Should Your Non-Profit Accept Bitcoin for Donations?
Have you heard about Bitcoin? It’s been all over the news lately, and many non-profits have been asking whether or not they should accept Bitcoin for donations. In this article, I am going to present a quick introduction to what Bitcoin is, and help you decide if your non-profit should accept Bitcoin donations.
First, a little disclosure: I am not an accountant or attorney. You should consult your accountant or attorney regarding how to process and account for Bitcoin donations as well as how to prepare receipts for Bitcoin donors prior to accepting them at your organization.
What is Bitcoin?
The short answer for those who are non-technical is that Bitcoin is a new digital “currency” or “store of value” that exists on computers and on the web. Bitcoins are worth a certain amount of money, can be used in many places to buy and sell things, and can be traded in for US Dollars, Euros or other forms of currency at an ever-changing exchange rate.
Bitcoin is a little like gold. It is worth something, can be used to buy things, or can be sold for dollars, euros, pesos or other currency.