Much of the growing interest in bitcoin and other digital currencies has focused on individual financial gain. At the same time, there is an exciting trend toward leveraging so-called cryptocurrencies for philanthropic purposes. Not only are a number of charities accepting bitcoin and other digital currency donations, but new philanthropic entities are emerging which utilize digital tokens and their underlying cryptography-based technology, called blockchain, in exciting and innovative ways:

  • Bitcoin fundraising--Over the last few years, a number of charities and foundations have been trialing bitcoin donations. Once established, an online “wallet” allows charity institutions to accept bitcoin and other cryptocurrency donations and to exchange them for fiat currencies such as the dollar.
  • Charity Coins-Beyond cryptocurrency donations and tracking, a number of social purpose digital coins have been created to support specific nonprofit programs and endeavors.
  • Crypto-foundations-Another new arrival in the cryptocurrency for charity space is the “crypto-foundation.” One anonymous bitcoin investor, who first bought bitcoin when prices were in the single digits, established a foundation to give away 5,057 bitcoins — $86 million at the time.
  • New Opportunities--One obvious benefit from the rise in crypto-philanthropy is the availability of new revenue streams for charity. Because direct-to-charity bitcoin donations are relatively easy to manage, bitcoin presents an attractive first-step opportunity for the giver and receiver.

Read the full article about cryptocurrency disrupting philanthropy by Paul Lamb at Medium.