Hey All! I’m featured in the 14th issue of the NTEN: Change journal is out, and this quarter is all about fundraising.
From Bitcoin, to crowdfunding, to the tricky discussion about overhead – articles cover some of the latest topics in digital fundraising, and opportunities for nonprofits.
This issue is packed with actionable ideas, inspiring interviews, and tips that your organization can use to get ready for the end of the year, if not sooner!
>>Read the June 2014 issue! (online or mobile device)
Here’s a run down of their feature articles:
- Reinventing the Ask: Fundraising in the Digital Age, by Josh Hirsch, The Weiss School and Dave Tinker, CFRE, ACHIEVA
- The Missing Middle: Neglecting Middle Donors is Costing Nonprofits Millions, by Alia McKee, Sea Change Strategies
- Crowdfunding: Tomorrow’s Fundraising Models Today, by Miriam Kagan, Kimbia and David J. Neff, PwC Digital and Lights. Camera. Help.
- Changing the Conversation About Overhead, by Rick Cohen, National Council of Nonprofits
- Bitcoin: A Fundraising Digital Disruptor, by Jason Shim, Pathways to Education
They also go behind the scenes with Kiva, GlobalGiving, Urban Ministries of Durham, and FundsforNGOs, and the Surfrider Foundation reveals the key ingredient that’s needed to complement digital tools for effective advocacy and engagement.
In case you missed this…..here’s our Bitcoin for Nonprofits Webinar in all it’s glory!
Bitcoin is a digital peer-to-peer currency that has been gaining momentum globally. In 2013, Bitcoin had 3.4 million online mentions and many companies, as well as nonprofits, have begun experimenting with emerging digital currencies. Nonprofit Bitcoin experts, David J. Neff and Jason Shim, will help you understand how the digital currency can benefit your nonprofit.
David J. Neff helped PricewaterhouseCoopers (pwc) with an online consumer survey to gather awareness, attitudes, and behaviors about Bitcoin, and he will share some of the findings. What should nonprofit tech, web, digital, and executives know about Bitcoin and its potential impact? What are the risks and benefits? PwC’s point of view is that Bitcoin can be part of an innovative strategy for products, services, and payment systems.
Jason Shim led the Bitcoin implementation for Pathways to Education Canada in 2013, and has advised numerous other nonprofit organizations on how to integrate digital currency as a donation channel. Jason will explain the process of how Pathways integrated Bitcoin and will discuss common challenges around executive buy-in, legal and financial compliance, donation tracking, and security. In this webinar, you will also learn about a funding opportunity that will donate $1,000 USD to your nonprofit if you implement Bitcoin as a donation channel.
- A basic understanding of how Bitcoin and other digital currencies work
- An understanding of the potential impact of Bitcoin and other digital currencies
- How your nonprofit can prepare for Bitcoin
- Learn about a funding opportunity that will donate $1000 USD to your nonprofit if you implement Bitcoin as a donation channel
Who should attend:
This webinar is geared toward nonprofit staff members that work in finance, operations, and fundraising. This webinar is ideal for those that run payment and database systems, as well as payment integrations. It is also a good fit for nonprofit folks who work on digital strategy, and online fundraising.
A Minnesota nonprofit called Spare Key, (which we featured earlier this week) has hired Roerick Sweeney as Director of Crypto currency Development, Markets and Social Engagement.
Spare Key may be the first charity in the nation to hire someone specifically for the purpose of taking advantage of the emerging new crypto currency economy.
“Since late last year Roerick has been providing us with technical advice and assistance, as well as a direct ear to the ground to the crypto currency economy,” said Erich Mische, Executive Director of Spare Key. “Because of his efforts we’ve been able to accept several forms of crypto currency since early 2014, and look to continue to expand our capacity to solicit and accept various forms of crypto currency moving forward.”
Spare Key provides rental and mortgage grant payments to families with critically ill or seriously injured children in the hospital. Since 1997 the organization has supported nearly 2,200 families in Minnesota, North Dakota, South Dakota and Wisconsin with nearly $2.2 million in housing grant assistance.
Sweeney will begin by expanding Spare Key’s network of potential donors, as well as expanding the platform of the organization’s capacity to secure new forms of crypto currency.
“Ultimately, our goal is to make a seamless commercial transaction between donors that contribute to Spare Key in the form of Bitcoin, Dogecoin, Vertcoin, and many other charity-focused altcoins and then to make rental and mortgage grant payments on behalf of families by using a donor’s preferred crypto coin,” said Sweeney. “It’s pretty exciting to see the culture of crowd sourcing and micropayments applied to the operations of an established non-profit like Spare Key.”
