Crypto For Charity

Crypto. Oh man.

Just reading the word stirs up a mix of mystery, hype, and low-level panic in most of us.

A few years ago, Julie and I dipped our toes into crypto. Without going into the full story, let’s just say we were lucky to walk away with our original investment. I haven’t gone back since - and I don’t plan to anytime soon.

And honestly, that makes sense. I don’t have the time, expertise, or frankly the interest to figure out how to navigate that market. I know most of you, especially in your roles as charity leaders, don’t either.

But I’m also reminded that it still could matter deeply to those we serve. That’s why I asked my friend Bob Collins to share a guest post this week. He brings the clarity, confidence, and calm we need when it comes to understanding crypto donations.

Don’t tell him I said this, but he’s basically a savant when it comes to global investments, complex assets, and charitable giving. He may not be able to instantly count the number of toothpicks on the floor Rain Man style, but he would absolutely know what to do if someone wanted to donate limited partnership units in a hedge fund or NFTs with embedded royalties. (And yes, I just got an ice cream headache over my left eyebrow.)

Before his work in the charitable world, Bob was Managing Director and Co-Chief Investment Officer at Goldman Sachs Asset Management, leading a 54-person team responsible for investing $36 billion in European and global equity portfolios.

So yeah… a conversation about the future of blockchain is just a Tuesday for him. Bottom line: Bob knows how to make this clear and actionable.

‍Here’s Bob, with five of the smartest and simplest answers you’ll read this year on crypto giving.

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Greetings friends of J.Paul! Grateful to be joining you all with these thoughts on crypto giving.

Over the past few years, I’ve had many conversations with charity leaders about crypto. Some are excited. Many are cautious. Most just want clarity.

Crypto giving still feels mysterious to a lot of nonprofits. It’s fast-moving, full of headlines, and loaded with technical jargon. But underneath it all, the questions leaders are asking are actually very practical:

• Is this safe?
• Is it worth our time?
• Who do we trust?

At TrustBridge, we don’t think every charity needs to become a crypto expert. But we do believe every charity should be prepared to receive gifts in the ways their givers want to give. That includes non-cash assets like cryptocurrency.

Here are five questions I hear most often - along with simple advice you can act on right away.

‍1. Is this just a trend, or is crypto giving here to stay?

‍Short answer: It’s not going away.Crypto giving has cooled a bit since its 2021 peak, but the underlying technology and its donor appeal remain strong. What’s more important: some of your most forward-looking givers already hold crypto in their portfolios. They’re asking you to catch up - not the other way around.

‍Advice: You don’t need to bet on the future of blockchain. But you do need to be open to how your givers want to give today. Like stocks, real estate, or business interests - crypto is simply one more form of non-cash giving.‍

‍2. How do we accept crypto donations safely and legally?

‍This is the number one question we hear about crypto at TrustBridge.The good news: You don’t have to handle the crypto directly. Trusted intermediaries (like a Donor-Advised Fund) can process the donation, issue receipts, and convert to fiat currency - all with proper compliance.

‍Advice: Don’t try to DIY this. Work with a trusted partner. You don’t need to be an expert - you just need to be well-connected.‍

‍3. Will crypto gifts cause a PR problem or mission distraction?

‍This is a fair question, especially with the volatility and media noise surrounding crypto.But here’s the deeper truth: most givers who donate crypto aren’t trying to make a statement. They’re simply giving from where their wealth is held. If your policies are clear and your communication is thoughtful, it doesn’t need to be a distraction.

‍Advice: Stay focused on your mission. If a giver wants to support your work through a crypto gift, you don’t need to explain or defend the asset class - only your purpose and integrity in stewarding it.

4. Who in our ecosystem is actually able and willing to give this way?

‍Most crypto donors are under 50. Many are entrepreneurs. Almost all are digitally fluent and tax-savvy. They often hold donor-advised funds, give appreciated assets, and look for efficiency in their giving.

‍Advice: You don’t need to promote crypto giving to your whole database. But do make sure your major gift officers and board members know it’s an option - and can connect crypto-inclined givers to the right partner.‍

‍5. If we receive a crypto gift, what should we do with it?

‍In most cases, you’ll never “hold” the crypto directly.Your giving partner (e.g. a DAF provider) will liquidate it on your behalf and send you the converted funds - this is the easiest path. That said, if you decide to accept the crypto yourself you should have a policy in place that outlines how non-cash gifts are received, acknowledged, and valued.

‍Advice: Establish gift acceptance policies (or update your existing one) that includes how you will handle cryptocurrency donations and if a partner will be involved. Make sure your finance and donor development teams know what to expect. And keep your language focused on non-cash giving - not just crypto.‍

‍Final Word

‍If you're thinking about promoting crypto giving - or a giver has asked about it - don’t go it alone. TrustBridge Global Foundation exists to make strategic giving across borders (and across asset types) simple and compliant for charities around the world.

Before accepting any crypto gift, we strongly recommend you reach out to an experienced partner who can walk with you through the process. We're here to help.

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Thanks so much, Bob.

Such helpful advice. And I, for one, am grateful to know that we now have a solid response when a giver says, “I’m thinking about donating crypto.”

Simple: call Bob.
(Or maybe start with one of the other fantastic folks on the TrustBridge team... we don’t want to wear him out.)

Praying you all have a great week. If you have specific questions about crypto - or any other complex assets -  feel free to send them my way. I’ll pass them along to Bob and his crew at TrustBridge for thoughtful, trustworthy guidance.

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‍If you haven't taken advantage of some of the resources I've created to help major gift fundraisers, take a look now!  Initial calls with me are free and "no strings attached".  Sometimes folks feel like they need to wait and not 'bother' me until they have a pressing issue.  No need for that...just make the call. 🕺

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* JappaFry Writer - A freely available AI tool that draws from over 175 pages of original teaching, storytelling, frameworks, and strategy from my 30 year career in major gift fundraising.

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* Breakthru Podcast - Interviews with high net worth givers about how we as fundraisers can get better at inviting them to the party.  And audio readings of Breakthru Blog posts.

‍Before getting to the PAID stuff: My opinion is that no small ministry with a tight budget should be spending more than $3-5k (total) for major gift coaching/consulting.  Most of you will be good-to-go spending far less than that.  This was a major issue for me when I was a frontline fundraiser - major gift consultants were an expensive 'black-box-of-confusion' for me.  That stops now.

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Finally, be sure to connect with my colleague Ivana Salloum.  She's super awesome and can help with scheduling and access to resources, etc.

I look forward to hearing about your good work!

Blessings,