3.1 Purpose
This policy establishes guidelines for managing cryptocurrency price volatility and converting crypto assets to fiat currency, balancing organizational risk tolerance with operational needs.
3.2 Conversion Strategy
Select the approach that best fits your organization (check one and customize):
- ☐ Option A: Immediate Conversion - All crypto donations are converted to fiat currency within [24-48 hours/X business days] of receipt.
- ☐ Option B: Scheduled Conversion - Crypto donations are converted on a [weekly/bi-weekly/monthly] schedule.
- ☐ Option C: Hybrid Approach - Convert [X%] immediately; hold [Y%] for [time period].
- ☐ Option D: Strategic Holding - Hold crypto assets according to investment policy guidelines.
3.3 Stablecoin Policy
Stablecoins (e.g., USDC, USDT, DAI) may be treated differently due to reduced volatility:
- Approved Stablecoins: [List approved stablecoins, e.g., USDC, DAI]
- Holding Period: Stablecoins may be held for up to [X days/months] without conversion
- Maximum Holding: No more than [$X or X%] of organizational assets held in stablecoins
3.4 Holding Limits (If Applicable)
If the organization elects to hold cryptocurrency:
- Maximum Total Holdings: [X% of total organizational assets or $X maximum]
- Per-Asset Limits: No single cryptocurrency may exceed [X%] of crypto holdings
- Rebalancing Trigger: If any holding exceeds limits, rebalance within [X business days]
3.5 Conversion Execution
- Authorized Exchanges/Platforms: [List approved platforms, e.g., Coinbase, Kraken, or third-party service]