Cryptocurrencyis becoming amore familiar way to pay for things.
One option is as part of a crowd, through adecentralized autonomous organization.
DAOs are essentially clubs that harness both crowdfunding and cryptocurrency to operate in arenas fromart to sports.
They are also cropping up inphilanthropy.
One good example is theBig Green DAO.
Big Greens founder isKimbal Musk, who is Elon Musks brother and a member of Teslas board.
The DAO version of his nonprofit promises to disrupt philanthropic hierarchies by reducingoverhead spendingand shaving other expenses.
It’s free, every week, in your inbox.
First, DAOs have little if any formal infrastructure.
This means, typically, that cryptocurrency donations actually provide donors with alarger tax benefitversus cash donations.
However,its unclearwhether funds can legallyflow to, through and out of a charitable decentralized autonomous organization.
Nonprofits are subject to regulatory enforcement and need to be chartered in a particular state.
Its also unclear whether the very nature of DAOs is compatible with charitable donations.
The tokens essentially represent a fractional form of collective ownership.
This could be problematic.
When donors make charitable contributions, they relinquish the money or asset they just gave to the charity.
Wild rides
The clearest risk with those gifts is probably their volatility.
