A growing number of non-profit organizations are using digital assets for fundraising by DailyCoin
NFT and Crypto Donations: A Growing Number of Nonprofits Are Using Digital Assets for Fundraising
Blockchain offers a range of benefits to facilitate fundraising for nonprofits and help those in need. Thanks to technology, NFTs and cryptocurrency are not only investments, but also powerful tools that generate charitable donations. Crypto-assets can provide a secure and more transparent means of funding, as well as several other benefits.
As the adoption of cryptocurrencies and NFTs grows exponentially year on year, charities and nonprofits have started to incorporate them for fundraising. In 2021, the number of digital asset donations made through “The Giving Block” organization exceeded those made in 2020 by 1,558% (raising $69,644,535 in total), and 2022 is shaping up even more promising. The director of Crypto Consultants UK said that crypto donations offer multiple benefits, including the following:
- Charities have full control over fundraising with no third parties involved.
- Transparency for donors.
- The blockchain has a growing user base, which could increase the number of donations as well.
- Crypto-assets are borderless, which could increase the size of donors.
- Reduced fees for donors and charities.
- Ease of collaboration.
- NFTs embrace creativity.
- Popular Ambassadors can raise funds by selling their own NFTs for the charity.
He explained that NFTs provide transparency because they live on the blockchain and can be verified by anyone. Anyone can see who created a digital asset, who owned it in the past, and their overall journey from portfolio to portfolio. This is attractive to both the charity and the donor, as NFTs build trust, allow unauthorized access and provide proof of ownership.
Decentralization and fast money transfers make crypto and NFT donations efficient and unrestricted. The crypto expert shared some examples:
“Many have also learned from the situation in Canada where donations have been frozen. This has pushed charities towards NFTs and crypto. In addition to some recent examples of NFTs being used by charities for Covid-19: Aid, a UK-based charity, auctioned off its logo as an NFT to raise funds. In Canada, the government has frozen funds raised to support the Freedom Convoy – a protest against restrictions caused by the pandemic. Nearly $10 million that had been raised on the GoFundMe platform was made unavailable for withdrawal. Protesters then turned to due to its untrackable structure and resistance to censorship, raising $1 million.
Along the same lines, Ukraine has received millions in cryptocurrency and NFT donations. The beleaguered nation has suffered from a bloody war and needs large-scale financial support. Government officials have seen many benefits of receiving funds in crypto-assets.
To better facilitate digital asset payments, Ukraine’s Ministry of Digital Transformation has launched its own crypto fundraising site support site, while the National Bank of Ukraine has received $1 million from the community. by Solana. DAOs, individual artists, and art projects have also expressed their support for the country through crypto philanthropy.
To attract investors and supporters, some NFT projects pledge to donate a portion of their profits to nonprofit environmental, medical, and humanitarian organizations. Fortunately, blockchain technology allows users to ensure that funds are actually traveling to these destinations, and these Web 3.0 initiatives are helping to make the world a better place overall. Unfortunately, NFT projects use the “charity function” as a marketing strategy and do not always deliver on their promises.
on the reverse
- There have been many fake crypto/NFT charity projects, so it is important to make sure the charity raising the funds is reputable.
- According to The donation blockCharitable donations exceeded Bitcoin donations in 2021.
Why You Should Care
In many cases, donations in digital assets can be more reliable than those made in fiat currencies.