Eversince its inception, bitcoins have been used in different ways and for different purposes. From personal to business transactions, with its lower transaction costs and efficiency, many opt to use bitcoins. As an open-source payment platform, it allows greater flexibility when it comes to usage.
Now, even nonprofit organizations are accepting bitcoin donations. Among the growing number of organizations accepting bitcoins is an environmental advocacy organization, Greenpeace. The organization is a renowned environmental charity all over the world. Employing more than 2,400 people along with 15,000 volunteers, its move to finally accept bitcoin decisions is strategic. The international organization has finally announced that they are now accepting bitcoin donations in the United States. This is in partnership with BitPay.
New Sources of Funds
By accepting bitcoin donations, the organization is thrusting towards new sources of funds. Greenpeace only accepts donations from individuals as they do not get donations from governments or corporations. With credit card companies charging around 3 to 4% when it comes to transaction fees, bitcoins offer a better alternative. Instead for going for the traditional payment provider, people will opt for bitcoins as they are cheaper and more efficient.
In using bitcoin, Greenpeace gets to have all of the donations without any deduction unlike in the traditional payment option. Bitcoin payment providers like BitPay and Coinbase do not charge any fee for non-profit organizations. According to non-profit account manager of BitPay Elizabeth Ploshay, the company aims to have nonprofit organizations like Greenpeace to use bitcoin where they can get 100% of what individuals donated.
BitPay was chosen by Greenpeace as its partner in payment processing. Ben Kroetz, director of online strategy of Greenpeace USA said that the established reputation of BitPay is one of the reasons why the organized chose BitPay as its bitcoin payment processor. With the company’s reputation, it is easier for Greenpeace to accept bitcoins thereby enabling them to open new markets and donors.
Huge Potential
Bitcoin is a viable option for charities and other non-profit considerations considering its potential benefits. With the bitcoin platform offering cheaper and more efficient compare to traditional payments, organizations get to have these benefits. However, there are still nonprofits that are not yet accepting bitcoins.
But the good news is that the trend is continuously changing and heading towards a more positive outlook. Just earlier this month, another charitable organization, United Way Worldwide which was able to raise $5 billion in 2013, became the largest charity to accept bitcoins. The organization accepts bitcoin through their partner bitcoin payment processor- Coinbase.
Aside from Greenpeace and United Way Worldwide, Wikipedia alongside other organizations with open-source platform have decided to accept bitcoins.
There might be concerns regarding the use of bitcoins like price swings and security concerns. Yet, in weighing the benefits versus the costs, the benefits definitely outweigh the latter. In the case of nonprofit organizations, they can definitely gain a lot of benefits in accepting bitcoin donations. It allows them to have more opportunities and to further increase their donations as bitcoin offers cost effective and fast payment processing.