Odds are you’ve heard about cryptocurrency. An increasingly popular form of digital currency, 1 in 5 Americans have used cryptocurrency, and that number is growing (NBC). Even after experiencing a drop in 2022, cryptocurrencies, like Bitcoin have continued to rally and grow in value this year.
But what does that mean for your church? And more importantly, how does it relate to giving?
You don’t have to have a 5,000 person church or be a tech expert to understand digital currency and how it can be a new avenue of giving for your church. In this guide, we will provide insights and address common questions to help you understand and embrace this new form of generosity.
1. What exactly is cryptocurrency?
Cryptocurrency is a form of digital currency. There are multiple types, the most well-known being Bitcoin. It operates on a decentralized network called blockchain, which means that no central authority, like a bank or government, controls it. This decentralization is one of the main reasons why people find cryptocurrencies appealing.
2. Why should our church consider cryptocurrency giving?
There are several reasons why churches might want to explore accepting cryptocurrency donations:
- Diversify your donor base: Cryptocurrency can help you reach a new demographic of donors, especially younger generations who are more familiar with digital currencies.
- Global reach: Cryptocurrencies can easily be sent and received across borders, potentially increasing your church’s reach to international donors.
- Tax benefits: Donating cryptocurrency brings similar tax benefits as donating stocks and can be beneficial for the donor.
3. Do I need to understand how cryptocurrency works to accept crypto donations?
It depends. If your church wants to set up a crypto account to directly receive cryptocurrency, you need to have an idea of what you are doing. But, if you accept crypto through SecureGive, we take care of everything for you, so all you have to do is focus on your mission. When the crypto donation is made, it’s immediately converted to U.S. dollars before it’s sent to your church. Because you receive the donation as U.S. dollars, it’s the same as receiving any other online gift.
4. Do I need to have a big church to utilize cryptocurrency giving?
Accepting cryptocurrency as a form of donation is not dependent on the size of your church, but rather the giving capability of your donors. The average crypto size is $15,000 and some of the largest donations have gone to small churches.
5. Is it safe and secure for our church to accept cryptocurrency donations?
Yes, cryptocurrency transactions are secure due to the nature of blockchain technology. This means once a cryptocurrency transaction is recorded, it cannot be altered or deleted, which ensures the integrity and transparency of each donation.
With SecureGive, when your church receives a cryptocurrency donation, it is automatically converted to U.S. dollars, so it is as secure as all other digital donations. All regulations and security compliances are taken care of for you, which limits any liability for your church.
6. How can our church manage the volatility of cryptocurrencies?
It’s true that cryptocurrencies can be volatile, with their value fluctuating daily. To minimize the impact of volatility on your church’s finances, SecureGive cryptocurrency donations are converted to U.S. dollars immediately upon receipt. This means you can avoid potential losses due to market fluctuations.
7. How can we educate our congregation about cryptocurrency giving?
Educating your congregation about cryptocurrency giving is vital for its success. If they don’t know about it, they won’t give that way. Start by including it in your overall giving communications. Your donors should be able to clearly and quickly give with crypto. You can also educate your congregation about the benefits of cryptocurrency donations and how they can positively impact your church’s mission through social media or a class on giving. Most importantly, you should discuss it with your high-impact donors, as they are the most likely to use this avenue of giving.
For more insight, check out this webinar from our team about what cryptocurrency giving looks like for churches.
As more people embrace this form of currency, churches have an opportunity to tap into a new, dynamic way of receiving donations. It may sound daunting, but the future of generosity is continually evolving. Don’t let your church size or understanding prohibit you from utilizing cryptocurrency – it can be a part of your church’s path toward a more expansive approach to stewardship.