The global charity sector is facing a hugely challenging financial environment. Donations are falling, with research from the Charities Aid Foundation showing that charities are now relying on donations from only half of the people who said they donated money in the previous 12 months. When we look at the charity definition in practice — an organisation built to turn public generosity into real impact — the current environment makes that mission increasingly difficult.
The problems don’t end there, with the existing financial system dictating that inflation erodes the real value of donations. Donors have their money quietly inflated away, leaving them with less to give in real terms. And even when a charity finally receives the donation, the value continues to erode under the same inflationary pressures. The value decays at both ends of the journey.
What this means is that charities have to focus the little resources they have on relentless fundraising. Trustee research has shown that 1 in 4 charities were forced to draw on cash reserves during the pandemic to maintain operations. When you examine non-profit organization examples across the world — from humanitarian aid to community health — many follow the same unsustainable financial cycle.
How Traditional Financial Models Hold Charities Back
The traditional model treats donations as a transactional flow: give, convert to local currency, spend. That model assumes money maintains its purchasing power. It does not. Inflation is a steady compounding tax on giving — long before a donation is ever put to work.
This is before considering additional costs like foreign exchange fees. These realities force charities to ration impact, chase unrestricted funding and divert scarce staff time into fundraising instead of delivery. It is not sustainable.
The scale of this problem cannot be underestimated. Every year, charities pick up the delivery of vital public services as government budgets tighten. According to the NCVO, in the UK alone, charities now deliver over £14 billion of public services on behalf of central and local government. Solving this financial crisis is not just about doing good; it’s about protecting vital public infrastructure and preserving the very charity meaning people rely on.
Rethinking Donations: Why We Need a New Asset-Based Model
I have founded platforms MyTenNights and GiveMatch, which have raised over £100 million for charities in the UK and millions globally. This may seem like a significant achievement, but it resulted in a hollow feeling as we failed to see the real long-term impact. That outcome led us to search for a different approach — one that treats donations as a central asset, not something that must be immediately spent.
This reserve-based model requires an asset that protects charities from inflation. And today, there is only one asset that reliably fits this profile.
Why Bitcoin Can Protect the Future of Charitable Giving
For a reserve approach to work, charities need a central asset that inherently protects purchasing power. Bitcoin is currently the only asset with the characteristics to provide perpetual value and hedge against fiat currency depreciation. Large corporations already recognise this, integrating Bitcoin into their treasury strategies. If the private sector sees long-term value in Bitcoin, it is time for the charity sector to rethink its assumptions.
So, why Bitcoin?
- The best-performing store of value over the last decade — outperforming real estate, equities and cash.
- A new generation of philanthropists — crypto-native donors not served by traditional philanthropic structures.
- Early movers are proving the model works — Save the Children’s Bitcoin fund is just one early example of innovation in the sector.
The time has come to channel the growth and innovation of the Bitcoin ecosystem into lasting social impact.
Addressing Volatility and Governance Concerns
Sceptics often point to volatility and governance. Their concerns are valid. No responsible charity should embrace unhedged exposure without policy and guardrails.
A proper reserve policy defines:
- Risk tolerances
- Allocation bands
- Triggers for liquidating into operational currency
- Transparent reporting for donors
With these protections, Bitcoin shifts from a speculative asset to a treasury instrument that supports a charity’s mission instead of undermining it.
A Mindset Shift: Modernising Charity Treasury Management
This shift in financing social good requires forward-thinking charities and Bitcoin innovators to collaborate and steward a new model for 21st-century philanthropy. Importantly, this does not need to change the donor experience at all.
Some practical models accept donations in fiat, route them into a pooled Bitcoin reserve and manage them with a clear spending rule. When Bitcoin appreciates, part of the gains fund operations and part is reinvested. When markets fall, spending rules protect operational budgets for a defined period. The effect is smoothing — not speculation.
This is not about replacing traditional fundraising. It is about modernising stewardship. Charities already hold reserves in cash or investments; the question is which assets protect value over decades. For organisations operating across borders, foreign exchange losses are a constant drain. A Bitcoin reserve can meaningfully reduce that burden.
A Bitcoin-Powered Future for the Charity Sector
Building a Bitcoin reserve with clear oversight accelerates donor impact, reduces long-term fundraising expenses and protects the real value of donated capital. If implemented with discipline, it will lower the effective cost of giving and increase the share of funds that produce real-world outcomes.
Bitcoin alone is not the entire answer. Strong governance, community engagement and programme evaluation remain essential. What Bitcoin offers is protection — from inflation, from volatility in revenue, and from the systemic pressures that erode impact.
If charities are serious about maximising outcomes per donation, they must stop treating donations as expendable cash and start treating them as capital to be stewarded. That shift requires new treasury literacy and partnerships with trusted infrastructure providers.
We stand at a fork in the road. One path doubles down on short-term fundraising and quietly accepts that inflation is shrinking the public good. The other path modernises how charitable capital is held so that every donation lives up to its promise — to relieve suffering, build resilience and strengthen global development.
If lasting impact is the goal, the choice is clear.
