Does Your CSO Take Crypto Donations? Blockchain May Help You Fundraise

Proponents of blockchain argue that the technology will make CSO fundraising more transparent and trusted since it makes it easier to track social impact, streamlines donation processes and attracts a new demographic of crypto donors.

As this Blockchance article explains, blockchain essentially registers and stores data, information or transactions securely, and uses ‘distributed ledger technology’ to manage this through a vast network of computers. Because every node in this network has the same version of the blockchain, manipulation within the network is always detected. As such, the technology creates a transparent donation chain where funders can track exactly when and where their money arrives and where it goes (as you would a mailed package) and be viewed both within and outside the network. Conversely, the donor can be tracked, making compliance with taxes and other aspects of donations easier. Grace of digital wallets, the anonymity of donors can be guaranteed. Also, by automating and simplifying administrative tasks, it saves CSOs time and money.

Several top CSOs already accept cryptocurrencies as a means of donation, and crypto donors (who tend to be under 35) are among the most generous in their giving, with gifts averaging over $10,000. For a more comprehensive, detailed description of the way cryptocurrency works, we suggest this Forbes article.