Madison nonprofits are beginning to accept cryptocurrency

by Arthur · July 14, 2022

MADISON, Wisconsin (WMTV) –

NOW ACCEPTS CRYPTOCURRENCY

At The River Food Pantry, cash donations often come in the form of cash, credit or checks.

“We are fully operating on donations,” said Development Director Julie Wiedmeyer. “I think what we’re trying to do is make it as easy as possible to make a donation to The River and give people as many choices and ways to make those donations.”

Earlier this year, the food pantry expanded its online giving platform to accept cryptocurrency.

“We just wanted to be ahead,” Julie Wiedmeyer explained. “We wanted to be one of the first charities in this area to accept it.”

Unlike a government-issued currency that uses dollars or coins, crypto is a completely digital resource. People can buy, sell or trade them just like stocks or bonds. These transactions are supported by

To better understand how cryptocurrency works, Wiedmeyer bought a small amount of Bitcoin. She says it was the best way for her to understand the market and the stock market.

“It’s just another tool, like the stock market or other investments that people make,” Wiedmeyer said. “There are risks with them and there are rewards.”

Like cash donations, cryptocurrency donations to tax-free non-profit organizations are not subject to capital gains tax. In addition, cryptocurrencies are deductible. An investor can deduct the “fair market value” of your cryptocurrency donation, depending on how long you have held your cryptocurrency.

Although there has been no great interest in cryptocurrency donations to The River yet, Wiedmeyer says there is something other nonprofits should consider.

“It’s very early in the game and there is no need to rush in right now,” said Wiedmeyer. “I hope over the next few years we’ll see regular gifts coming in through cryptocurrency, so I think there’s something to start learning about.”

CRYPT COLLECTION EDUCATION

The Greater Madison Chapter Association for Fundraising Professionals is beginning to educate some of its members about digital currency donations.

Jen Davie, AFP Greater Madison Chapter Director, says many members feel anxious about accepting gifts like this.

“It’s just nerve-wracking to know that it’s not just dollars that come directly to us that we may have to do some sort of exchange of it to turn it into dollars that we can use for our missions,” Davie said. “Many of our fundraisers and employees do not feel that they are experts at accepting this.”

She says the biggest concern comes from an unfamiliarity with digital currency because of how new it is to many people.

“I know it’s been around a bit longer than we want to admit, but it’s becoming a form of currency that people are using,” Davie said. “Especially for a younger generation, they really want to give their gifts in that capacity.”

Non-profit fundraising teams never want to be in a position to reject a donation, both Wiedmeyer and Davie agree.

“When someone comes and says, ‘I want to give you a gift,’ our role as a fundraiser is to manage it and respect the choice they have made,” Davie said. “Because really every donation to a mission in our community helps to lift everyone.”

“We want to make sure we meet people where they are and keep up to date on the new ways to donate,” Wiedmeyer added.

To help train other fundraising teams, the Association of Fundraising Professionals Greater Madison Chapter is organizing a webinar “Crypto for Good” on July 19 from 7 p.m. 12:00 to 13:00. To register or learn more about the course, click HERE.

CRYPTOCRACY

The cryptocurrency market has fallen drastically in recent months.

Brad Chandler, director of the Nicholas Center for Corporate Finance and Investment Banking, taught one of the first cryptocurrency classes at UW-Madison. He advises his students, and anyone who wants to learn more about crypto, to understand the fluctuations in the market.

“These currencies tend to be very volatile,” Chandler said. “Bitcoin can go from all-time highs to the lowest levels that can really go down.”

Despite today’s market, Chandler believes that cryptocurrencies provide healthy economic competition compared to other currencies.

“While I’m wary of Bitcoin and its ability to hold value in the future, I think it’s exciting that it’s created a lot of competition, and it will hopefully benefit the average consumer,” Chandler said.

Chandler says there are many who study the market and work to learn more about digital assets.

“We see that large banks have cryptocurrency teams that publish cryptocurrency research and help their customers gain access,” he added. “There is little right now, but if this is a sector that continues to have endurance, and if it gets bigger, you will see more of it in the future.”