Moustapha Hammoud and Polly Green have written in Philanthropy Impact Magazine on the rise in cryptocurrency donations to charities and its implications.
Cryptocurrency donations to charities reached their highest recorded levels in 2021, with recent research indicating that crypto philanthropists give more frequently and in larger donation sizes than traditional donors.
Contributing to the Philanthropy Impact Magazine's transition to net-zero and concomitant issue, Polly and Moustapha discussed the potential risks of accepting cryptocurrency donations and outlined what organisations need to consider.
They wrote: “Trustees who act in breach of their legal duties can be held responsible for the consequences that result from such a breach and for any loss the charity incurs as a result. This may include regulatory action through the Charity Commission, which can require that a trustee reimburses a charity for any loss of funds. If trustees are considering the use of cryptocurrencies, they must therefore be mindful of their legal duties as set out above.”