Cryptocurrency is increasingly becoming a buzzword, but there is a clear divide between charities that are embracing it and charities that don’t understand it. Here we outline everything you need to know.
_______________________________________________________________________

In an era defined by digital transformation, charities are increasingly exploring innovative ways to engage donors and diversify income streams. One of the most significant developments in recent years is the adoption of cryptocurrency as a means of donation. From Bitcoin to Ethereum and beyond, digital currencies are reshaping how charities operate, fundraise, and connect with a new generation of tech-savvy supporters.

What is cryptocurrency?
Cryptocurrency is a form of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments and central banks, cryptocurrencies operate on decentralised networks based on blockchain technology—a distributed ledger that records all transactions across a network of computers.
Popular cryptocurrencies include Bitcoin, Ethereum, and XRP, among thousands of others. These digital assets can be traded, stored in digital wallets, and increasingly, donated to charitable causes.

Why are charities turning to cryptocurrency? The motivations behind the growing adoption of cryptocurrency by charities are as diverse as they are compelling. At the forefront is the opportunity to engage a new donor demographic. According to The Giving Block’s 2024 Annual Report, there are now over 580 million cryptocurrency users worldwide. This vast, digitally native audience—often younger and less likely to engage through traditional giving methods—represents a significant untapped resource for the third sector.

Another key driver is tax efficiency. In jurisdictions such as the UK and the US, crypto donations are typically treated as “no-gain, no-loss” transactions. This means donors are not liable for capital gains tax when donating appreciated crypto assets, making it a highly tax-efficient way to give. For high-networth individuals and savvy investors, this adds a compelling financial incentive to support charitable causes through digital assets.

Cryptocurrency also offers global reach. Unlike traditional banking systems, which can be slow and costly—especially for cross-border transactions—crypto enables nearinstantaneous international donations with minimal fees. This is particularly valuable for charities operating in multiple countries or responding to global crises.

Embracing cryptocurrency can also significantly enhance a charity’s public image. By adopting innovative technologies, charities position themselves as forward-thinking and adaptable.

This not only appeals to tech-savvy donors but can also attract media attention and new supporters who value modern, agile approaches to philanthropy. “With the cryptocurrency market valued at over $3 trillion, it’s important that we remove donation barriers, enabling donors to give in the form that is easiest and best suited to them,” Harvie explains.

Which charities are accepting crypto donations?
A growing number of charities are embracing cryptocurrency, either directly or through platforms like The Giving Block and JustGiving.

"There was once a time when the idea of fundraising online was difficult to imagine – now 25 years on from the launch of JustGiving, we have enabled over £7 billion to be raised for good causes,” says Pascale Harvie, President and General Manager of JustGiving. “In recent years there has been a surge in the use of cryptocurrencies globally, and our decision to enable such donations aligns with JustGiving’s culture of innovation and readiness to embrace new technologies for good,” Harvie adds.

Alzheimer’s Research UK Alzheimer’s Research UK has partnered with The Giving Block to accept over 150 types of cryptocurrency. The charity has already received thousands of pounds in crypto, including a single Ethereum donation worth $4,500 (roughly £3,313).

Hope Rescue
Hope Rescue, an animal charity in Wales, became one of the first in the region to accept crypto donations. “We believe innovative solutions are the key to helping us make sure we can fulfil our mission of saving the lives of stray, abandoned and unwanted dogs,” the charity said at the time of its announcement.

CARE International
CARE has piloted blockchain-based programs in Kenya and Ecuador, using stablecoins like BUSD to distribute aid and promote economic recovery.

British Red Cross
The British Red Cross accepts over 70 types of cryptocurrencies through its website, including Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC). Donations under £5,000 can be made directly online, while larger gifts are processed via direct contact to ensure compliance with ethical and regulatory standards. “Donate via crypto and join our community of Humanity HODLRS,” the charity states on its donation page, blending humanitarian appeal with crypto culture. The charity has integrated crypto giving into major appeals, including the Gaza Crisis Appeal, Ukraine Crisis Appeal, and Myanmar Earthquake Appeal, showing a commitment to using digital assets for global humanitarian response

RNLI (Royal National Lifeboat Institution)
The RNLI was one of the first UK charities to accept Bitcoin, launching its crypto donation option back in 2014. It partnered with a payment processor to convert donations immediately into GBP to avoid volatility. The charity’s early adoption was seen as a bold move and helped spark wider interest in crypto philanthropy in the UK.

