NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, May 12, 2014

Bitcoin is often discussed as the backbone of the online drug trade, an interesting speculative investment, or simply a futuristic way to order pizza. But proponents say the cryptocurrency also has great potential for the nonprofit world.

So far, nonprofits accepting Bitcoin donations report seeing contributions from early adopters whose initial investments in the currency skyrocketed in value, to the particular benefit of charities that appeal to Bitcoin’s technolibertarian roots.

“As far as the Bitcoin community is concerned, from what I’ve been able to tell thus far, they seem to be really interested in funding more technology-related things or more liberty-type, freedom-type things,” said Connie Gallippi, the founder and executive director of the BitGive Foundation, which coordinates and facilitates Bitcoin giving tied to the environment and global health. “And I think that it’s sort of indicative of the early adopters and the sort of core Bitcoin community where it originated.”

In late fall 2013, when the digital coins were valued at about $1,000 each, the angel investor, onetime Libertarian candidate for California state senate and Bitcoin evangelist Roger Ver donated $1 million worth of the currency to the pro-laissez faireFoundation for Economic Education.