How to launch a successful crypto crowdfunding campaign

Fundraising is one of the most essential activities in supporting nonprofits in innovating the market. It helps expand their reach and drive awareness about special causes. At the same time, nonprofits can achieve long-term sustainability through proper fundraising campaigns by budgeting more effectively and navigating financial challenges.

While there are numerous ways to start a fundraising campaign, crypto campaigns have started to gain popularity due to the increasing opportunities these decentralized assets provide. Investors and traders have many crypto to buy from the market, from established coins like Bitcoin to innovative projects like Ethereum. Therefore, they become potential donors for nonprofits that can work with a fast-growing industry of prospective investors.

There are many benefits to using crypto for crowdfunding, but some regulation limitations might pose difficulties to startups. So, let’s learn more about it. 

What are the advantages of crypto in crowdfunding?

Having multiple sources of revenue as a nonprofit is necessary to continue operating and making a difference in the industry. That’s why tapping into the world of crypto can propel the brand into the mainstream due to the:

• Increasing number of crypto users worldwide;

• Growing interest in investing in FinTech organizations;

• Donation platforms that support the acceptance of multiple cryptocurrencies;

• Tax benefits for donations in cryptocurrency;

What are the steps of a successful crowdfunding campaign?

Crowdfunding campaigns can be challenging to design and operate, especially when it comes to accepting cryptocurrencies. However, you can follow a few steps as guidance:

• Define the purpose of the campaign by brainstorming ideas, including goals of reaching specific donors or having a story that resonates with them;

• Establish the method of encouraging donors to donate, including giveaways (NFTs) or leveraging data-driven insights that support your campaign;

• Promote the crowdfunding campaign on social media using hashtags, collaborations with influencers and the use of impact data for engagement;

• Build a community surrounding the goal of your campaign, such as small investors, FinTech startups or blockchain-based groups;

Is crowdfunding or peer-to-peer fundraising better?

Crowdfunding and peer-to-peer fundraising are similar in a way, but they differ in terms of approaching donors. For example, crowdfunding runs online as it reaches a large audience, which is beneficial for crypto since most investors and traders are present on social media. Therefore, using this method helps boost visibility, especially when using a specific platform.

On the other hand, peer-to-peer fundraising is an umbrella term for supporters who run small campaigns on your behalf through key messages or calls to action. This method is also efficient since it reaches your supporters’ peers, which increases the chances of donors. However, you may need to evolve your networking since knowing people is key to expanding your campaign.

How to improve your campaign

Whether you choose fundraising or peer-to-peer campaigns, taking advantage of other events in the community is important to attract people’s attention. In the crypto industry, several movements have gained traction recently on social media, such as NFTuesday or Crypto Giving Tuesday, which represent days in which crypto users invest in nonprofits. These are the best opportunities to make your campaign known and your message heard among crypto investors.

In addition, it would be best to time your campaign smartly to spread awareness more efficiently.

Your digital campaign might be more successful if you link it with timely and newsworthy issues. Conveying a legitimate sense of urgency also helps, especially when it comes to social causes. In the end, aligning your campaigns with viral trends on social media and crypto can boost your crowdfunding.

Navigating challenges as a nonprofit

Although accepting donations in crypto seems easy due to the ease of sending and receiving transactions, organizing crowdfunding can be difficult, especially from the organizers’ perspectives. For example, some may believe crypto donors are hard to find, which is why they don’t consider them potential audiences in the first place.

However, many people prefer to donate in crypto rather than cash due to tax incentives. At the same time, they prefer donating pseudonymously or anonymously but still share the story’s crowdfunding on social media to attract more attention to the subject.

Another issue is startups being afraid of the risks of cryptocurrency. While it is true that these digital assets are exposed to volatility, meaning their prices fluctuate based on different factors, donating crypto at the right time can be more than enough to sustain a project. Moreover, donors are more likely to support a nonprofit when the market is bullish (growing) so that it can benefit from the best crypto rates.

Is the crypto industry invested in donating?

Besides supporting growing projects such as FinTech, the crypto community has done wonders for others by donating its assets. Charities and organizations have expanded the variety of coins they accept, which is why cryptocurrencies like Dogecoin, for example, became known for being helpful tools in donations.

In this case, social movements like The Water Projects have received Dogecoin as donations for a few years now through The Giving Block platform, helping those in need access clean drinking water. The American Cancer Society is another organization receiving Dogecoin, and many more causes have reached the crypto public through the #DoOnlyGoodEveryday social media movement.

Important crypto figures also donated and encouraged others to do so. Vitalik Buterin, the creator of the Ethereum project, frequently donates to research and technology startups. Still, he’s mostly popular for donating $500,000 to the Animal Welfare Charity through a sale of the Neiro CTO token. He also donated Shiba Inu tokens to other causes, so he’s one of the most prominent figures in the industry to spread awareness about the importance of donating.

Final considerations

Crypto crowdfunding campaigns can mark the start of a new era for startups and NGOs, as they can tap into a new target audience of donors. Crypto investors have increasingly leveraged their assets to support social causes and invest in technology and healthcare, which is why more startups should research methods to attract more crypto donors. Crypto donors not only receive tax benefits but also actively contribute to real-life causes.