Access Philanthropy

Mary Anne Welch

Cryptocurrency and Philanthropy

by

An AP Philanthropy Landscape Report
May 2022

Stories about cryptocurrency have been showing up in business journals, consumer magazines, daily newspapers, and nonprofit publications. In March, some funders acknowledged one of the only ways to get relief money into Ukraine was via cryptocurrency. We sent AP Researcher Laura Wilson to find out more. She looped in folks from ImpactMarket and Alight (formerly American Refugee Committee) to talk about implications of Bitcoin,  Ethereum, and other crypto donations for nonprofits. You can read her report

New Ways of Giving

Starting as a thought experiment in the 1990s, cryptocurrency has slowly bled into everyday life, developing into a nearly-mainstream market. According to a recent survey by the Pew Research Center, from 2015 to 2021 the percentage of Americans who personally invested in cryptocurrency rose from 1% to 16%; in 2021, 86% of Americans knew something about cryptocurrencies. Official counts vary but the consensus is, more than 10,000 cryptocurrencies exist today, with the most popular being Bitcoin and Ethereum.

Congress is in the process of developing legislation to regulate cryptocurrency within U.S. borders, and has already passed a tax provision to simplify reporting requirements. These changes have implications for the philanthropic space and the willingness of donors and other stakeholders to engage with cryptocurrency.

Blockchains Enter the Philanthropy Space

Charitable giving via cryptocurrency gained steam in 2013 with the establishment of the BitGive Foundation, the self-described “first Bitcoin and Blockchain charity.”  It rose sharply in visibility in 2017 when an anonymous donor established the Pineapple Fund and donated Bitcoin worth over $55 million to 60 charities.  Since then options for donating cryptocurrency have expanded:

Funding Missions with Cryptocurrency

Once the gifts are held by a donation management platform or nonprofit, more possibilities emerge.  The decentralized characteristic of all cryptocurrencies allows them to bypass country borders and traditional currency exchange rates.  To use cryptocurrency, nonprofits can either spend the digital asset  or convert it into fiat (traditional) currency.

Many nonprofits will “cash out,” since volatility makes these currencies a risky choice for long-term investment. Most currency exchanges around the globe work with only fiat currencies.  Some organizations, however, are working to build the capability to lean into the properties of cryptocurrency.

We spoke with representatives from ImpactMarket, and Alight who are collaborating to expand the practice and impact of Universal Basic Income (UBI) using cryptocurrency.

ImpactMarket created and maintains a platform for donors to give cryptocurrency. That currency is funneled directly to recipients in participating communities across Brazil, Nigeria, Ukraine, and India, many assisted by Alight. In communities where Alight doesn’t work directly, ImpactMarket partners with other nonprofits. The recipients of UBI funds choose how to use the currency, based on what is available in their area (“cash out” or use as is).

Their efforts haven’t been without challenges, like technology  and Internet access, as well as building trust with recipient communities.  But initial results are encouraging. Both organizations expressed hope for the future of the program, which seems to be fostering greater financial stability and long-term financial planning.

Without the existence of cryptocurrency, this type of global effort would be next to impossible.  Through ImpactMarket’s platform, donors can see exactly where their currency is headed and which communities they are supporting, creating a strong sense of donor-connectedness (GiveTrack works in a similar manner).  The global transfer of traditional currency is costly and time-consuming, while cryptocurrency has none of those associated fees.

Other ways of utilizing cryptocurrency on the nonprofit end include:

  • Working in philanthropic incentive programs for cryptocurrency miners and donators like RootProject, PinkCoin, and Impact Market.
  • Advancing donor involvement through the use of a reporting and voting system networked directly with donors (GiftCoin in partnership with Network for Good).
  • Using a blockchain to track the source and movement of goods as they move through supply chains (IBMs Blockchain for Social Good).

The Future of Crypto for Charity

One significant drawback to cryptocurrency is its negative impact on the environment. Blockchains require large amounts of energy to store and verify transactions. Bitcoin mining, for example, consumes 22 to 22.9 million metric tons of CO2 in a year. That’s comparable to Kansas City’s annual emissions.

Only 39% of the energy used to mine Bitcoin comes from renewable sources (mostly hydropower), with the rest produced through traditional fossil fuels. While there are proposed solutions, they have not yet been widely implemented.

