What charity crypto fundraising is, how choose a crypto fundraising platform for cryptocurrency donations to your charity, crypto risks, benefits and cryptocurrency regulatory guidance, as well as useful links to crypto fundraising guides. This guide has been formatted to comply with existing crypto fundraising guidance, so can be used both as a crypto toolkit and as a policy template for your charity.
There aren't that many charity crypto fundraising platforms but cryptocurrency donations may represent a way to bring new wealth into the sector. There are not yet many charities using crypto fundraising platforms to accept cryptocurrency donations, so potentially a real opportunity for those who do.
Things to consider or to ask potential providers when choosing a crypto fundraising donation platform:
Crypto fundraising is still new and there are not yet a significant number of crypto fundraising platforms. Here are some of the best known crypto donation platforms.
Typically, these platforms process cryptocurrency donations on a charity’s behalf, converting it to fiat currency before transferring it to the charity. Alternatively, a charity might have its own crypto-wallet, so it holds cryptocurrency itself. Note - I found these using Internet research, have not used these myself and their inclusion does not represent either a recommendation, nor endorsement.
The Financial Conduct Authority (FCA) estimates that in the UK 2.3m people hold crypto currency, and NatWest has claimed that some 20% of its 19 million customers hold cryptocurrency.
In its 2021 annual report, the crypto fundraising platform the Giving Block recorded an average cryptocurrency donation of more than $10,000, and claimed the average value of a crypto donation was 82 times greater than an online cash donation. There is also the now famous case of a Scottish animal charity, which received a cryptocurrency donation of £90,000.
Crypto fundraising donations often support similar causes to normal donations. Crypto donors to charity are motivated by the same things we all are and just choose to donate in a different way. However, their demographic is very different. It’s been estimated that the per capita income of crypto investors ($111,000 in the US) is higher than average. And their age tends to be lower than those donating traditionally (38 years old vs 64 years old).
It seems likely that this is not primarily existing donors changing the way in which they donate but at least partly new wealth flowing into the charity sector.
To help you assess if crypto fundraising is right for your charity, we've assessed the benefits, risks and limitations is using it.
Crypto fundraising isn't for every charity but, for those who do, there is real potential to secure more donations.
There are significant risks associated with crypto fundraising that charities must be mindful of and manage.
Here is the crypto information we've managed to source that's been published by regulators and others.
There doesn't seem to be all that much regulatory guidance on crypto fundraising but here's what I managed to find.
The application of data protection law in crypto and blockchain systems, where control is both decentralised and distributed and where personal data is often permanently embedded in public transaction records, raises important issues for transparency and the exercise of information rights in crypto fundraising, amongst other things. We will either take appropriate action to ensure we remain data protection compliant or not use such systems.
Use Funding Finder, to find a huge range of grants and Help Finder to find lots of free fundraising support and also companies that make product/financial donations. There's also Data Finder, plus 8 online health checks, 100+downloadable funder lists and the Quality Mark.
I am not an accountant, nor a lawyer and no advice can be applicable to all organisations, in all circumstances, so this resource is no more than a guide to understanding. I've summarised the regulatory guidance and augmented this with my own experience and Internet research, but I am not competent to provide professional advice. I have included links to the source guidance to enable you to check this yourself and, if you think you might need professional advice, use Help Finder to find pro bono support.