Colleges in the US Baffled by Increasing Donations in Crypto
Esteemed universities all over the United States currently have a great number of graduates taking in cryptocurrency and in effect donating digital funds to the establishments. While their students and alumni are clearly embracing the technology head-on, a lot of universities simply don’t know what to do with these gifts.
A Cause for Concern?
Every year the number of organizations that receive such donations in the form of bitcoin and similar assets is growing. Despite this fact, many universities aren’t eager to accept these currencies as a form of payment because many investment managers responsible for these donations have no clue how to operate in cryptocurrencies.
First, they have to set up a kind of wallet in order to be able to trade in digital funds. The cryptocurrency market is such a volatile one which is a major issue for them because the funds have to be sold in a brief interval. Financial managers mostly choose to reject such donations than face these seemingly minor aspects of dealing with cryptocurrency. The United States tax collector the IRS does consider cryptocurrency a type of property, which makes it harder for nonprofits to receive these types of donations. A donation in cryptocurrency that is larger than $5000 makes the donor eligible for a tax write-off. Bryan Clontz, a consultant from Charitable Solutions, a company that provides assistance to charities when receiving assets that are not in cash, showed concern as to whether the amounts they receive a year would be worth the hassle.
Bloomberg has reported that various colleges in the US successfully received donations in digital currencies, but it was noted that bot the renowned Yale and Harvard universities are not catching up just yet. It was reported that at Yale the process has been under testing for some time, but is not currently of a high priority.
The policy at the university was indeed changed to accept these funds. Bitpay was used to generate the invoice with a QR code for the transaction and Cary received it directly to his personal computer. The next day, a donation was received at the school.
It seems to be quite odd that Yale turned down donations in cryptocurrency because David Swensen, Yale’s head of endowment, was linked to major investments in blockchain-based startups.
An Education in Finance
Information Wednesday revealed that on October 10 a multitude of prestigious universities had no less than one investment using cryptocurrency assets. Acceptance is growing among educational institutions according to the report. Major universities are also reported to have contributed to adding more skill to the crypto space by offering classes specialized in smart contracts and BC tech, as soon as it was announced that the world’s top educational institutes have taken on the cryptocurrency game.