On Wednesday, the Wikimedia Foundation, the not-for-profit organization responsible for Wikipedia, announced that it will accept donations in the form of Bitcoin.
Lisa Seitz Gruwell, the foundation’s chief revenue officer, stated in a Wikimedia blog post that members of its community have asked the foundation to start accepting Bitcoin. These requests, along with recent guidance from the IRS, encouraged the organization to once again review its capacity to accept the virtual currency.
Seitz Gruwell added:
“During this review, we identified a new way to work around past technical challenges, as well as to minimize the legal risks of accepting bitcoin. Through our work with Coinbase, a bitcoin wallet and payment processor, we’re able to immediately convert bitcoin to U.S. dollars, requiring minimal technical implementation on our end. Since we now also have guidance on how to account for bitcoin, there is a clear understanding of how to legally manage it.”
On its “Ways to Give” Web page, the Wikimedia Foundation notes it can only refund Bitcoin donations in Bitcoin. Since it does not store the cryptocurrency, refunds will be calculated on the US dollar amount the foundation receives via instant exchange at the time of the donation, using Coinbase’s Bitcoin sell rate when the refund is granted.
Photo Credit: Public Domain Image by Alan McConchie