Updated: Apr 9
3,200 MKR Tokens donated on the last day of the year to fund masters and PHD research
On the last day of 2019, around $1.3 million in cryptocurrency was donated by Carnegie Mellon Class of 2014 Alumni Nikolai Mushegian in the form of 3,200 MKR tokens (Valued at around $430 USD each). This is one of the largest known, and publicly acknowledged, donations of cryptocurrency to a higher educational institution for 2019.
What's more, Mushegian, the Carnegie Mellon alum, has informally committed to donate an additional 6,800 MKR tokens over the next 1-3 years (approximately $2.9 million USD at today's market value).
What is MKR?
MKR is a cryptocurrency governance token as part of the Maker DAO on the Ethereum Blockchain to minimise the price volatility of the stablecoin DAI (A fully collateral backed cryptocurrency token where it’s value is kept predictable compared the US Dollar).
Why donate cryptocurrency to Carnegie Mellon University?
According to a blog post written by Nikolai on January 1, 2020,:
“I have two motives for this donation. The first is simply that it’s good karma. The second is that I am very concerned about the increasing rent-seeking behavior from some of the big players in this space, and also from existing banks and tech giants.”
Not only is he donating to his alma mater, but also supporting a cause that he supports strongly. We think it is far more likely that cryptocurrency donors will donate to their alumni association as part of annual giving if their university teaches courses on blockchain, cryptocurrency or associated topics. Universities that teach these topics, have cryptocurrency clubs, or are located close to a hub of cryptocurrency or blockchain activity are those that are most likely to receive donations of cryptocurrency.
By making this donation on the last day of 2019, the donor will also be able to write off the donation as part of his 2019 tax return, something that anyone who has donated cryptocurrency this year is also able to do. Incidentally, 2019 is the first tax year to explicitly mention cryptocurrencies as part of the 1040 form.
What other colleges and universities have received cryptocurrency donations?
In this bold new age of bitcoin, droves of higher education institutions are benefitting donations from cryptocurrency industry players, including:
San Francisco State University: $25 Million USD worth of Ripple to San Francisco State University School of Business.
Princeton University (Center for Information Technology Policy): A sizable amount from ‘87 Alumni Mike Novogratz to the Bridge Year Program as well as a share of the $50 million USD donated by Ripple to 17 universities.
Holberton School New Haven: the institution received $10,000 USD worth of Bitcoin by the founder of Scroll Network
University of Puget Sound: $10,000 USD worth of Bitcoin from Alumni
Other higher education institutions enjoying Cryptocurrency endowment: University of Pennsylvania (Wharton School), Indian Institute of Technology Bombay, Australian National University College of the Law, Delft University of Technology (Netherlands), Fundação Getulio Vargas (Brazil), International Institute of Information Technology, Hyderabad (IIIT-H), Korea University, University of Texas at Austin (McCombs School of Business)University of North Carolina at Chapel Hill, University College London, University of Luxembourg, University of Nicosia (Cyprus), University of Oregon, University of Waterloo (Canada): 17-plus Universities who received a $50 million USD Donation from Ripple
How Can My Institution Receive Cryptocurrency Donations for Higher Education?
Donations of cryptocurrency by alumni to their Alma Mater are on the up, and while some donors may reach out ahead of time, for the vast majority of donors, without an accessible and tax-friendly way to deal in bitcoin donations for higher education, this approach is unlikely. But, there is a way forward.
The Giving Block works closely with higher education institutions to help them accept bitcoin donations efficiently and effectively. We achieve this with a swift and accessible cryptocurrency fundraising solution, while helping our institutions develop sustainable cryptocurrency fundraising strategies.
If you're a higher education institution and you'd like to benefit from cryptocurrency, find out how to accept cryptocurrency donations.
To see what we do in action and how our solution can help you, book a demo and we'll walk you through everything.