Cryptocurrency – opportunity or risk for charities?

Earlier in the week the Fundraising Regulator published a note weighing up the pros and cons when it comes to accepting cryptocurrencies as donations -   https://www.fundraisingregulator.org.uk/more-from-us/news/cryptocurrencies-nfts-and-future-fundraising

There is potential opportunity here as it opens the door to a new source of funding from new donors.

There are, however, also drawbacks:

  • Lack of transparency – may be used to hide the identity of the donor and/or illegal activity, potentially making it more difficult for charities to verify the source of funds.  
  • Volatility – as value can change significantly overnight, some charities may prefer for the donation to be converted into money.
  • Environmental impact – some charities, particularly those linked to the environment, are concerned about the carbon footprint.

In summary, although it is right for charities to see the opportunity, they should consider the above points before engaging in cryptocurrency.

 

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