One major hotspot for entry into the Web3 sphere is non-fungible tokens which makes sense as NFTs are very versatile, fitting seamlessly into most industries. From gaming to fashion, real estate, and even beverage companies, we’ve seen NFTs become part of and totally overhaul these sectors.

Notably, one of the least discussed spaces where NFTs have settled is the charity sector. After non-fungible tokens blew up, a lot of people saw a chance to make some profit, or in the case of non-profit organizations - a chance not to. However you look at it, these digital moneymakers have proven themselves to be valuable tools if you’re looking to give back.

In this article, you’ll find out how NFTs fuse with charity platforms as well as a few examples to drive home the picture.

NFTs and Charity

Separate from NFTs, traditional charity models generally depend on cash donations or in-kind donations. Usually, if you wanted to donate you would make your donations directly to the non-profit. They would then take charge of getting the goods or cash to the people and places that need them.

While we cannot deny this has worked well enough in the past, that doesn’t mean it lacks limitations. Traditional non-profits usually are wanting in transparency and because of this donors often feel disconnected from the impact of their contributions.

Once you make a donation to an organization it’s not exactly easy to track how your funds are handled because you may not have direct access to that information. But, NFTs have changed that completely let’s explore how and what other changes they have brought to philanthropy.

1. Transparency and Accountability: By adopting non-fungible tokens, non-profit platforms give donors a chance to follow the journey of their donations in real time through a public ledger. As a donor, this gives you greater confidence that your contributions are making a difference.
2. Tangible Benefits: One obvious benefit of charity campaigns that utilize NFTs is that donors get something in return; an NFT. These NFTs could provide additional perks such as exclusive merchandise or access to unique experiences in exchange for contributions. This creates a more memorable experience and allows for a direct and personal connection to the cause donors are supporting. Charities can also use this to encourage more people to give thus generating additional funds for their mission.
3. Community: NFTs often serve as the foundation for communities because they give people a chance to gather around a common interest. This same phenomenon is possible with charity organizations as they can foster a sense of belonging and engagement among their supporters. Donors who hold these unique digital assets can feel like they are part of a special community that is making a positive impact in the world. In this way, NFTs can help charities build a stronger relationship with their donors and create a more dedicated and passionate base of supporters.
4. Innovation: The fusion of NFTs and charity organizations is still in its early stages, which means there’s lots of room for innovation and experimentation. Charities can explore new ways of using NFTs to incentivize donations. They can use decentralized autonomous organizations (DAOs), and develop other novel approaches to charitable giving. With DAOs, donors can pool their funds and be actively involved in making collective decisions about how the money should be allocated.

Here are some of the ways that charities can use NFTs;

1. NFT fundraising: Organizations can create NFT projects of any kind. They can then sell these tokens and put the proceeds from the sales towards the charity’s cause.
2. Donating a percentage of sales from existing NFTs: Artists or creators can donate a percentage of the sales from their existing NFTs to a non-profit.
3. Auction off donated NFTs: Charities can opt to auction off NFTs donated by artists, celebrities, or other donors to generate revenue.
4. Offering NFTs as rewards for donations: Charities can offer NFTs as a reward for donors who make a certain level of donation.

Cases of NFTs in Charity

• Binance Charity Foundation: In March 2021, the Binance Charity Foundation auctioned off a digital artwork NFT by Trevor Jones, raising over $200,000 for COVID-19 relief efforts.
• CryptoKitties for Charity: In 2018, CryptoKitties, partnered with the Ocean Elders charity to create a special edition CryptoKitty NFT. The proceeds from the sale of the NFTs went towards protecting the ocean and its wildlife.
• The World of Women (WOW) project is an NFT-based fundraising project that aims to support female artists and provide them with a platform to showcase their artwork. It involves the creation of a series of 10,000 unique digital portraits of women, which are sold as NFTs on the blockchain. A portion of the proceeds from the sale of each NFT is donated to the Breast Cancer Research Foundation.

So far we’ve seen non-fungible tokens gain traction in charity thanks to the increase in transparency and the emergence of creative ways to engage donors. As  NFT applications continue to advance, we can look forward to the many doors they will open in philanthropy.

‍