Art museums, battered by the impact of the pandemic on attendance and income, first turned toward, then away from, selling NFTs, for these environmental reasons.  ImpactMarket uses Celo, the first carbon-neutral blockchain, which offsets its energy use by investing in tree planting and other carbon reduction projects. Alight’s decision to scale up its work with ImpactMarket will take environmental impact into account.

The anonymity of crypto donors is also problematic. Although transactions are recorded and tracked via IP address, the identity of the individual is not recorded.  This creates an obstacle in creating and maintaining personal relationships with donors. It also turns away organizations that avoid opaque funding sources.  In an interview with The Chronicle of Philanthropy, Erich Mische, Executive Director of Minnesota nonprofit Spare Key, said “We don’t want to get caught up in a situation where you get a knock on the door and find out that someone who gave you a significant donation is on some list that makes things problematic.”

AP is keeping a close eye on further developments, as the adoption of cryptocurrency in the philanthropic sector shows no signs of slowing down.

For more information on Access Philanthropy or suggest new ideas for a Philanthropy Landscape report, contact Steve Paprocki at [email protected]. To connect with researcher/author Laura Wilson, contact [email protected].

40 Social Enterprise Grant Opportunities. MCN Deadline Calendar

by

40 Social Enterprise Grant Opportunities

Global Peace Careers magazine recently produced a list with descriptions of 40 social enterprise grants, investments, etc., such as Echoing Green, Draper Richards Kaplan, and SEED Replicator. Need a grant, or just need to know what social enterprise grants are? This is a good place to start.

THE GRANTS DEADLINE CALENDAR IS BACK

The Minnesota Council of Nonprofits is back to publishing its list of Minnesota funders’ grant deadlines, this time with links to most funders’ websites. An invaluable tool for planning the upcoming quarterly grant request calendar.

Evelyn and Walter Haas Fund. MPLS Foundation. State Farm. Northwest Area Foundation

by

“EVELYN AND WALTER HAAS FUND

One of the best LGBTQI funders in America ($105 million to LGBTQI groups in the last 20 years) has decided to wind down its LGBTQI program. There will be two years of transition funding, but the board believes the Fund has done its work and needs to move on. Hmmm… This is/was a leader in the LGBTQI funding community. It will be hard to find a replacement.

MINNEAPOLIS FOUNDATION

Besides its donor advised funds, The Phillips Family Fund, and other unrestricted funds, the Minneapolis Foundation has EIGHT program funds:

— Catalyst Initiative
— Climate Action Fund
— Fourth Generation
— Fund for Safe Communities
— ONEMPLS
— Restore/Rebuild/Reimagine
— Reimagine Education
— WCA Foundation

NORTHWEST AREA FOUNDATION

NWAF’s Karla Miller recently wrote a piece for their website saying the foundation is keeping equity as a goal but focusing on justice. “Supporting equity is an important goal, but it doesn’t reach far enough. We need to cultivate justice. Our new grantmaking approach centers justice and systems change to help our priority communities thrive on their own terms. It emerged from our continual effort to be a better grant-maker and partner. We aspire to:

— Honor grantees’ worldviews and values
— Share power with grantees
— Trust grantees to know their challenges and know what might work for them
— Recognize that we need to do things differently from a traditional philanthropic approach
— Listen to our grantees
— Support healing within grantees’ communities
— Hold ourselves accountable to learning.”

Read the article on the NWAF website. The Foundation has recently spent a big chunk of cash and resources on American Indian causes, and immigrant and refugee issues.

PROPEL NONPROFITS announced their 2021-2023 Nonprofit Infrastructure Grant Program grantees. A great program in a deeply needed area. Congrats to our friends at Brownbody, one of Propel’s grantees. We love Brownbody’s tagline: “Skate Truth to Power.”

STATE FARM IS 100 YEARS OLD THIS YEAR

Why is that important? Every year the company awards 40 Neighborhood Assist grants. BUT this year, they’re awarding 100 grants of $25,000 to help fund neighborhood improvement projects. The program is unusual in two ways:

— Submissions begin on February 16 and close when State Farm receives 4,000 of them

After State Farm choose 200 finalists, anyone can vote (up to 10x day!) to select the winners.

If you’re up for the competition, it’s a relatively simple application.

MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

$3 million was awarded to 26 organizations to provide business loans to disadvantaged entrepreneurs, women, and people of color. Our congratulations to friends at First Children’s Finance and African American Economic Development Solutions.”

