Use this button to switch between dark and light mode.

Cryptocurrency donation trend with Gen Z donors: Why due diligence is critical

September 15, 2025 (3 min read)
a light blue futuristic globe is shown against a dark blue background; icons showing different forms of currency are radiating out from the globe

Crypto is influencing how and who gives

The Giving Block, a crypto fundraising platform for nonprofits and donors, reported in its 2025 Annual Report on Crypto Philanthropy, that over $1 billion in cryptocurrency was donated to nonprofits in 2024 alone, marking the highest year on record for crypto philanthropy. With billions in digital assets flowing into the nonprofit space, crypto gifts have emerged as both an opportunity and a risk.

According to Gemini’s 2024 State of Crypto Report, 51% of Gen Z respondents globally say they have owned or currently own crypto, supporting the belief that they are most crypto-engaged generation to date. Gen Z donors are more likely to donate based on issues and causes they strongly believe in, rather than institutions, viewing themselves as active agents of social change.

Crypto enables fast, borderless giving from younger donors who may not appear in traditional wealth databases but hold significant digital assets. But their preferred currency comes with complex compliance, reputation, and transparency challenges. Crypto gifts can be difficult to trace, and if mishandled can expose nonprofit organizations to reputational or compliance risks. Given the surge in crypto donations, it is important for organizations to move forward with confidence. To do so, development professionals need clear, proactive due diligence processes tailored to digital giving.

Due diligence builds trust with Gen Z donors

Gen Z philanthropists are highly intentional. They want to support organizations that not only reflect their values but also demonstrate ethical and transparent gift handling. For this group, cryptocurrency isn’t just a financial asset, it is also a statement of identity and purpose. Giving in crypto reflects a desire for autonomy, innovation and mission alignment.


These donors are also reputation-aware and most likely expect the same diligence from nonprofits as they apply in their own decision-making. Therefore, accepting their donation without a visible due diligence process may reduce trust especially if the organization can’t explain how risks are managed.

Why crypto donations demand a different kind of vigilance

Unlike traditional donations, crypto contributions can obscure key information that’s essential to trust-based fundraising, raising obstacles like the ones below: 

  • Anonymity: Many crypto wallets mask donor identities, making it hard to verify alignment or legality.
  • Lack of audit trail: Some donations may originate from sources that conflict with your values.
  • No standard KYC protocols: Unlike regulated financial institutions, crypto platforms don’t always require robust identity verification.

These systemic risks show why extra vigilance is needed and why traditional vetting simply isn’t enough. Below are three core risks development teams should monitor when evaluating crypto gifts.

Three core risks to monitor with crypto contributions

1. Opaque Origins

Crypto wallets can receive funds from dozens of unknown sources like offshore accounts, shell companies, even dark web transactions. PwC’s article Redefining Charitable Giving in the Digital Age notes that without full visibility into where the money originated, nonprofits may unknowingly accept funds that conflict with missions or create legal exposure.


2. Volatility and Valuation

Gift size may change dramatically between donation and transfer. For example, a gift worth $6,000 when pledged, could be worth less or more, by the time its processed. If handled incorrectly, this volatility could affect revenue forecasting, create inconsistencies in financial reporting and financial disclosures (confuse donors when gift acknowledgement doesn’t match their expectations). Clear internal policies around valuation, conversion timing, and receipting are critical.


3. Public Scrutiny

If the donor’s wallet or associated entities are later flagged in a legal case or media scandal, your organization could be swept into the narrative. Even an indirect link to controversy can result in reputational damage to your nonprofit. Transparent vetting procedures and proactive monitoring help protect your nonprofit from being caught off-guard.

How Nexis® for Development Professionals can help you accept crypto donations

Crypto research can be time-consuming but platforms like Nexis for Development Professionals simplify the process.

  • Verify donors and their affiliations with US public records*, company databases, and donation histories
  • Scan for red flags like litigation, sanctions, or fraud allegations
  • Create audit-ready donor profiles with one-click reports
  • Set alerts for wallet-linked names, ensuring ongoing monitoring post-gift

Whether your donor pays in Bitcoin, Ethereum, or an emerging altcoin, you need the tools to answer:

  • Where did it come from?
  • What’s the risk?
  • Does this align with our mission?

Your reputation is non-negotiable

Nonprofits are built on trust. Accepting crypto without a plan for transparency and alignment invites scrutiny and risks undermining your credibility with stakeholders, the media, and even future donors. But refusing to accept cryptocurrency might hinder your fundraising goals. 

LexisNexis is here to help. Download A Guide to Smart, Scalable Due Diligence and learn how to build a tiered risk framework, evaluate digital gifts, and protect your mission.

 

Download the Guide