Cryptocurrencies have surged in popularity in recent years. The Financial Conduct Authority estimates that 2.3m adults in the UK now hold crypto-assets, and NatWest claims that 20% of its 19 million customers hold cryptocurrency. As a result, crypto philanthropy is also on the rise.
This represents a new fundraising opportunity for charities, with the potential to tap into a different network of donors and possibly a sizeable income stream. In its 2021 annual report, the crypto-giving platform the Giving Block recorded an average cryptocurrency donation of $10,455, and stated that the average value of a cryptocurrency donation was 82x larger than the average online cash donation. you got mossed shirt
There was also a recent well-publicised case of a Scottish animal charity, which received a cryptocurrency donation of approximately £90,000. Many charities may now be looking at this activity as a potential source of fundraising which they had not previously considered.
However, it’s a fast changing and technical area and there is little explicit guidance for charities. It is therefore difficult for trustees to assess whether accepting cryptocurrency donations is worth the time, resources, and – perhaps most importantly – the risk.
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