the associations’ enthusiasm for this solution

More and more associations are using cryptocurrencies as part of their fundraising campaign. At the origin of this initiative, UNICEF launched the GameChaingers operation in 2018, which turned out to be a great success. Faced with this success, this UN agency offered cryptocurrency holders to make donations in virtual currencies. What is fundraising? What are the advantages and disadvantages for an association to collect donations in virtual currencies? What solutions are available to small donors?

Definition of fundraising

Fundraising is an English term for fundraising. It consists of encouraging and raising a certain amount in the form of donations from government agencies, foundations, companies or individuals. The funds collected are generally used to defend causes of general interest or constitute private resources for certain organisations.

Knowing a real boom, this discipline is now used in the fields of higher education, research and culture. Previously, it only evolved in the solidarity sector.

In addition to having to comply with the continual evolution of different sectors, it faces the new law on university autonomy, the reduction of subsidies and the withdrawal of the State. These different elements have contributed to the development of this discipline.

The benefits of cryptocurrency fundraising

Launching a cryptocurrency fundraising campaign offers many advantages. Indeed, the transfer of the donor’s contribution is secure and the association avoids the various administrative control procedures which are costly.

Thanks to the blockchain method, the donor is spared from the current system in which many intermediaries with expensive services intervene. The latter thus reduce the amount of the contribution that the beneficiary receives. By using cryptocurrency, this network of intermediaries becomes unnecessary, because an algorithm automatically monitors compliance with a series of previously defined conditions.

Faced with the security offered by this solution, many believe that it will help increase the number of donors. The latter will be able to enter directly into contact with the final beneficiaries without having to go through an NGO.

The disadvantages of this technique

There are rumors that cryptocurrencies are used as a means of payment in the illegal market or for money laundering. The reputation of non-profit associations is thus called into question in the face of these statements. Nevertheless, the blockchain technique remains transparent, because no manipulation is carried out a posteriori. Thus, it contributes to the fight against corruption.

You should also know that even for cryptocurrency trading, there are more and more secure platforms., for example, offers 24/7 support, so you can trade with confidence and expect the highest level of customer support to be on your side.

Small donors may retract in the face of expensive Bitcoin transfer fees. Thus, few Bitcoin donations are recorded. However, some major donors can make anonymous donations of up to several million dollars to many charities.

Cryptocurrencies consume a lot of energy. According to specialists, the energy consumption of cryptocurrency reaches more than 1.5 billion euros. For this reason, only a few NPOs or non-profit organizations accept donations using this method. Likewise, environmental organizations may be reluctant to accept this solution. However, Ethereum virtual currencies are more environmentally friendly can remedy this hesitation.

Digital currencies for small donors

On their site, associations can offer different kinds of cryptocurrencies for large and small donors. With short transaction times and inexpensive fees, cryptocurrencies, such as Dash, Stellar or Litecoin are suitable for small donors.

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