Melinda French Gates

by

It’s not surprising that Melinda French Gates is not investing all of her billions into the Gates Foundation

Melinda French Gates recently talked about her new philanthropic commitments: “I commit to doing more than writing checks. I also commit my time, energy, and efforts to the work of fighting poverty and advancing equality – for women and girls and other marginalized groups – in the United States and around the world … I’ll continue to seek out new partners, ideas, and perspectives.”

In 2015, French Gates founded Pivotal Ventures, an investment and incubation company that seeks to advance social and professional progress for women and families across the US.

Bill And Melinda Gates Foundation

by

You’ve probably heard already that there are three new folks on the B&MG Foundation board. They will be replacing Bill Gates Senior, who died some time ago, and Warren Buffett who recently said he wanted to retire from the board. Speculation was there might be more new people, and maybe a splitting of the Foundation into two or more separate funds

Well, “might” has actually happened, with three new folks:

Strive Masiyiwa, is a telecom billionaire and philanthropist from Zimbabwe.
Baroness Minouche Shafik, director of the London School of Economics, and formerly worked at the World Bank, the International Monetary Fund, and the Bank of England.
Tom Tierney, co-chair of the Bridgespan Group, which has advised the Gates Foundation, Mackenzie Scott, and hundreds of other foundations, nations, and colleges.

The Baroness and I have a mutual acquaintance at the London School of Economics. Our friend says the Baroness is a great listener, very humble and open to new ideas. Our friend also says she will be the “World Bank’s liaison to the Gates family.” Also, while several London college presidents are coming down hard on striking employees, we’ve heard from two sources that the Baroness has been gracious and open to LSE’s “striking faculty”.

More Funding Notes

by

“SAINT PAUL & MINNESOTA COMMUNITY FOUNDATION

Pahoua Yang Hoffman is leaving her role as Senior Vice President of Community Impact at the Saint Paul & Minnesota Foundation to join HealthPartners. “In her new role at HealthPartners, Hoffman will address community health, equity, and access to culturally competent care.” Nice article in the Sahan Journal about Pahoua and her journey.

MCKNIGHT FOUNDATION NEW HIRES

Last month, we talked about the six new hires at the Bush Foundation. This month, we have a few new faces at McKnight Foundation, especially in Vibrant and Equitable Communities group:

— Chad Schwitters, Vibrant and Equitable Communities
— Marcq Sung, Vibrant and Equitable Communities
— Dominic McQuerry, Vibrant & Equitable Communities/Midwest Climate & Energy
— Ben Hecht, Visiting Senior Advisor, Urban Revitalization.
—

MORTENSON FAMILY FOUNDATION

The Mortenson Family Foundation revised their guidelines on their Sustaining Environmental Systems grantmaking program. They have opened the portal and are now ready to pilot the guidelines. The deadline for proposal submissions is 4:00 pm February 18, 2022. There are information sessions next week. Call or write Danyelle O’Hara at 612-260-2067 or [email protected].

GENERAL MILLS

Turns out that Yoplait isn’t the only good culture at General Mills. According to Business Wire, General Mills earned a perfect score for the 16th year on the Human Rights Campaign Foundation’s assessment of LGBTQ+ workplace equality.

HEADWATERS FOUNDATION FOR JUSTICE

New to the Foundation: the Black Seed Fund will award two-year gen op grants to Black-led groups that “move us towards liberation.” Funds will be awarded to nominated groups. You can’t nominate your own organization, but inpidual supporters or community partners can put your name forward.

Besides attending the very first Headwaters meetings, we have been privileged to attend the birth of several women’s funds and community-owned funds in Philadelphia, Los Angeles, Denver, New York City, D.C., and Chicago. Many of these funds were great ideas and had great supporters, but none of these funds have become the type of community leader that HFJ has. Good work, HFJ. Our congrats to you guys.”

ISO Director of Development for cancer research

by

Organization: Rein in Sarcoma

Position: Director of Development

Compensation: $70,000 – $80,000

https://www.reininsarcoma.org/

CONTACT

[email protected]

Access Philanthropy is pleased to conduct the search for a Director of Development for Rein in Sarcoma.

Organization Background

Rein In Sarcoma, (RIS) is a leading resource for patients and families touched by sarcoma cancers. Sarcomas are an uncommon and often lethal group of bone and soft tissue cancers that may strike both children and adults. While rare among adults (less than 2% of all cancers), sarcomas are one of the most common cancers among children and young adults (17%).  Sarcomas are often diagnosed late or misdiagnosed contributing to its high mortality rate. We work in collaboration the Children’s Hospitals and Clinics of Minnesota, Mayo Clinic and the University of Minnesota to carry our mission of sarcoma education, patient and family support.  Education relationships are beginning in Wisconsin at The Medical College of Wisconsin, Milwaukee and University of Wisconsin Madison College of Medicine. In addition, Rein in Sarcoma (RIS), works in partnership with the University of Minnesota Masonic Cancer Center, Mayo Clinic and Children’s Hospitals and Clinics of Minnesota to fund innovative, collaborative and high impact research.

