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“As a rule, nonprofits are more money-conscious than business enterprises are,” wrote the great management author Peter Drucker[1]

Nonprofits could always use more money than they have available, and it is quite hard to raise money. While money is on everyone’s mind within nonprofits, the risks of holding larger amounts of money in cash or other “safe” assets like bonds are often not. If you are a board member, a CFO or a CEO of a nonprofit, you owe it to your mission to study Bitcoin. It is a promising technology that provides a hedge against the uncertain economic environment we find ourselves in these days. 

Let me share with you three reasons why your nonprofit should be seriously considering utilizing Bitcoin.

1. Larger Holes Are Appearing In Your Valuable Safety Net

Nonprofits are prudent to have savings. Most nonprofit have between three months and up to one year of savings set aside. Depending on your size, these savings are easily in the millions of dollars. 

Those savings move into bonds and other supposedly safe assets that can be changed into cash if need be. Undoubtedly, one needs to be prudent with donors’ money, but one also needs to understand that holding vast amounts of cash and bonds is a considerable risk in this day and age. It used to be a safe bet. But it has become the opposite, with around 27 percent of the world’s investment-grade debt yielding negative interest[2]

This is the result of the unprecedented monetary expansion in the United States and around the world. In response to COVID-19, the Federal Reserve has created an unprecedented 20 percent of all existing dollars in a single year[3].

Private and public debt is exploding and inflation is picking up,

Read more from our friends at Bitcoin Magazine