Crypto philanthropy is one of the fastest-growing revenue channels for nonprofit organizations. Unfortunately, many nonprofits find a solution to accept cryptocurrency donations but do not think about fundraising. This stems from a common lack of understanding about this community. This is a donor demographic, not a donation method. You cannot simply begin accepting cryptocurrency donations and wait for the money to flood in.
Crypto fundraising basics are very similar to traditional fundraising, but there are a few unique aspects that can feel daunting if you have no prior experience with cryptocurrency. Nonprofits tend to underestimate the nuance. Just like you tailor your fundraising strategies for each demographic, you do the same for the crypto demographic.
Step 1: Determine Your Crypto Fundraising Goal
It can be difficult to determine crypto fundraising goals, especially if you don’t have any prior experience with crypto. Our biggest recommendation to those starting their first crypto fundraising campaign is to set clear and realistic goals.
Every nonprofit knows how much money they need to raise that year to meet their yearly fundraising goals. We suggest setting aside a small percentage of your yearly goal and thinking of it as your crypto fundraising goal. Keep in mind that when setting a fundraising target for your first crypto campaign, bigger doesn’t always mean better. Some organizations aim for a smaller amount such as a few thousand dollars, especially when they’re new to crypto fundraising, with an overall goal to spread mission awareness.
Step 2: Set A Timeline
Before announcing your campaign, you should determine how long your fundraiser will last. A longer campaign gives people more time to donate, but a shorter campaign creates a sense of urgency to donate. There are pros and cons to each option, but we find that the most successful crypto fundraisers involve a short campaign timeline, with fundraising occurring over a couple of weeks or even a few days.
Step 3: Announce Your Fundraiser
Once you’ve set a fundraising goal that you’re comfortable with, it’s time to announce your campaign to the world. There are two effective ways to do this:
- Identify current supporters who are likely to give, and ask them to help spread the word.
- Leverage the power of Twitter, which is especially popular with crypto users.
Many nonprofits effectively engage with crypto users using tactics like hosting Twitter Spaces, which are live, public audio conversations that can serve as forums to share your mission, campaign goals and reasons for accepting crypto donations—all while having direct communication with potential supporters.
Step 4: Build Buzz
Accepting cryptocurrency is still a new and unique way to differentiate your nonprofit from others, and many nonprofits find success by using the power of the media to help build buzz for the campaign.
Local news organizations are always looking for heartfelt stories and unique things that are happening in their community. When drafting a pitch to the local press, ask yourself the following questions:
- Are we the only nonprofit in our community that accepts crypto?
- If we meet our fundraising goal, how many people in the community will these crypto donations help?
- How can crypto users in my community donate?
By addressing these questions in your pitch, you’re creating a compelling story that will likely resonate with local reporters. Once the story runs in the newspaper or on your local news station, share the piece on social media to further build buzz.
Step 5: Provide A Clear Call To Action
Providing a clear call to action is arguably the most important part of the entire campaign. A “call to action” is a clear and concise statement that compels a donor to take action and immediately donate. A strong call to action typically states why it’s important to donate and links directly back to the donation widget. By linking directly to the donation widget in your call to action, you’re making it easy for donors to navigate and immediately give.
By following these five simple steps, you’re one step closer to having a successful crypto fundraising campaign.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.