RIS is the largest sarcoma foundation in the Midwest. It is a Minnesota Nonprofit tax exempt (501c3) organization and meets all of the Minnesota Charities Review Council’s standards.

Since its creation in 2001, the foundation has been led by a volunteer Board of Directors and supported by the efforts of hundreds of volunteers. Rein In Sarcoma has reached thousands of people and raised more than $2 million for sarcoma cancer research.  In July of 2017, an Executive Director with strong relationships in the RIS community was hired. Office space is located in Fridley, MN.

RIS has developed a fundraising plan in partnership with an external consultancy organization. The current objective is to hire a contract Director of Development to implement the development framework and expand relationships with community members, businesses and foundations.

Mission

Rein In Sarcoma Foundation is dedicated to:

  • Educating the public and medical community about sarcoma cancers
  • Supporting sarcoma patients and their loved ones
  • Funding research directed toward developing new treatments and finding a cure for sarcoma cancers

Key Responsibilities

As the sole development staff leader, the Development Director reports to the executive director and is staff member to the Development Committee comprised of motivated, dedicated volunteers.  In collaboration with the Development Committee Chair and members, the Development Director is responsible for implementing the comprehensive 2018 development plan and time line. Ensuring funds from individuals and corporations meet goals to support programming and operations in order to sustain and grow a dynamic, diversified organization. They are to empower and collaborate with a strong team of volunteer leaders and build relationships with existing donors to achieve the goals of the organization. Their work is guided by the mission (above), which articulates the strategic direction.

  • Strengthen overall fundraising capacity by building upon our previously approved fundraising plan.
  • Implement an integrated fundraising program including:
  • Institutional fund development: grant seeking, sponsorships, annual giving
  • Individual fund development: direct mailing, high net worth individuals (HNWI), named funds, monthly donations, long term estate planning, fundraising event management
  • Strengthen and sustain relationships with current donors and partners.
  • Recruit, orient, and train volunteers to support fundraising events and activities

Required Qualifications

    • Demonstrated results in nonprofit fundraising (corporate and foundation solicitation, grant writing, individual fundraising, event management)
    • Proven ability to develop strong relationships both internally and externally. Able to consistently build rapport with board volunteers, community donor base, as well as organizational leaders.
    • Proven ability to achieve results while managing a variety of projects and deadlines.
    • Excellent verbal/written communication and effective presentation skills.
    • Demonstrated ability to work independently and as a part of a team.
    • Experience with Salesforce, maintaining fundraising and constituent management database.
    • Discretion in handling and securing confidential information, as well as the ability to conduct oneself in a highly professional manner.
    • Oversees management of development expenses, budgets and goals.
    • Incorporates new technologies, research methods, and trends to ensure long term relationships

with existing and new donors.

  • Provides objective and insightful feedback to strengthen the work of staff and volunteers carrying

out the organization’s mission.

  • Promotes and supports a positive culture in the office and inspires sarcoma community in the field.
  • 5 years of development/fundraising experience
  • 4-year college degree
  • Ability to work occasional weekend and evening events as required
  • Successfully complete a background check
  • Licensed with the State of Minnesota

 

Preferred Experience

  • Fundraising with health-related nonprofits, sarcoma or underserved diseases
  •  Increasing donations in multi-approach strategy
  • Preparing and editing effective marketing materials

 

Compensation

The annual compensation range is $70,000 – $80,000.

Rein in Sarcoma affirms its social and legal commitment to promote an atmosphere and environment that recognizes the principle and practice of equal employment opportunity. As such, Rein in Sarcoma does not discriminate in employment opportunities or practices on the basis of race, color, religion, gender, national origin, age, disability, sexual orientation, status with regards to public assistance, membership or activity in a local commission or citizenship status, or any other characteristic protected by law.

How To Apply 

Submit cover letter and resume to Access Philanthropy, at [email protected].

The search committee will accept applications on a rolling basis with a final deadline to apply of March 25, 2022.

DOWNLOAD THE JOB DESCRIPTION