New America and the International Center for Not-for-Profit Law (ICNL) Release First of its Kind Study on Philanthropic Giving and Digital Assets

The Blockchain Trust Accelerator (BTA) at New America and the International Center for Not-for-Profit Law (ICNL) released a new report on the use of virtual currencies to support civil society. Virtual Currency Donations: Navigating Philanthropy’s New Frontier provides the first comprehensive analysis of how philanthropists and civil society organizations can leverage donations in virtual currencies while remaining compliant with local regulations. The report found that regulatory frameworks examined in the study were generally amenable toward virtual currency donations and identified broad trends in digital charitable giving across ten countries.

“Donations of virtual currency represent an important area of growth for philanthropy and civil society,” said report co-author Tomicah Tillemann, founder of the BTA and the Digital Impact and Governance Initiative at New America. “Organizations need greater clarity around how to solicit, receive, and report contributions of digital assets. This groundbreaking research addresses key questions facing donors, recipients, and regulators as they work to harness the significant potential of digital currency to support the work of civil society worldwide.”

To explore this emerging field, the BTA and ICNL brought together an interdisciplinary team of public policy scholars, non-profit experts, and attorneys to create an international survey of how different jurisdictions are regulating virtual currency charitable donations.

“Virtual currency is an increasingly important philanthropic asset,” said Douglas Rutzen, President of ICNL. “This report provides valuable guidance to philanthropists, civil society organizations, and their legal counsel. It also provides useful international information to policymakers crafting laws and regulations governing virtual currency donations.”

The report determined that regulators in many of the jurisdictions surveyed are advising civil society organizations interested in accepting virtual currency donations to adhere to existing guidelines governing other non-cash donations such as art or property. When questions arise, civil society organizations receiving donations of virtual currency should document the value and means of donation, disclose to tax authorities and regulators, or decline a contribution if there are serious concerns about conflicts of interest, regulatory considerations, asset management expertise, donation valuation, or other issues that might typically prompt an organization to decline a contribution.

The research is essential reading for philanthropic organizations, civil society groups, donors, policymakers and regulators weighing the benefits and challenges of accepting charitable donations of virtual currencies. The report covers the regulatory landscapes in ten countries: Australia, Bermuda, Canada, Denmark, Malta, Singapore, South Africa, Switzerland, United Kingdom, and the United States.

To read the report in its entirety, click here.

About the Blockchain Trust Accelerator at New America

The Blockchain Trust Accelerator (BTA) is a practice area of the Digital Innovation and Governance Initiative (DIGI) at New America. Established in 2016, BTA brings together governments, technologists, civil society organizations, and philanthropists to create blockchain powered pilots that benefit society. BTA projects and research help organizations and institutions increase accountability, ensure transparency, create opportunity, and build trust in core institutions. For more information, please visit www.newamerica.org

About the International Center for Not-for-Profit Law

The International Center for Not-for-Profit Law (ICNL) works to improve the legal environment for civil society, philanthropy, and public participation in over 100 countries. Founded in 1992, ICNL develops long-term relationships with partners from civil society, government, and the international community to enhance philanthropy and civic space. For more information, please visit www.icnl.org