# CAF report considers value of Bitcoin to charities

- Link: https://fundraising.co.uk/2015/05/06/caf-report-considers-value-of-bitcoin-to-charities/
- Published: 2015-05-06T07:02:13+01:00
- Author: Howard Lake

Charities Aid Foundation (CAF) has published a report which examines the opportunities
and risks presented to charities which choose to use Bitcoin and other cryptocurrencies.

_Giving a Bit(coin): cryptocurrency and philanthropy_ is part of CAF’s Giving Thought
series of discussion papers.

## Transparency

Bitcoin could yield even greater transparency for charities. Because each Bitcoin
is unique and all transactions traceable, donors could track exactly how their money
has been spent.

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Such transparency could, on the other hand, encourage donors to become more prescriptive
about how even small donations may or may not be used. This could prove an administrative
challenge to charities.

## Reduced currency charges

Cryptocurrencies, according to the report, could help charities reduce the costs
of currency exchange when transferring funds between countries.

## Wealthy donors

Some early adopters of Bitcoin have generated substantial funds from the currency,
so charities that accept Bitcoin might appeal more to these wealthy innovators.

Bitcoin is of course not the only cryptocurrency. There are at least 559, according
to [Coinmarketcap.com](http://www.coinmarketcap.com/) in February 2015.

The 15-page CAF report even explores the possibility of creating a purely social
currency which could only be spent on projects aiming to achieve social good.

## Charities accepting Bitcoin

Very few [charities currently accept donations via Bitcoin](https://www.fundraising.co.uk/2015/01/09/bitcoin-changing-face-non-profits/).
In the USA the Water Project raised over $30,000 in Bitcoin donations, and the [RNLI](https://www.fundraising.co.uk/2014/09/11/rnli-early-experiences-accepting-bitcoin-donations/)
raised £2,000 in six months.

Rhodri Davies, leader of the Giving Thought policy programme at the Charities Aid
Foundation and author of the report, said:

> “It’s clear that there are a lot of opportunities for charities when it comes 
> to using cryptocurrencies, and some organisations have already begun to take advantage
> of them to raise money. The possibilities for charities really being able to tackle
> the age-old problem of transparency, helping donors see exactly how their money
> is being spent and the impact it’s making is profound.
> “However, we shouldn’t lose sight of the fact that these kinds of currencies are
> still in their infancy, and charities should be wary of the potential risks that
> may arise as they develop.”

_Image: [Bitcoin logo](http://www.shutterstock.com/pic-166883648/stock-photo-white-d-bitcoin-symbol-on-orange-background.html)–
by Mom91 on Shutterstock.com_