Over the past decade, charities have seen a decline in donations. Cryptocurrency introduces new donors and ways to get more donations. So how can charities take advantage? This post will discuss how charities can receive donations in Bitcoin.
What You’ll Need In Order to Receive Bitcoin
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In order to receive Bitcoin donations, there are two components you’ll need. The first component is a crypto wallet. A crypto wallet is an application that allows users to store, send, and receive cryptocurrency.
The second component is your wallets address also known as your public key. A public key is a large group of alphanumeric characters that are used to encrypt data. The public key is similar to a user account name and is the identifier for a coin’s destination.
When two users make a transaction with bitcoin, a public key is needed to be shared in order to complete a transaction. This public key is what doners need to send BTC to a charities crypto wallet.
There are few ways to get both crypto wallets and public keys. One of the main ways is through a Hot (Online) or Cold (Offline) BTC Wallet.
Hot Bitcoin Wallets
A simple search online and you can find various companies offering a list of Hot wallets. Each sporting a different feature. Often crypto wallets are connected to some sort of exchange. where users can convert fiat currency into the Cryptocurrency of their liking.
For charities, public keys are going to be the most important feature. Donors’ donations can be received without revealing their identity.
Below we listed a few popular Hot wallets users like to use and you can receive your donations from.
Coinbase is a popular name in the Crypto space and is widely used across the world for its exchange. Coinbase is also known for its easy to use Wallet.
Great for beginners looking to hold multiple types of cryptocurrencies and digital tokens. Has an easy registration and verification process.
Users have access to both desktop and IOS / Android app versions. There is no fee for receiving Cryptocurrency as Coinbase incurs and pays network transaction fees.
Type of Wallet: Hot
Purchase cost: Free
Highlights: Beginner friendly, Easy to use interface, Easy setup & verification process
Exodus is another cryptocurrency wallet designed to support multiple crypto coins. It has a very simple user interface and includes a built-in exchange.
Exodus is available for both desktop and mobile applications, great for intermediate users. The company and team are very active, with consistent updates to the UX.
Exodus does not charge fees for sending or receiving cryptocurrency.
Type of Wallet: Hot
Purchas Cost: Free
Highlights: Beginner Friendly, Great customer service, huge variety of cryptocurrencies.
Charities will need to apply for a Business wallet in order to access this feature.
It’s a straightforward approach offering a clickable button that integrates with any donation web page. Charities receive what donors give without suffering under the volatility Bitcoin may have.
Once doners donations are sent, the settled Bitcoin will be converted into your choice of Fiat Currency.
Overall Bitpay is making it extremely easy for charities to accept Bitcoin. Important feature for 501 (c) nonprofit organizations. This blockchain donation feature is something that we have not seen with other wallets.
Type of Wallet: Hot
Purchase Cost: Free (Business Account)
Highlights: Easy to integrate block donation wallet, Best for 501 (c) nonprofit organizations.
A Cold Wallet is a cryptocurrency wallet that allows users to store digital assets offline. This sort of digital wallet is stored on a platform that has no connection to the web. Which means they’re less vulnerable to cyber-attacks.
The opposite can be said for Hot Wallets, as these sorts of wallets are connecting to the internet. Cold wallets do have some limitations when compared to Hot wallet.
Most Cold Wallets aren’t directly connected to exchange and support a limited type of cryptocurrencies. Below we listed a popular Cold Wallet charity can use to receive donations from.
Ledger Nano X
Ledger offers some of the most reliable Cold Wallet for storing Cryptocurrency. They are two types of wallets users can choose from, Ledger Nano S or Ledger Nano X. Will focus on Ledger Nano x as it comes equipped with Bluetooth and more storage for apps.
The Bluetooth feature can sync with IOS or Android device via the mobile app. The app is live software that allows you to monitor your Bitcoin holdings.
Type of Wallet: Cold
Purchase cost: 119.00
Highlights: Bluetooth connectivity, supports over 1,500 cryptocurrencies, convenient mobile app user interface.
Receiving Donations in Bitcoin Tutorial
There are few methods charities can use to receive Bitcoin from donors. Most of these methods can be used on web platforms like WordPress.
We’ll demonstrate some of the easier options to accept Bitcoin donations to your crypto wallet.
No matter the wallet of your choosing the setup is similar. So, this tutorial will use Coinbase to guide us through the process. Start by creating a Coinbase account. You only need an email address, users can sign up, and then confirm their email address.
Setup a strong password, nothing that can be guessed easily.
Once logged in, the main dashboard will be present with your account’s information. Here you’ll find information like your Bitcoin holdings or exchange. Finding your Bitcoin address is easy, at the top of the footer’s dashboard, click on “Receive”. You’ll then see your Bitcoin address. You can leave the tab open or make note of the Bitcoin address (Public key).
Grab the alphanumeric code and add the Bitcoin address to the page where you’re asking for BTC donations.
Note: By default, wallets automatically generate a new address for every transaction. It’s done to protect all other transactions connected to your account. Users can still utilize a single address to accept donations.
Users can also utilize a free Bitcoin or Code Generator. Simply download the image generated and add it to your donation page.
Using GoUrl Method to accept Bitcoin Donations
There are couple more options charities can implement to accept donations via Bitcoins. GoUrl is an automated payment processing system similar to PayPal. It allows for Bitcoin and other cryptocurrency processing.
Charities can create a GoUrl account and add the WordPress plugins under the requirements section to their site.
Upon completion, you’ll see a donation payment box. The setup isn’t completely straightforward, but it can get the job done. We included a video below of someone going through the process of adding GoUrl to their WordPress site.
Final thoughts & Recommendation
For charities looking for a specified clickable donation button, we recommend using Bitpay. Not only is it an easier integration, but cryptocurrency donors will like how fast and secure it is.
You don’t have to worry about Bitcoins volatility and accounting is much simpler.
As you can see from some of our options accepting BTC donations isn’t rocket science. Although there are components like a public key and wallet you’ll need to make the process smooth.
Hopefully, this post helps your donors give more for your cause.