Crypto Giving: A Conversation with Ash Cooper Kerns

Over the past few years, the buzz around cryptocurrency has exploded. Pew Research reports that 16% of adults in the U.S. have invested in, traded, or used crypto. Rates are even higher among millennials. According to Fidelity, over 35% of young investors say they own cryptocurrency.

Despite the market’s recent downturn, which resulted in values of Bitcoin and thousands of other cryptocurrencies dropping drastically over the last several months, fervor and optimism about long-term prospects remain largely intact, at least among crypto’s biggest fans. In June, more than 15,000 developers, artists, influencers, and enthusiasts from the crypto community gathered for the Fourth Annual NFT.NYC conference, which featured panel discussions, networking opportunities, and events.

As more investors explore the sector, crypto is poised to impact the future of fundraising. According to a 2021 study conducted by independent research firm Artemis Strategy Group, crypto investors are more charitable than traditional investors: 45% of crypto investors donated $1,000 or more to philanthropic causes compared with 33% of traditional investors. As a result, many nonprofits have begun devoting staff and technology resources to manage the acceptance of crypto donations. 

We were recently introduced to California-based Notes for Notes, Inc. (N4N), a nonprofit organization at the forefront of crypto giving. Founded in Santa Barbara in 2006, N4N builds, equips and staffs (with Producers) in- and after-school recording studios for youth to explore, create and record music -- both in person and digitally -- free of charge. Today, N4N provides access to high quality recording studios in 11 states for over 8,500 youth annually. Located inside Boys & Girls Clubs, youth serving facilities, and public schools, N4N Studios are providing the means to explore music and learn about the industry, foster NFN’s core pillars of Confidence, Creativity, Compassion, and Community, and acquire 21st Century Skills which will support youth participants in any path they choose.

N4N has been accepting a variety of cryptocurrencies since April of 2021, when CEO/Co-Founder Phil Gilley and Ash Cooper Kerns, now Director of Crypto Giving and Web3 Partnerships, launched the organization’s crypto giving program. We were thrilled to speak with Ash about her efforts to support the organization’s move into the crypto space. What follows is a brief primer on crypto giving based on our conversation over Zoom.

Ash Cooper Kerns

At Aurora Grants, we’re NOT crypto experts, but we ARE crypto curious—and we’re happy to share what we’re learning!

What is cryptocurrency?

Ash: Cryptocurrency is a virtual or digital form of money. As of July 2022, there are over 10,000 different cryptocurrencies in existence, and all are secured by cryptography to prevent counterfeit. Widely known cryptocurrencies include Bitcoin, Ethereum, Tezos, and Litecoin. Consumers can invest in cryptocurrencies and/or use cryptocurrencies to buy goods and services. The values of cryptocurrencies are determined by supply and demand without any outside entity or governing body controls.

What is blockchain technology, and how does it relate to crypto?

Ash: Banks are not involved as middlemen in cryptocurrency transactions. Rather, cryptocurrencies rely on decentralized, peer-to-peer managed blockchains to record transactions. A blockchain is a growing digital ledger of timestamped blocks (or records) that reflect crypto transactions, including those related to nonfungible tokens, or NFTs. NFTs are crypto assets that, unlike cryptocurrency, are unique and represent a range of physical items and identities, from real estate to artwork to property rights.

What is crypto giving and how does it work?

Ash: Just as cryptocurrency can be traded for goods and services, it can also be donated to organizations. Investors look to donate crypto assets both to support causes and reap tax benefits. Because crypto donations are non-cash in nature, they are treated as in-kind donations. Nonprofits can either liquidate crypto donations immediately for government-issued currency or hold onto them as a non-cash asset for short- or long-term gains as determined by their Gifts Acceptance Policy.

Why did N4N start accepting crypto in 2021?

Ash: In March 2021, N4N encouraged me to devote a substantial amount of time to engaging the crypto community and researching the potential benefits of accepting crypto donations. As a result of conversations with CEO/Co-Founder Phil Gilley, the N4N Board and C-Suite ultimately agreed that entering the crypto ecosystem could further our mission. Beyond raising awareness for N4N programs to new donors, the crypto sector engages an important set of opportunities around NFT music and digital art that benefit of the young artists the organization serves. The crypto community is therefore a natural fit for innovative arts organizations like N4N.

 Like the punk rocker ethos at our core, we know that the pirate radio frequency we broadcast on will connect with those outsiders who enjoy taking the road less traveled, appreciating the journey to success. We believe the crypto community is filled with them and we aim to patiently and authentically find and be found by those who connect with our approach. 

—Notes for Notes x Cryptocurrency: A Path to Artistic Growth and Sustainability

How does N4N process crypto donations?

Ash: N4N uses crypto donation processor The Giving Block to administer our crypto giving program. The Giving Block offers a range of crypto donation solutions including the technical infrastructure required to accept crypto gifts, convert crypto to dollars (or hold as assets), and support active fundraising initiatives. I strongly recommend that organizations use a platform such as The Giving Block to ensure proper infrastructure for accepting and adhering to standards around crypto, and to efficiently leverage staff time in the process. Although The Giving Block and similar platforms charge annual fees, their organizational support is invaluable.

What does crypto donor stewardship look like?

Ash: Crypto donors require very different cultivation than traditional donors. I typically engage with crypto donors in real time on Twitter or through social, audio apps like Clubhouse. While fostering relationships with crypto donors may take longer, donations tend to be higher in value. For N4N, the crypto community has been welcoming, inclusive, and remarkably generous.

Ash can be found on Twitter @ashcooperkerns. For more information about N4N, visit notesfornotes.org.