The organization also has a blog dedicated to crypto currency issues at http://sparekeycryptocurrency.blogspot.com “This is a brave new world,” Mische. “As early adopters we’re excited to see where this journey leads us. As a small non-profit we are eager to find creative and innovative new ways to offer portals to supporters to engage with our mission and support our efforts to help families “Bounce and not Break”. This is a bold effort to see where leaning forward on an evolutionary new economic model could well become revolutionary for non-profits across the globe.”
This is the last in my series of interviews about digital currencies for nonprofits. This is my interview with Erich of Spare Key. Spare Key helps Minnesota, North Dakota, South Dakota and Wisconsin families with housing grant assistance while their seriously ill or critically injured child is in the hospital. For 16 years, Spare Key has helped families “Bounce and not Break” with the gift of time. Read on to see what amazing things he is doing with the Dodge community.
What are the risks for a nonprofit that wants to take Bitcoin? What are the benefits?
It depends on your approach. For Spare Key, our goal is to receive Bitcoin in the same way we would accept cash dollar donations. We are not looking to sell commodities or invest the dollars. We take donor dollars and we plow them back into making rental and grant payments for families with critically ill or seriously injured children in the hospital.
The risk is when you make the decision to hold onto Bitcoin as some form of investment as a non-profit. Bad idea.
Or, if you decide you are going to conduct commercial transactions such as selling t-shirts and coffee cups and the like as a fundraiser. If you purchased a cup for $5 with the intention of selling it for $10 and accepting Bitcoin as a form of payment — you have to be cognizant of the fact that if you received the $10 value in Bitcoin at 10:00 in the morning, by the time you convert that into cash at the end of the day it may have a value less than the original $5 you paid for the cup.
The benefits are, endless. By being an early adopter we’ve made it clear that we bullish on all things crypto currency. We are reaching new audience segments that are not traditional donors. They, in turn, are raising our profile and awareness with their networks and turning them onto our mission and program. The infrastructure for doing this is essentially, at this stage, sweat equity. That’s a pretty good ROI for something that a small non-profit like Spare Key can embrace.
With the IRS ruling that Bitcoin is not a currency, should nonprofits be scared to deal with it at all?
Ask me that question when we start getting enough $50,000 USD in Bitcoin!
For Spare Key, and other non-profits, I am not sure that this is the issue to be worried about at this point in time. When we start seeing a significant inflow of Bitcoin we will actively consult with our tax advisor to make sure that we’re properly accounting for what we receive and offering the appropriate guidance to donors that wish to support us in that way.
How would a nonprofit even approach to start taking Bitcoin for donations? Who would they hire to enable it with their current systems?
I am nearly 51 years old and have the technological skill of a newborn baby. Accepting Bitcoin is as easy as accepting cash. We didn’t have to hire anyone to set it up. At the outset we simply set up an account with BitPay. Embeded their link to our website which is WordPress. And, began accepting Bitcoin which was then converted to USD and transferred to our Bank Account. Easy in, Easy out.
Today we accept Bitcoin through BitPay and other currencies as well through Moolah, and with our own folder on our current fundraising drive, “Doge4Housing”
All this being said, I know what I don’t know and taking our efforts to the next level is important. That is why we hired what we believe to be the first ever Director of Crypto Currency Development. Roerick Sweeney is my eyes and ears on this initiative and he understands the ins and outs in a way that would confuse me and distract us from our core efforts in this way. It also sends a signal that Spare Key is serious about being involved in the crypto currency economy. He knows the community well and understands what they place value in, and he understands the technological issues inside and out.
If a nonprofit wanted to experiment with taking dodgecoin, how would they start? Events? Galas? Mobile campaign?
I would say that non-profits should engage with it the same way they would cash money. We accepted Bitcoin at our annual gala, The Groove on March 1st. Find an event. Stage an action. And, to steal a corporate America slogan: Just Do It!
How long before we see wide acceptance (in small to mid-size nonprofits) of Bitcoin or other digital currencies?
I think the “Golden Ticket” is whether the transaction circle can be completed and that’s Phase Two of our efforts in this arenea.
If we can not only accept Bitcoin and other crypto currency, but then make rental and mortgage grants on behalf of families we serve in that same currency form to banks and rental companies, we will have expanded the crypto currency economy exponentially. If the most conservative agents of our economy — banks, financial and lending institutions — can find their comfort level in accepting and engaging in transactions with digital currency then it will go a long way towards achieving wide acceptance.