Wise Giving Wednesday: Cryptocurrencies for Charities?

Bitcoin, the cryptocurrency that started back in 2009, is getting a
mountain of attention lately, this is mostly due to its meteoric
increase in value, particularly in the past several months. Starting
with a value of less than a dollar when it first arrived, an individual
bitcoin skyrocketed to a high of $19,000 on December 18^th.
This digital currency, however, can be divided out so that one can send
just a fraction of a coin in making a transaction or purchase. It’s no
surprise that bitcoin has attracted an increasing number of investors
seeking to benefit from its growing gains. 

Some early investors have become millionaires based on the coins
increased value. One anonymous investor, who claims to have amassed many
millions from bitcoin, recently established a fund to donate $86 million
of this amount to various charities: www.pineapplefund.org. 
A charitable organization applies for support and, if approved, receives
a donation in bitcoins. Prior to the Pineapple Fund, a number of
charitable organizations had already been accepting bitcoins
as a donation option for contributors. 

There are some cautions, however, for charities and donors to consider
regarding bitcoins and other cryptocurrencies: 

• Volatile value and possible bubble. Bitcoin value
  can rise or drop dramatically in a short period of time, sometimes
  in just a few hours. Some critics are now claiming that bitcoin is a
  bubble that will soon
  burst.  For charities that accept bitcoins or other
  cryptocurrency, this suggests there are potential risks in holding
  on to the donation for a long period of time. 

• SEC advisories. On December 11^th, the
  Securities and Exchange Commission (SEC) issued a public
  statement on cryptocurrencies and initial coin offerings
  that recommends that investors and others find out more about such
  opportunities before they become involved and ask critical questions
  such as whether trading data is available and the identity of the
  individuals involved. 

• Criminal activity.  As reported
  by CNBC and other media, criminals have used digital currencies to
  move money between countries or transact other business since they
  are harder for law enforcement agencies to track. 

Of course, there are potential issues with all forms of fundraising and
donation options. Each charity needs to decide, on its own, what is best
for them given the facts and circumstances.  And certainly
contributors should feel free to make donations in bitcoins or other
currencies for those charities willing to accept these gifts. 

Before this blog ends, as we approach December 25^th we also
want to wish everyone a Merry Christmas and a Happy Hanukkah which ends
its celebration on December 20^th this year. 

Video of the Week 

As part of our Building Trust Video Series, we are pleased to provide a
video that features Mitchel Rosenzweig, Chief Financial Officer of the
Jewish National Fund a (BBB Accredited Charity) which
promotes, educates and advocates for community and environmental issues
surrounding Israel and the world. Among other things, it plants trees in
the desert, builds parks, creates new communities, bolsters Israel’s
water supply, and helps develop arid-agriculture techniques.  

Recent Reports 

We are always working with charities to publish or update reports for
donors. Visit Give.org or local
BBBs to check out any charity before giving. Our recently evaluated
charities include:

• American Kidney Services
• ChildFund International
• March of Dimes Foundation

Finally, remember to let us know by going to https://www.give.org/ask-us-about-a-charity1/ if
you are  interested in seeing a report on a charity not on the list
and we will do our best to produce one.   

H. Art Taylor, President & CEO
BBB Wise Giving Alliance