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The History of Crypto in Nonprofit Organizations There are more than 50 million cryptocurrency users, according to The Giving Block, an organization that helps nonprofits accept cryptocurrency donations. Some of them, particularly those early adopters of cryptocurrency who now have highly appreciated assets, are looking to donate in order to reduce their tax burden, make an impact, and drive more interest in cryptocurrency.

Nonprofits are taking notice. Since the launch of the UNICEF Cryptocurrency Fund, Fabian and his colleagues have heard from a number of international NGOs asking for advice on how to do something similar. Nonprofits considering cryptocurrency fundraising can learn from some of the early adopters — on which currencies to accept and whether to hold or convert the donations.

Disaster response organization Humanity Road became interested in cryptocurrency fundraising after learning about the Pineapple Fund. In December 2017, an anonymous donor set a goal of giving away 5,057 bitcoins, worth $86 million at the time. The donor announced the Pineapple Fund in a post on discussion website Reddit, and within six months, the funds were distributed

UNICEF can now receive, hold, and disburse digital currency built on blockchain technology with the launch of the UNICEF Cryptocurrency Fund.

Building on its past work with blockchain, UNICEF will use cryptocurrencies — beginning with Bitcoin and Ether — to fund open source technology that benefits children and young people, including startups in the blockchain space.

A growing number of nonprofit organizations accept donations in cryptocurrency, but UNICEF is the first U.N. agency to accept “crypto as crypto without converting it,” said Chris Fabian, who co-founded UNICEF's Innovation Unit and leads UNICEF Ventures.

Save the Children, which helps protect children from the effects of war and violence, has announced today the relaunch of its cryptocurrency fundraising capability effective 3 December, 2019. The global humanitarian organization is now able to accept multiple digital assets in automated fashion through its website including bitcoin core (BTC), bitcoin cash (BCH), ethereum (ETH), zcash (ZEC), litecoin (LTC) and the gemini dollar (GUSD).

The organization initially accepted bitcoin donations in 2013, in response to Typhoon Haiyan that struck Southeast Asia and devastated the Philippines. By accepting multiple cryptocurrencies, Save the Children is now offering more supporters with diverse cryptocurrency portfolios the ability to support the charity in a tax efficient way. The organization explains that the IRS classifies cryptocurrency donations as property, meaning they are not subject to capital gains tax and are tax deductible on the donor’s tax returns.