Why Not-For-Profits Should Update Crypto Donation Policies

Not-for-profit (NFP) organizations are constantly adapting to how donors choose to give. In recent years, cryptocurrency has emerged as a viable and increasingly popular donation vehicle. While not every NFP will receive crypto gifts, proactively deciding whether to accept them, and how to handle them, is essential. Updating your gift acceptance policy is the first step toward readiness, transparency, and risk management.

Gift acceptance policies serve as a roadmap for staff and board members, outlining the types of donations your organization is prepared to accept and under what conditions. With cryptocurrency becoming more mainstream, many donors view it as an asset comparable to cash or securities. If your policy doesn’t address crypto, your organization may face delays or uncertainty when a donor offers such a gift.

By explicitly stating whether you accept cryptocurrency, you eliminate confusion, establish consistency, and set expectations with donors. Even if your organization decides not to accept crypto, documenting that decision demonstrates foresight and transparency, qualities that build trust with stakeholders

If your organization chooses to accept cryptocurrency, the next decision is whether to hold the asset or liquidate it immediately. Crypto markets are notoriously volatile, with values fluctuating dramatically in short periods. For many NFPs, the safest path is to convert crypto donations to cash shortly after receipt, protecting the gift’s value and reducing risk

Recent accounting guidance adds urgency to this decision. Under current standards, NFPs may treat crypto gifts as cash contributions but only if the asset is liquidated promptly, typically within a few days to a week. Holding the asset longer may require different accounting treatment, similar to other noncash contributions

Clear policies protect both the organization and its donors. From an accounting perspective, classifying crypto gifts as cash contributions (when sold promptly) simplifies financial reporting and supports compliance with audit and tax standards. For donors, your policy provides clarity on how their gift will be handled and valued, reducing potential misunderstandings

Even if crypto donations seem unlikely today, NFPs are wise to plan ahead. Donor demographics are shifting, and younger generations are more likely to hold and give crypto assets. Having a policy in place positions your organization as forward-thinking and ready to meet donors where they are

Whether you choose to accept crypto directly or through an intermediary, your policy should reflect the technical, financial, and compliance considerations unique to digital assets. This includes defining acceptable cryptocurrencies (e.g., Bitcoin, Ethereum), setting liquidation timelines, and outlining donor verification protocols

At Clark Schaefer Hackett, we work with not-for-profits to strengthen governance, refine accounting practices, and prepare for emerging trends in philanthropy. Updating your gift acceptance policy to include cryptocurrency is a practical way to manage risk while staying responsive to new opportunities in charitable giving.