Alternative finance models will be massively adopted by charities in areas that were traditionally funded by the government, according to Dan Corry, Chief Executive of New Philanthropy Capital.

New Philanthropy Capital (NPC) is a charity consultancy that builds a network of funders and charities and helps to change the sector by developing new strategies and financing models, measuring impact and evaluating the progress.

P2P donations may increase efficiency with more money reaching people in need, Corry told City A.M. At the same time the charities landscape is not going to change dramatically with the adoption of virtual currencies.

“Bitcoin is interesting. But does it mean we’re going to see a cashless world in my lifetime? I don’t think so. Crowdfunding is important, and I’m not saying this is a good thing, but I’d be surprised if the charity sector will look massively different in 20 years’ time,” Corry said.

Direct cash P2P transfers allow for greater fundraising creativity. CoinFox wrote recently about ChangeTip and DirectRelief bitcoin donations campaign to buy vitamins for pregnant women in Africa. In January 2015, BitPay and Global Impact announced a partnership to help various international campaigns raise funds for the world’s poor. Earlier this year, a researcher working in the UK-based Charities Aid Foundation, published a report claiming that bitcoin digital currency has additional benefits for charity organisations and that digital currencies will sooner or later become mainstream in the sector.

The Mozilla Foundation added a bitcoin button to the donations form in response to user demand in November 2014. The non-profit corporation then partnered with Coinbase which offered donations processing free of charge both for charities and donors. After 17 days of accepting bitcoin donations Mozilla ran a statistical study that revealed negative impact on the fundraising campaign. At least these were the conclusions Mozilla made. However, the company did not remove the Bitcoin option from the donation form.


Aliona Chapel