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Due to the COVID-19 pandemic, more and more non-profit organizations were accepting cryptocurrencies

November 4, 2020

For the past three years More and more non-profit organizations are accepting donations based on cryptocurrency. According to Alex Wilson, Co-Founder of the Cryptocurrency Donation Gateway, The giving block, The COVID-19 pandemic has driven this trend more than ever.

Preventive measures against COVID-19 began to accelerate in March 2020, causing business closings and economic turmoil for many. Businesses and nonprofits alike saw huge revenue losses as the virus took over the world.

“Interestingly, over the past six months, COVID has been a very important catalyst for nonprofits to adopt cryptocurrencies as many of them are looking for different ways to make up for lost revenue, but also to diversify your income with new things like cryptocurrencies,” Wilson told Cointelegraph in an interview.

Due to the COVID-19 pandemic, more and more non-profit organizations were accepting cryptocurrencies
Due to the COVID-19 pandemic, more and more non-profit organizations were accepting cryptocurrencies

Though fueled by COVID-19, several nonprofits accepted crypto assets amid the bull market euphoria of 2017. “A lot of people were essentially looking for ways to offset their capital gains taxes, especially in the US.” Wilson continued:

“One of those ways was to donate cryptocurrency to charity, unless I realized that people wanted to donate to nonprofits, but most of them did [las organizaciones sin fines de lucro] They had no idea how to accept crypto. “

To solve this problem, Wilson and his friend Pat Duffy combined their skills and resources to come up with a practical way to donate cryptocurrencies. “That kind of tax break really was a driving trend behind it or a driving motivation behind it.” Said Wilson.

“We only founded the company last year. [2019]It really was when we launched it publicly, and now we’re working with about 100 different nonprofits. ” Wilson explained.

Cryptocurrency donations serve as a door for potential backers to a separate and untapped market, Wilson said. Explained that “Most nonprofits tend to have older donors and are looking for ways to connect with younger donors, build those longer relationships with younger donors, and crypto has been one of those ways.”

Wilson explained that too The company offers more than just a new payment method for company trailers:

“One amazing thing about crypto donations was that for the most part, they are brand new donors so they can’t exploit any of the other forms of donation. It’s a completely new source of income for them.”

There are many payment solutions in the crypto space, some of them Convert digital assets to the recipient’s default currency when you receive payment. When a company integrates the solution offered by The Giving Block, it can choose to keep its donation in the cryptocurrency it received or convert it to a more traditional fiat currency. According to Wilson “90% of our customers choose automatic conversion because they are still a little concerned about the volatility.”