No matter the size of your charity or the cause you champion, fundraising is always a concern. No matter how big an organisation or how robust the supporter base, a charity needs to be able to cover its costs before it can effectively support the people it wants to help.
The bigger the charity the greater the overheads and the harder it has to work to gain the support of the general public.
As we’ve seen in recent years, this has led some charities to adopt some less than ethical tactics in order to hit fundraising goals.
With 185,000 charities in the UK and 5,000 new charities appearing each year it’s becoming harder and harder for organisations of any size to raise the capital they need. There simply isn’t enough money to go around.
Cryptocurrency represents an entirely new way for charities to raise money by leveraging existing infrastructure and your existing supporter base and requires nothing of your supporters beyond using their computers as usual.
Is cryptocurrency a viable investment for charities?
Cryptocurrency has the potential to transform the way the world works. Unlike fiat currencies – which are controlled by central regulators such as the Bank of England or the Federal Reserve – cryptocurrency is an entirely independent body.
This apparent lack of regulation has financial institutions and governments around the world scrambling to define what cryptocurrency is and how it should be classified.
Some governments, such as the UK and the US, have been much quicker than others but serves as a clear indication that cryptocurrency will be – if it isn’t already – an established means of doing business.
As with any investment it’s not without risk. Some currencies are worth more than others and their values can – and do – fluctuate depending on the market conditions.
No market is without volatility and selling at the first sign of trouble is exactly what causes markets to collapse.
Remember, mining for crypto – or even buying crypto – isn’t like trading the stocks; it’s not about a quick sale. Crypto mining is about growing an asset portfolio that can be liquidated at opportune moments in the market or if the organisation needs to release funds.
However, working with Cudo Donate takes a significant portion of the risk out of the equation. We merely harness the combined computing power of your organisation and that of your supporters to mine the currencies that will yield the best possible return on investment. At the end of each day you take your cut of what was mined.
Does mining cryptocurrency cannibalise existing fundraising efforts?
Not in the least.
Cryptocurrency mining is an entirely new approach to fundraising.
At present your organisation relies on some, if not all of these revenue streams:
- Government funding
- Monthly donations
- One off donations
- Charitable events
- Sponsored events
- Corporate donations
- Gift Aid
- Donations to be sold
None of these will be affected by your organisation and your supporters lending spare processing power to mine for cryptocurrency.
We struggle to foresee a situation under which government funding will be affected as cryptocurrency, or earnings generated by cryptocurrency, falls under capital gains tax so it’s seen as an asset rather than funds.
More importantly, even if every one of your supporters downloaded the app tomorrow and set it running – which would be amazing – the likelihood of your monthly donations disappearing as a result is highly unlikely.
Those motivated enough to give regularly will see mining as a cheaper way to give more, but we are also tapping into those supporters who wouldn’t normally donate – either through lack of interest, lack of means or who don’t want to ‘just give money’.
These supporters don’t care about you less than your die hard advocates; they are just less inclined towards philanthropy. Chances are they would much rather ‘do something’ to raise money rather than set up a monthly transaction.
By encouraging your supporters to mine on your behalf through using a desktop app or a web page miner, they are raising money on your behalf for doing what they were going to do anyway.
However, they get the tangible proof of their efforts: a desktop app that shows them how they are making a difference to your organisation.
There will be a small increase in energy consumption but those few pence of electricity can represent pounds to your organisation. If you can effectively leverage your entire supporter base to mine cryptocurrency on your behalf the result would be utterly transformative.
As a charity, all you need to do with your cryptocurrency is cash it out.
Crypto mining is essentially a passive form of fundraising. All they need to do is download an app or click a button on your website to transform people’s lives.
Could Mining Cryptocurrency Deter Supporters?
If any of your supporters have a particular objection to helping you mine for crypto then they simply don’t have to.
Even the web page miner only starts working when website visitors interact with it.
There is a lot of negative press around crypto but remember – fiat currencies are used in illegal transactions every day. Counterfeiting and fraud costs the global economy billions every year.
Safety is often a concern, but it needn't be.
Crypto is as open to everyone as the dollar or sterling. Unfortunately, that means occasionally the wrong people get their hands on some, but that doesn’t make it tainted or worth avoiding. If anything the more you mine the more it can be used for positive change.