For several years, charities have been struggling to find ways to capture the attention of younger generations. The need is more pressing as the “giving gap” – aging donors continuing to give at a much higher rate than younger generations – widens. If not addressed, charities will face a funding shortfall when older donors can no longer give.   

It is becoming increasingly clear that engaging younger donors is essential to the future of the charitable sector. Providing innovative, new ways to give that are in line with younger generations’ interests is one way charities can close that gap and increase the percentage of younger donors giving to their cause.  

Cryptocurrency is growing in popularity among all Canadians, but particularly among younger generations. According to a recent poll conducted by KPMG, 13 percent of Canadians have purchased crypto assets such as bitcoin or ethereum, the two most popular digital currencies. Younger Canadians are the biggest investors, with 24 percent of 18- to 24-year-olds having purchased crypto assets.   

This interest in cryptocurrency is gaining traction in the realm of charitable giving as well. In its 2022 Giving Report, CanadaHelps noted that in the last 12 months 4.5 percent of Generation Z and 6.1 percent of Millennials have already made donations of cryptocurrency.  

The question for many charities when it comes to cryptocurrency is ‘how do I begin’. Some charities have opted to develop their own process for accepting crypto donations including establishing their own crypto wallets, selling individual cryptocurrency donations on the open market, and handling all the other administration related to collecting, selling, and receipting the donations themselves. There are also a few solutions that take care of some or all of this work for charities, but they often involve complex steps and significant fees to get started.  

CanadaHelps has created an end-to-end, easy-to-use, and affordable solution for accepting cryptocurrency donations. This solution also removes the need to manually process cryptocurrency donations. For an interested donor, making a cryptocurrency donation is as easy as using a credit card or donating securities. For the more than 25,000 charities that already fundraise with CanadaHelps, the solution can be implemented on their website in minutes, with no set-up fees, and low, non-commercial rates only when they receive a donation. For charities not yet using CanadaHelps, it takes only a few minutes to create a free account at forcharities.canadahelps.org. Once a cryptocurrency donation is made, the donation is converted to cash and the proceeds are disbursed to each charity.  

However, before considering accepting crypto donations, it is important that charities establish a well-thought-out communications plan. 

The best approach to ensure optimum results should include both a general and targeted marketing strategy. Charities can start by segmenting cryptocurrency marketing in terms of specific groups that would be interested in this type of news. They can send a targeted message to younger donors or consider social media platforms, such as Instagram and TikTok where younger donors have a strong presence. 

At the same time, charities should also consider issuing a general announcement in email newsletters and direct mail to inform all donors about accepting gifts of cryptocurrency, and add crypto donations as an option on the “Ways to Give” page of their websites.  

At a time when charities are facing unprecedented demand and declining donation revenue, enabling cryptocurrency donations will make it even easier for younger donors to support the charities they care about. Given the growing popularity of cryptocurrency among young Canadians, it is also an important step to reverse troubling giving trends. 

CanadaHelps is Canada’s leading destination for online donations and fundraising. No matter how big or small, charities can rely on CanadaHelps for customizable donation forms, ticketed events, peer-to-peer fundraising, and a full donor management system. Visit forcharities.CanadaHelps.org to find out how your organization can join the 26,000 Canadian charities who depend on CanadaHelps every day.