Modernize Alumni Fundraising with Crypto Donations - The Giving Block

Why Educational Institutions Should Embrace Crypto Donations to Modernize Alumni Fundraising

by | Jan 29, 2025

As the financial landscape evolves, so too must the strategies educational institutions use to fundraise. One area that’s quickly gaining traction is cryptocurrency donations. While some universities have already embraced this growing trend, others remain hesitant due to concerns about volatility, regulations, and ethical considerations. However, the potential benefits of crypto donations—such as unlocking new donor pools, catering to tech-savvy alumni, and providing tax incentives for donors—are hard to ignore. Here’s why now is the time for universities to update their alumni fundraising strategies to include cryptocurrency.

A Growing Donor Pool with Untapped Potential

Cryptocurrency adoption continues to rise, with millions of people worldwide investing in digital assets like Bitcoin, Ethereum, and USDC. By accepting crypto donations, universities can tap into a new, younger, and tech-forward demographic of donors.

Pat Duffy, co-founder of The Giving Block, explains that the higher education sector has been one of the platform’s fastest-growing areas. Schools like Washington State University and Northeastern University are already benefiting from crypto philanthropy. Notably, prominent gifts like the $9.4 million USDC donation from Ethereum co-founder Vitalik Buterin to the University of Maryland showcase how universities can leverage crypto to fund transformative initiatives.

Additionally, crypto is particularly appealing to donors seeking tax-efficient giving. In the U.S., crypto donors can avoid capital gains taxes on appreciated assets and still claim a deduction for the full market value of their donation. This incentivizes larger gifts while allowing donors to make an impact with their digital wealth.

Meeting the Needs of Tech-Savvy Alumni

For younger alumni who are digital natives, cryptocurrencies represent a familiar and convenient giving option. As these individuals move into higher earning brackets, universities that embrace crypto donations stand to strengthen their relationships with this cohort.

25-35% of alumni own digital assets.

Your 2025 Alumni Fundraising Strategy is missing the highest-performing giving method of the last decade: Cryptocurrency.

If your Institution is not offering crypto as a donation method to your alumni, your development team is missing out on a $2 billion opportunity.

Learn More

Accepting crypto isn’t just about donations, either. Some universities, like Bentley University, have even begun accepting tuition payments in cryptocurrency, a move that resonates with international students who may find it easier to pay with decentralized assets than to navigate complex currency conversions.

Mitigating Risk with Best Practices

A major concern for universities hesitant to accept cryptocurrency is its volatility. However, industry experts recommend mitigating this risk by immediately converting crypto donations into fiat currency, a process made seamless by our platform.

Additionally, regulatory uncertainty—historically a barrier to adoption—is becoming less of an issue. In the U.S., growing bipartisan support for crypto and clearer regulatory frameworks have made it easier for universities to confidently accept digital assets.

The Time to Act is Now

Cryptocurrency isn’t a passing trend—it’s here to stay. As adoption grows, universities that embrace crypto donations position themselves as forward-thinking institutions ready to engage the next generation of philanthropists. The potential to unlock new donor pools, offer tax advantages, and modernize payment options makes cryptocurrency an essential part of any institution’s fundraising strategy.

By implementing best practices—such as using platforms to convert donations immediately, staying informed on regulatory developments, and communicating clearly with stakeholders—universities can mitigate risks and take full advantage of the opportunities crypto presents.

Ready to explore implementing cryptocurrency into your alumni fundraising strategy?

Reach out to our team today. Book a Meeting

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