You probably see cryptocurrencies like Bitcoin, Ethereum and Dogecoin popping up on social media trends and news headlines every day. Some are more established and widely marketable than others, but people are increasingly buying and holding cryptocurrencies for fun, for investment purposes or as a hedge against inflation. But what is it anyway? A recent Journal of Accountancy article defined it as “a digital medium of exchange that can be used for purchasing, selling and storing value, but it is not backed by a sovereign government.”
The good news is nonprofit organizations do not have to understand all the theory and technology behind cryptocurrency to gain the potential benefits of accepting this form of appreciated property as a donation.