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Australian Charities and Not-for-profits (ACNC) Commissioner Sue Woodward AM is urging charities to fully consider the risks and benefits before accepting donations of crypto-assets, or investing in crypto-assets.

The ACNC has released new guidance for the sector.

Crypto-assets are digital representation of value that can be transferred, stored, or traded electronically using blockchain technology. This includes cryptocurrency and non-fungible tokens (NFTs). They can be highly volatile and can experience significant value fluctuations.

“As charities look for new and innovative ways to raise funds, they may consider either accepting donations of crypto-assets or investing in crypto-assets,” Ms Woodward said.

“In general, the risks connected with a charity investing in crypto-assets are greater and harder to manage than the risks connected with accepting donations of this kind.

“It is critical that those who run charities develop their understanding or seek advice to ensure they are making the right decision for their charity. They need to understand the opportunities and risks. Managing a charity’s financial affairs responsibly is a key requirement under Governance Standard 5,” Ms Woodward said.

Read more in the new guidance: Charities and Crypto-assets.