COVID-Relief Fund in May, the disclosure of the
transfer drove down the token’s price 50%. Two
months later, Sandeep Nailwal, the aid group’s
founder, indicated only $20 million had been used
due to complexities with both converting the
cryptocurrency and complying with government
regulations in India regarding the assets. (The
value of Shiba Inu has since surged in price ).
The volatility in the crypto world is the reason why
some giving platforms and donor-advised fund
sponsors, like Fidelity Charitable, convert them
into cash right away. Pat Duffy, the co-founder of
the popular cryptocurrency donation platform
The Giving Block, said though it’s rare, some
nonprofits who use the platform choose to hold
the assets.
Fidelity places the cash from crypto in a donor-
advised fund, which allows donors to get tax
deductions upfront before distributing any of the
money to a working charity.
“You can have a situation where somebody
donates cryptocurrency, and if we don’t sell it
right away, it could lose 20% of its value in a day,”
said Tony Oommen, a vice president and charity
planning consultant at Fidelity Charitable.
“Or It could go the opposite direction,” Oommen
added. “But we don’t try to speculate on that.”
Fluctuating prices aren’t the only concern.
The environmental advocacy organization
Greenpeace stopped taking Bitcoin earlier this
year, citing environmental worries associated with
mining the digital currency. Despite this pullback,
James Lawrence, the CEO of the donation
platform Engiven, says he believes the majority of
nonprofits will begin accepting crypto donations
within the next five years.