What are the benefits of accepting cryptocurrency?
The benefits are becoming increasingly clear as the sector explores new ways to diversify income and engage modern donors. One of the most immediate advantages is the potential for increased donations. Many crypto holders have seen substantial gains in their digital assets and are often more inclined to donate appreciated crypto rather than convert it to fiat currency, which could trigger capital gains tax. This creates a win-win scenario: donors can give more efficiently, and charities receive larger contributions.

“Since integrating cryptocurrency donations in November 2024, we’ve witnessed extraordinary acts of kindness, including a remarkable single £56,000 donation – the largest crypto contribution on our platform to date,” Harvie shares. “Additionally, cryptocurrency donations on JustGiving are, on average, worth ten times the value of traditional currency contributions, demonstrating the growing impact and generosity of crypto donors,” she notes.

Another compelling benefit is transparency. Because cryptocurrency transactions are recorded on a public blockchain, they offer a level of traceability and accountability that traditional financial systems often lack. This transparency can help build trust with donors, particularly younger generations who value openness and ethical stewardship of funds.

Speed and efficiency are also major draws. Unlike traditional banking systems, which can involve delays and high transaction fees—especially for international transfers—crypto donations can be processed quickly and at a lower cost. This is particularly advantageous for emergency appeals or global campaigns where time and resources are critical.

Finally, accepting cryptocurrency allows charities to diversify their income streams. In an increasingly uncertain economic climate, reducing reliance on traditional funding sources such as grants or direct debit donations can help build financial resilience. By embracing crypto, charities position themselves at the forefront of innovation while opening the door to a new generation of philanthropists.

What are the risks and challenges?
While there are many benefits, it’s also important to acknowledge the risks and challenges that come withadopting this emerging technology.

One of the most pressing concerns is volatility. Cryptocurrencies are notoriously unstable in value. For instance, Bitcoin’s price plummeted from over £53,000 in 2021 to around £16,000 in 2022. Such dramatic fluctuations can severely impact the value of donations and complicate financial planning for charities that rely on predictable income streams.

Security is another critical issue. Digital wallets and cryptocurrency exchanges are frequent targets for cyberattacks. Without robust cybersecurity measures in place, charities risk losing valuable assets to hacking or fraud. This makes it essential for organisations to invest in secure infrastructure and staff training.

There is also considerable regulatory uncertainty. Cryptocurrency laws and tax regulations are still evolving in many jurisdictions. Charities must stay informed and compliant with the latest legal requirements, which can vary significantly between countries and even regions.

The pseudonymous nature of blockchain transactions also presents compliance challenges. While transactions are recorded on a public ledger, the identities of donors are not always easily verifiable. This raises concerns around anti-money laundering (AML) and know-yourcustomer (KYC) regulations, which are vital for maintaining ethical and legal standards in fundraising.

“As with any step forward, we are aware that there may be some reservations,” Harvie acknowledges. “However, thanks to our partnership with The Giving Block, who are leaders in crypto philanthropy, we have strict policies that verify the validity and source of donations. On top of this, cryptocurrency that is donated via JustGiving is instantly converted to fiat currency before being distributed. This eliminates the need for charities to be concerned about holding or handling crypto and any price or market volatility.”

What does the Charity Commission say about crypto?
In response to the growing interest in cryptocurrency among charities—and the risks that come with it—the UK Charity Commission has updated its financial guidance to help trustees navigate this complex terrain. The revised guidance outlines several key areas of focus for organisations considering or already accepting crypto donations.

First and foremost is risk awareness. Trustees are expected to understand the unique challenges associated with digital assets, including extreme price volatility, the potential for theft, and the evolving regulatory landscape. The guidance also stresses the importance of due diligence. Charities must thoroughly vet any platforms or thirdparty providers involved in handling crypto donations to ensure they are secure, reputable, and compliant with relevant laws.

Equally critical are internal financial controls. The Commission advises that robust systems must be in place to safeguard digital assets, just as they would be for traditional funds. This includes clear policies on how crypto is stored, accessed, and converted. Transparency and accountability are also essential. Trustees must ensure that all crypto-related activities are clearly documented and reported, maintaining public trust and regulatory compliance.

What does the future of crypto fundraising look like?
The future looks promising. Experts predict that over $10 billion in crypto will be donated to charities over the next decade. As platforms like JustGiving and The Giving Block simplify the process, more charities are likely to join the movement.

Alzheimer’s Research UK is already planning crypto-funded events, including a fully crypto-sponsored London Marathon team in 2025.

Cryptocurrency presents both a challenge and an opportunity for the charitable sector. While the risks are real—volatility, security, and regulatory concerns—so too are the rewards. By adopting clear policies, leveraging trusted platforms, and staying informed, charities can harness the power of crypto to drive social impact. in the digital age.

---