Cryptocurrency fundraising is a fast-growing trend in the nonprofit sector. Though modern cryptocurrencies have only existed since the launch of Bitcoin in 2009, already hundreds of nonprofit organizations accept donations in a variety of crypto assets. Here at RenPSG, we’ve partnered with The Giving Block, a crypto fundraising solution trusted by more than 800 organizations, to enable donor-advised fund programs to elevate their profiles in the crypto community, especially as we head into year-end giving season.
Read on for details about several important crypto fundraising campaigns running throughout November and December:
1. Bag Season
Crypto users are known for many things, one being their use of unique slang terms. It makes sense, then, that someone would eventually rebrand the “giving season” into something more crypto-centric. The “bag” in Bag Season refers to the large amount of crypto that someone is holding (or HODLing, in crypto-speak). Bag is comparable to “portfolio,” but specific to crypto.
The name might be light and catchy, but it carries a deep message: it signals to the wider community of crypto users that they are able to donate cryptocurrencies to charity. (With a user base that doubled in 2021, it’s highly likely that many aren’t aware that nonprofit organizations can accept crypto donations.) Bag Season runs through the end of December and kicks off with Crypto Giving Tuesday.
For donor-advised fund programs, the launch of Bag Season means an increased interest in crypto charitable giving toward the end of the year. And during this Season, our partners at The Giving Block will remind potential donors in the crypto community about the tax incentives to give charitably. To help donors who want to use a donor-advised fund to support their favorite charities, donor-advised fund programs will prepare materials like one-pagers, brochures, FAQs, and other resources.
2. Crypto Giving Tuesday
Crypto Giving Tuesday falls on November 30, 2021, the same day as #GivingTuesday. Both are online fundraising initiatives that activate nonprofits and their supporters around the world. The key distinction is that Crypto Giving Tuesday is solely devoted to fundraising cryptocurrencies.
As the largest annual cryptocurrency fundraising event, Crypto Giving Tuesday is expected to drive a massive donation volume to crypto-friendly nonprofits from individual donors and companies in the crypto and blockchain industry. If there is one day when nonprofits can take advantage of the “power in numbers” phenomenon, this is it.
Here’s what donor-advised fund programs need to know: Crypto Giving Tuesday serves as the de facto “starting line” for Bag Season. Mark this in your calendars as the day when interest in crypto gifts into new or established donor-advised funds will be highest and be ready to capitalize on the growing donor interest.
3. The Crypto Giving Pledge
Nonprofits accepting crypto for the first time often rely on social media platforms like Twitter to fundraise. Most have success connecting with future supporters by using hashtags like #DonateCrypto, but it can be hard to foster a community within a sea of largely anonymous users. To address this challenge, The Giving Block has developed The Crypto Giving Pledge to help establish a community of crypto donors that are committed to philanthropy over the long-term.
Donors who take The Pledge agree to give one percent of their crypto gains to charity each year. Though new this year, The Crypto Giving Pledge already boasts members like Tony Hawk, Rainn Wilson, and dozens of entrepreneurs, high-profile figures, and generous individuals that are not in the limelight. Companies like FTX have also signed on. Once the signatories make their annual donations, they appear on a publicly-facing leaderboard.
For individuals with a public persona in the crypto space who are considering a donor-advised fund, The Crypto Giving Pledge is a great way to broadcast their generosity. While some donors will want to remain anonymous, others will hope to publish their giving to drive positive associations with their brand, encourage others in their network to give charitably, or land a spot on the leaderboard. Donors who wish to stay anonymous may also want to benefit in that way, which is why our partners at The Giving Block will include private donors in their listings.
Year-Round Ways to Give
With the recent upward valuation in the cryptocurrency market cap (currently around $2.7T), many crypto users are seeking ways to offset their capital gains made by investing and trading. To do so, these investors can make cryptocurrency donations to nonprofits or into donor-advised funds. Cryptocurrency donations provide a tax deduction and help offset capital gains taxes that would otherwise need to be paid to the IRS. While some tax-savvy investors donate their crypto during the final months of the year, crypto philanthropy is not exclusively an end-of-year phenomenon.
However, interest in donating cryptocurrency will be highest during the end of year giving season. Bolstered by campaigns and initiatives like Bag Season, Crypto Giving Tuesday, and The Crypto Giving Pledge, your potential donor-advised fund investors with crypto assets are highly likely to hear the call to direct some of their funds for charitable purposes. If your donor-advised fund program wants to be ready to meet this growing interest during Bag Season and beyond, now is the time to consider how you can best prepare.