Cryptocurrencies are "digital assets and decentralized systems that allow for secure online payments," per Investopedia. In short, new forms of digital money that can be transferred between different parties.
One of the biggest appeals is that the currency rises and falls according to supply and demand and public sentiment, not a country's fiscal policy or currency. Additionally, many are projecting cryptocurrencies to be the future of buying and selling, despite recent sell-offs and snags in popular crypto values.
From Bitcoin to Ethereum, there are myriad options when it comes to investing in crypto. One of the biggest benefits to using crypto for giving is that (similar to stock gifts) crypto gifts aren't subject to capital gains tax when given directly. Moreover, they have the potential to rapidly increase in value, making them a potent long-term giving vehicle.
As our CEO Vance Roush said recently: "The average crypto holder is in their 20s and 30s. When we think about educating our churches [and nonprofits] around giving in these new ways, it’s not just a "nice to have." It’s a generational necessity. You’re one generation away from not having the resources to propel your mission forward…[crypto] is here, and it’s accelerating in unprecedented ways."
Crypto is one of the three asset classes supported by Overflow (the other two are stock and credit/debit/ACH). Our goal is to make giving frictionless and easy by offering a straightforward process:
Step 1: First, you'll choose the cryptocurrency you want to donate from. As of right now, there are 74 different types of coins you can donate. Because security is a top priority, we utilize the criteria set forth by the SOC 2 Framework, a widely respected information security auditing procedure.
Step 2: Select which crypto you want to donate and which fund you want to give towards.
Step 3: A QR code will be sent to your phone that links to your crypto wallet (such as Coinbase) so you can fulfill the gifts. Once you've done that, your donation goes directly to the nonprofit or church's crypto wallet that's already been set up in advance.
And that's it! It's been said that if a process takes more than three steps or is convoluted, donor retention and engagement goes down. People are drawn to ease of access and will take the path of least resistance, so we try to make our crypto donation process extremely simple.
If you have any questions or concerns while donating, you can click a button in the bottom corner that connects you with an Overflow representative. They can help walk you through the process and ensure that you have full confidence in giving from your crypto wallet.
Reception to Crypto Giving
Our clients have had an overwhelmingly positive reaction to Overflow's crypto giving platform, which is constantly being tweaked and refined to accommodate the dynamic nature of the crypto world:
"We want to build infrastructure to make generosity frictionless right across all the asset classes. And again, it's not perfect because we have to constantly be iterating on it. But it has been well received both on the NPO and donor side too," said Overflow product manager Franck Xian