Earlier this year, the price of bitcoin reached an all-time high. Given this scenario, cryptocurrency—or “crypto”— and the strategy of donating the asset to charity are steadily gaining in popularity.* With a global cryptocurrency market valued at more than $1 trillion, it’s understandable that philanthropic individuals are finding ways to convert the assets for charitable giving.

Bitcoin and other decentralized cryptocurrencies are still relatively new to the marketplace—and many nonprofit organizations are not yet equipped to accept this kind of contribution. In this case, a donor-advised fund (DAF) can serve as an important charitable tool for crypto holders and the financial advisors who support them. Glenmede’s DAF sponsor, National Philanthropic Trust (NPT), first started to accept gifts of cryptocurrency in 2017. NPT purchased two hardware wallets and established relationships with cryptocurrency exchange platforms equipping them to handle crypto contributions with ease.

As the use of cryptocurrency grows more widespread, philanthropic individuals will want to make use of these digital assets for real-world charitable impact. By using a charitable vehicle like a DAF or a designated fund, donors can ensure that they are able to continue supporting their favorite charitable causes. You can read the full blog article as well as the process of accepting crypto* to a DAF here.