Should Your Nonprofit Accept Bitcoin Donations
The challenge is that existing donation systems do not serve nonprofits well
- Expensive – A significant portion of any nonprofit’s donations currently go towards donation processing.
- Susceptible to Fraud – Whenever a donor uses a credit card to make a donation, the transaction transmits confidential payment information which can be used to fraudulently charge his or her account. The donor is protected by the credit card company but the nonprofit is responsible.
- Slow – It can take anywhere from 2 to 45 days for funds to settle. In other words, someone else is holding the nonprofit’s donations that entire time.
- Cryptocurrency not supported – Most donation service providers do not allow you to accept Bitcoin donations.
With compromised credit cards and data breaches often in the news in the past ten years, fraud is top of mind with many people. Though EMV chip cards promised to make payments safer, fraud – specifically online card-not-present fraud – continues to be a growing problem for years to come. The Federal Trade Commission’s online database of consumer complaints has compiled 13 million complaints from 2012 to 2016, with 3 million in 2016 alone. Of those, 42 percent were fraud related, and 13 percent were identity theft complaints — 128,700 complaints were related to credit cards. ACI Worldwide (an electronic payment systems company) estimates that 46% of Americans have had their card information compromised at some point in the past 5 years.
Electronic checks can be clawed back by the payer’s bank for up to 45 days. Paper checks can be disputed for even longer.
Wampei Register© – Software that allows any business anywhere to accept electronic payments using bitcoin. Nonprofits need not touch any cryptocurrency. Similar to stock donations, Wampei connects to a liquidity provider that can deposit converted USD directly into your bank account.
Wampei – We are not a cryptocurrency. Neither are we a money service business – in other words, we take custody of our customer’s funds. Think of Wampei Register© as a cloud-based cash register. It simply allows nonprofits to accept the most popular, most stable, most widely available cryptocurrency in the world, Bitcoin, without the use of any third party and a very low cost.
Nonprofits have options for how they accept donations.
- In-Person – Nonprofits can accept in-person payments using our virtual terminal or through integration with their point of sale system.
- Online – Wampei Register© can also be used to accept payments directly through plugins with ecommerce systems like woo commerce.
- Invoices – Nonprofits can choose to issue invoices via snail mail, email, fax, or text.
Wampei Register© leverages bitcoin and cryptocurrency technology to allow nonprofits to accept donations as if they were cash. There has never been a simpler, safer, more open electronic donation method available to the public.
After appealing to new donors, what a nonprofit is going to be interested in is the savings. Wampei typically saves nonprofits between 70 and 95% over existing payments methods.
BENEFITS OF USING WAMPEI REGISTER©
Less Expensive – When nonprofits use Wampei Register© they have three options to cover fees – thereby always having an option that is less expensive than credit cards, debit cards, and stock donations and faster than wire transfers and electronic checks.
Not Susceptible to Fraud – Fraud is not a concern when using Wampei Register because donors send donations directly to the nonprofit. There is no personal payment information involved in the transaction. What a relief for a nonprofit where every penny counts.
Fast – Wampei Register is extremely fast. Funds are available in Bitcoin the same day and through a liquidity partner the next day.
WHAT IS BITCOIN?
Perhaps we have gotten ahead of ourselves. Maybe you’ve been asked by your board or a donor if your organization can accept Bitcoin.
Bitcoin is a new digital “currency” or cryptocurrency that exists on the Blockchain on the internet. The Blockchain is a digital ledger in which transactions made in Bitcoin or another cryptocurrency are recorded chronologically and publicly. Bitcoin has a value that changes but can be easily converted to USD.
Consider that this is not all that different from accepting a credit card. MasterCard does not actually get money from your donors until well after the donation has been processed. The donor promised to pay MasterCard for the donation. MasterCard keeps track of that in an internal database. It could have been in USD, Euros, or MasterCardCoins (just wait, it is coming.) The point is the do any conversion they need without your involvement. It can work the same way with Wampei, except there is no chance of chargebacks or fraud.
WHY SHOULD YOU CARE?
You should care because cryptocurrencies are screaming into the collective conscience and businesses and nonprofits are going to be forced to learn how to deal with them. You might as well be ahead of the curve.
- Donating cryptocurrency is similar to donating stock in that are significant tax advantages.
- As of February 2019, there are more than 5 million Bitcoin in circulation.
- An increasing number of nonprofits are accepting Bitcoin donations. Check out these organization’s donation pages:
|The Water Project||TunaPanda.org||The United Way|
- Bitcoin is all over the news. (Check out this Nonprofit Times article from January 2019 about how Bitcoin is going mainstream.)
WHO USES BITCOIN?
Almost 32 million Bitcoin wallets have been created as of December 2018. The number of US Bitcoin users are estimated to be between 7 and 10 million. The number of wallets is growing at about 10% per quarter.
Currently, the majority of the people who use Bitcoin are those who would be considered “early adopters.” These are the types of individuals who work in tech companies, see new technology as a hobby, or are very comfortable around computers and the Internet. That being said, the number of Bitcoin users is growing every day, and more and more people who are using Bitcoin as a payment method is increasing as more businesses accept it.
SHOULD YOUR ORGANIZATION CONSIDER ACCEPTING BITCOIN DONATIONS?
Bitcoin is another way take donations that may fit into potential donor’s financial plans and tax considerations. Your organization likely accepts many types of donations: cash, checks, credit card, stock, automobiles, and other in-kind donations. You should consider accepting Bitcoin for a multitude of reasons:
Your nonprofit never needs to take custody of cryptocurrency. It can be automatically converted to USD and deposited in your bank account. Even a few large donors donating cryptocurrency can make a huge difference to a capital campaign or funding endowments. The cost to accept cryptocurrency is very low when compared with the potential benefit.
HOW DO YOU LEARN MORE?
See Wampei’s videos. Each video is short and contains helpful information.
- Can I Buy Things with Bitcoin?
- What Is Bitcoin? An Explanation for Merchants
- Wampei Register© Demo at Local Joe Hawaii Coffee Shop
- Payment Options Using Wampei Register©
- Creating Bills & Invoices Using Wampei Register©
- Wampei Register© WooCommerce Demo
HOW DO YOU GET STARTED?
Contact Wampei today and we’ll gladly help you accept Bitcoin from your donors today!
|Schedule a Call or Demo:||https://wampei.com/sign-up-for-wampei-register/|
|Call Us Directly:||303-997-2595|
|Send Us an Email:||firstname.lastname@example.org|