As the biggest cryptocurrencies ebb and flow in value, notching record highs one week before retreating the next, they’re increasingly becoming bigger sources of revenue for charities. However, the number of charities accepting the virtual currencies, known for their volatility, remains limited.
Bitcoin, the world’s largest cryptocurrency, hit nearly $69,000 for the first time in its history earlier in November, roaring back after sinking below $30,000 during the summer. The value of ethereum, the second biggest cryptocurrency, also hit a record high.
Both cryptocurrencies have dropped from their record levels after helping push the overall market cap of cryptocurrencies past $3 trillion, according to CoinGecko pricing. As of Friday, CoinMarketCap, another popular measure, listed the market cap at $2.6 trillion.
So far this year, Fidelity Charitable, the nation’s largest grantmaker, has received more than $274 million in cryptocurrency contributions — nearly quadruple its prior record of $69 million in 2017, a company spokesperson said. And the cryptocurrency donation platform Engiven said last month it accepted what it called the largest single Bitcoin donation known to date: a $10-million Bitcoin gift to an undisclosed faith-based organization.
Many large charities and international aid agencies, such as The American Red Cross and Save the Children, have set up mechanisms to accept cryptocurrencies or are using platforms that help them convert them into cash right away. But smaller organizations — which make up the vast majority of registered nonprofits in the country — are attempting to figure out how to accept these currencies, or if it even makes sense for them to do so, said Rick Cohen, the chief communications and operating officer at the National Council on Nonprofits.
“For a lot of organizations, it feels a little bit scary because it’s not the contribution of dollars that they’re used to,” Cohen said.
“It’s not something that’s…
