabling us to provide brand-new technology for our community center that serves hundreds of families in need."

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In Summary

With experience in non-cash fundraising and stock donations, consider exploring other opportunities like investing your organization’s reserve funds for potential growth. While the process may seem daunting, a nonprofit investing advisor can guide you through every step, making your organization more financially sustainable in the long term.

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