Bitcoin could give NZ charities global reach
New Zealand charity Heart Kids has tapped into potentially deep global pockets by accepting donations from cryptocurrency owners.
It has received three cryptocurrency donations totalling more than $2000 in two months, said chief executive Mark Longbottom. That was a long way short of the $2 million a year the charity had to fundraise to operate but he said it was a potentially lucrative source of revenue not affected by the global pandemic.
Bitcoin has surged 400 per cent over the past year.
Covid-19 made last year extremely difficult for charities, with the alert level changes disrupting fundraising across the board, from sausage sizzles to large-scale street collections like the Cancer Society’s Daffodil Day.
Without wage subsidies and a bequest from a generous donor, Heart Kids would have struggled to get through the year, said Longbottom. The squeeze on traditional forms of fundraising, and a desire to attract younger donors, prompted it to investigate cryptocurrency.
It was the first local charity to sign up with The Giving Block, a United States-based company, to receive donations in Bitcoin and
other cryptocurrencies. Heart Kids was approached by The Giving Block head of research Michael Earley, originally from New Zealand.
‘‘Had we not had that anchor with Michael, maybe if you got a cold call you would start worrying about the negative side of a potentially unregulated market – how do you know who your donors are?’’ Longbottom said.
Donors engage with The Giving Block and US cryptocurrency exchange Gemini changes their Bitcoin or other cryptocurrency into cash, which is then deposited into the charity’s account within 24 hours. ‘‘We don’t hold Bitcoins, that is the crucial element,’’ he said. With Bitcoin currently worth about NZ$66,000 each, donations tend to be a fraction of the cryptocurrency. There was an annual subscription fee of between $2000 and $3000, which Heart Kids had nearly recouped without doing any promotion on the platform.