Stablecoins, Crypto, and the Nonprofit Sector

Read time: 3 min

👋🏾 Hey! I’m Sid and this is The Philanthropy Futurist, a weekly advice column preparing you for the future of the nonprofit sector. Each Friday, I tackle reader questions about measuring impact, driving growth, and managing your nonprofit.

This Week’s Newsletter at a glance:

• Stablecoins, Crypto, and the Nonprofit Sector

• Philanthropy News From This Week

• Sid’s Book Recommendation

Stablecoins, Crypto, and the Nonprofit Sector

I first heard about Cryptocurrency back in 2016 when I worked for State Street. Over the past several years, this new kind of money has changed how people give, spend, and move funds around the world. I’m sure by now most of you know what Cryptocurrency is, but in case you don’t— Cryptocurrency (aka Crypto) is a digital form of money that isn’t controlled by any government or bank.

Instead, it functions on something called the blockchain, which is a public, secure system that allows people to send funds directly to each other, instantly and transparently.

At first, Crypto may have seemed like a trend for nerds like myself. But for many years now, it's proven to be useful where traditional financial systems fall short.

That said— Crypto does have 1 major downside, and that’s volatility. Its value can (sometimes) swing wildly, making it hard for Nonprofits to predict how much a donation will be worth by the time it’s used. That means a $10,000 gift in Bitcoin may end up being worth only $8,000 by the time it’s ready to be spent.

But thankfully, there’s a fresh solution on the come up, and it might just shift the way we give. It’s called: Stablecoins

Stablecoins are a type of Cryptocurrency built to avoid the price swings that other digital currencies (like Bitcoin) are known for. They’re called “stable” because they’re designed to maintain a stable value relative to a specific asset, like the U.S. dollar, for example.

This means Nonprofits can now experience the benefits of Cryptocurrency without the dramatic price swings. So a donation sent today will still be worth the same amount tomorrow, no surprises.

For Nonprofit leaders, this opens up powerful new possibilities. A Stablecoin donation from a supporter in Brazil can reach a campaign in Kenya in seconds. No wire transfers. No waiting days. No hidden fees.

As we look ahead, Stablecoins could become a key tool in global fundraising— especially for those serving communities that are underserved by banks or living in unstable economies.

What You Can Do Next

1. Educate yourself: Get familiar with how Stablecoins and Cryptocurrencies work, their pros & cons, and why they matter for fundraising

2. Start the conversation internally: Share what you’ve learned with your team & board, and align on a strategy for adding Crypto Giving as a donation option (if you haven't already)

3. Check in with your giving platform provider: Ask what Crypto and Stablecoin options are available through your current donation tool/s

4. Engage and inform your community: Educate your supporters on how Crypto Giving works— and why it’s a secure, future-forward way to support your cause

The blending of digital currencies and social impact represents more than tech advancement— in my opinion, it's a step towards democratizing philanthropy globally.

Those who embrace this shift today will lead tomorrow's future of giving.

Until next time y’all! ✌🏾

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Philanthropy News From This Week

• LinkedIn’s Ad Grants program is giving away Free LinkedIn Ads (Apply ASAP!)

• Congress Passes Major Tax Package, Nonprofits Impacted

• Pittsburgh Zoo & Aquarium receives $10 million from Anonymous Donor/s

• Podcast: Reid Hoffman’s $10 Million Contest to Restore Trust in Institutions

Sid’s Book Recommendation

Each week, I recommend a book or film that has impacted my life in a positive way. My recommendation this week is:

Unlocking the Customer Value Chain by Thales Teixeira & Greg Piechota

This book explores how digital disruption is fundamentally changing global industries, not just through new technology, but by shifting business models to better serve evolving customer (or donor) needs. It introduces the concept of decoupling, where startups or organizations break apart the traditional sequence of activities (the "value chain"), and offer new & more efficient ways of doing things. Learn more.

How You Can Help