Is cryptoaltruism transforming the nonprofit sector? Lessons from the Ukrainian nonprofits during the Russia-Ukraine War

Abstract

Cryptoaltruism refers to the ways in which distributed ledger technologies, especially blockchains, are changing the nature of the nonprofit sector. This study specifically investigates how the blockchain technology has been used by Ukrainian nonprofits during the current Russia-Ukraine War. To link this to the more general literature on blockchains, we consider whether blockchains are used primarily as a general-purpose technology or as an institutional technology which redefines how nonprofits coordinate activities. Our analysis of Ukrainian nonprofits provides evidence supporting both perspectives. Widespread acceptance of cryptocurrency suggests blockchains are an efficiency-enhancing new technology. We also show that novel applications on nonfungible tokens to preserve art and culture and to raise funds, as well as uses of blockchains to address challenges with trust, lend support to the idea of blockchains as an innovative institutional technology that is transforming the nature of the nonprofit sector. This study intends to motivate further development of the emergent agenda on cryptoaltruism and its role in the nonprofit sector.

Introduction to the special issue: Blockchains and public administration

“…One example is how peer-to-peer communities interested in improving management of commons-natural resources and the global environment-are able to use blockchains to bring people together for a common purpose . Chen and Murtazashvili's (2024) contribution to this special issue analyze blockchains and their impact on the nonprofit sector, with emphasis on their use by Ukrainian civil society organizations after Russia's unprovoked invasion in February 2022. One reason to accept crypto is that people may trust crypto networks more than conventional banks, or not have access to conventional banking.…”

“…Since post-conflict reconstruction is not limited to the Global South, there are also opportunities to explore how capacity influences blockchain use in such efforts. In Ukraine, crypto has been used by agencies and the government as a payment to support reconstruction (Chen & Murtazashvili, 2024). It is not a solution, but the extent to which it works is an area for research, in particular comparisons of the role of blockchains in reconstruction efforts in Afghanistan and Ukraine.…”