Patrick Duffy, director of integration, Lupus Foundation of America, Inc.
Hundreds of millions of dollars have been donated in cryptocurrency in the last year. For non-profit organizations, it's time to accept that the blockchain has arrived, and it's here to stay.
The Lupus Foundation of America now accepts cryptocurrency. Even in this market crisis, in the last six months we have seen nine figures in encrypted assets poured into charitable organizations. One standout is Ripple (XRP), which brings corporate social responsibility (CSR) to a level unmatched by most Fortune 500 companies, with three huge charitable contributions (among others) title holders:
● $ 4,000,000: the Ellen Degeneres Wildlife Fund
● $ 29,000,000: donors choose
● $ 50,000,000: 17 universities and universities
This trend is not new. At the turn of the year, we saw the Fidelity Charitable report that had managed to raise $ 69M in crypto by itself by the end of FY2017. All of this sounds good and good, but there's a problem:
Less than 1% of non-profit organizations accept donations for cryptocurrency. Here's how your non-profit organization can embrace blockchain to maximize your impact:
1. Work with Blockchain Innovators
Historically, non-profit organizations have been seen as Luddites, dragged and kicked into each successive technological era. Couple the propensity of omnipresence to the blockchain community with a few traditional nonprofit organizations that accept cryptocurrency, and what is achieved is to encrypt investors who create their own 501c3 whenever they want to do something impactful. Furthermore, innovators who devise social good blockchain applications are doing the same, rather than collaborating with existing organizations in their respective areas of social impact. Regardless of the attribution of fault, it is time to close the gap.
The very nature of blockchain requires a better class of charitable organizations: improve data transparency, cut administrative costs and reduce transaction load
Our first step at the Lupus Foundation of America (LFA) was to open the wallets to accept the cryptocurrency. We have recognized that all this is based on the transformation technology that is blockchain. This is why we have gone beyond the acceptance of cryptography, launching our Blockchain Initiative to conduct awareness-raising activities towards the main blockchain stakeholders for guidance and partnerships that could improve our organization. For us, blockchain data management could mean better-informed medical professionals, improved clinical trial design and put power back into the hands of patients when it comes to their health data. For all non-profit organizations, this could mean betting on donors' experience, on incentivized engagement chains and on the most consummate tool for authentication of impact since the advent of the Internet.
2. Accept cryptocurrency donations
The Lupus Foundation of America (LFA) decided to accept cryptography because we recognized a trend that extends well beyond the perimeter of cryptocurrencies; there is a culture of prodigious social impact and largely ignored within the blockchain community. For those who think that accepting encrypted donations is tantamount to madness, LFA accepts our cryptocurrency donations through a personalized solution of The Giving Block. Convert crypto to USD upon receipt and we receive dollars in our bank account without a payment processor. In other words, it is painless how to accept a credit card.
I ask you to consider for a moment that only fifteen years ago non-profit organizations were skeptical about credit card donations. In a blink of an eye, their superior convenience made them omnipresent and at night every nonprofit accepted them. Cryptocurrency will not be different, but with additional tax levels, benefits of convenience and security for donors. Krypton donors pay no capital gains tax and the total gift is tax deductible. Because of this dramatic tax benefit for those who donate cryptography, any wealth stored in the cryptocurrency activity class is completely inaccessible to most non-profit organizations. He thinks that cryptography is the safest way to give, and it is not so far-fetched to think that this could become the preferred option for donors.
3. Blockchain Corporate Social Responsibility (CSR)
It was our experience that organizations in this space are searching for legitimacy, warmly greeting conversations about sponsorships and partnerships beyond. Blockchain is in the midst of a public relations crisis of epic proportions. Companies in this space that are seeking legitimacy are making corporate social responsibility investments in an echochamber by sponsoring conferences and social impact activities within their community. This is obviously an important and necessary aspect of culture, but it should be diversified. Traditional nonprofit organizations that offer these shelter organizations from the cryptographic crises of PR will receive vital funding and, in turn, will have partners that are likely to be much more collaborative than the Fortune 100 media institution.
The very nature of blockchain requires a better class of charitable organizations: improve data transparency, reduce administrative costs and reduce transaction burden. In addition to seeking partnerships for blockchain use cases, it is time for non-profit organizations to turn blockchain organizations into both acquired and non-acquired partners. We at LFA will continue to look for ways to grow partnerships with blockchain organizations, grow an encrypted revenue stream and make this technology work to help lupus sufferers. For the sake of the mission of your respective organization, I hope to see a paradigm shift while other non-profit organizations exploit this transformational technology and the powerful community that builds it.