Categories: Bitcoin Entertainment

Sean’s Outpost Charity Finances Hit By Drop in Bitcoin Price

Click here to view original web page at www.coindesk.com

Bitcoin charity Sean’s Outpost is appealing for funds after running into financial problems as a result of the recent decrease in the price of bitcoin.

In a Facebook post, the Florida-based charity, which relies on bitcoin donations to provide meals and shelter to the homeless, said: “The recent price drop in BTC has played havoc with our finances and we are down to the bone right now.”

The charity reached out to the community on Thursday, following several weeks of weak bitcoin prices.

Over the past month, the price of bitcoin has gone down from $485 to $362 at press time. Last week, the CoinDesk Bitcoin Price Index briefly dipped to $295, the lowest point since early November 2013.

Restricted budget

In its Facebook announcement, Sean’s Outpost said it has used its funding to distribute over 120,000 meals to the needy so far. The organisation currently provides 2,000 meals per week and caters to more than 400 homeless in the city of Pensacola.

“We are the largest provider of meals to the homeless in Escambia County, Florida, by a wide margin. And we feed rain or shine,” the charity said.

Jason King, founder of Sean’s Outpost, told CoinDesk that the bulk of the money is spent on food and running its Satoshi Forest facility:

“It costs around $11,000 a month to run Sean’s Outpost. That’s the cost of 8,000+ meals a month plus mortgage and utilities on Satoshi Forest.”

King added that the non-profit operates on a very tight budget, substantially smaller than similar charities operating in the area.

Victim to volatility

According to King, Sean’s Outpost was never able to meet its expenses purely through donations, meaning the founders often had to pitch in to make ends meet. With the bitcoin price so low, this gap has widened.

Operating under such a tight budget leaves the charity at the mercy of the rises and falls of the bitcoin price, leaving it unable to hold bitcoin until a better return can be achieved.

King said:

“Price effects us because we have to sell no matter what. We have an obligation to feed all the people we feed every day, regardless of the price. So when the price of bitcoin falls sharply, in the short term, it effects our runway in terms of ‘weeks-worth of meals’ we have liquidity to provide.”

Furthermore, the charity had hoped to establish an endowment this year in an effort to minimize cash flow issues. However, recent downward price pressure has derailed those plans, forcing the organisation take a “hand to mouth” approach for the time being.

Relying on bitcoin

Since its inception, Sean’s Outpost has raised over 470 BTC from 1,925 donations, which equates to more than $171,000 at current bitcoin prices.

However, the actual dollar value of bitcoin donations made to the charity would be somewhat higher, as a majority were made when the price was significantly above today’s (with a historical peak at around $1,100 per coin in December 2013). The charity’s current bitcoin balance is 1.56 BTC.

Last May, Sean’s Outpost’s nine-acre Satoshi Forest facility was severely flooded and the bitcoin community quickly rallied to help repair the damage.

Despite the current appeal for additional funding, King said Sean’s Outpost is committed to feeding the homeless no matter what happens to the bitcoin price.

Charity image via Shutterstock

CharityFloridaSean's Outpost

In a Facebook post , the Florida-based charity, which relies on bitcoin donations to provide meals and shelter to the homeless, said: “The recent price drop in BTC has played havoc with our finances and we are down to the bone right now.”

The charity reached out to the community on Thursday, following […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin Price Fumbles Under $10,000 as Traders Fear $8K Target

Bitcoin price is trading below $10,000 and a further pullback could drive price even lower. | Source: Shutterstock By CCN… Read More

3 hours ago

Mark Carney’s Dollar-Killer Digital Currency Threatens Bitcoin

Mark Carney, governor of the Bank of England (BOE), has a plan to challenge the dollar's dominance. | Source: Photo… Read More

3 hours ago

Crypto Funds Are Outperforming – You Shouldn’t Be Surprised

Josh Gnaizda is the founder of Crypto Fund Research . It’s one of the worst-kept secrets in the alternative investment… Read More

3 hours ago

FTC Settles With Promoters of Multi-Level Marketing Crypto Scheme

The U.S. Federal Trade Commission (FTC), has settled charges it filed last year against four promoters of crypto-denominated multi-level marketing… Read More

3 hours ago

Ethereum moves closer to Istanbul hard fork as Geth and Pantheon merge all improvement protocols

While Ethereum is on its way to shifting from Proof-of-Work to Proof-of-Stake, the developer community is currently engaged with the… Read More

4 hours ago

Binance Research: Too early to rule out Ethereum blockchain competitors

Binance Research, the market research and analysis arm of Binance, has published a report on tokenization and the key factors… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More