NFT and Crypto Donations: Increasing Number of Non-Profit Organizations Are Using Digital Assets for Fundraising

NFT and Crypto Donations: Increasing Number of Non-Profit Organizations Are Using Digital Assets for Fundraising

Blockchain offers a range of benefits to facilitate raising money for non-profit organizations and helping those in need. Thanks to the technology, NFTs and cryptocurrency are not only investments but also powerful tools that drive charitable donations. Crypto-assets can provide a safe, more transparent way of funding, along with several other benefits.

As the adoption of cryptocurrencies and NFTs grows exponentially year on year, charities and non-profit organizations have begun to incorporate them for fundraising. In 2021, the number of donations in digital assets made through ‘The Giving Block’ organization surpassed those made in 2020 by 1558% (amassing $69,644,535 in total), and 2022 looks even more promising. The director of Crypto Consultants UK commented that crypto donations offer multiple advantages, including the following:

• Charities have full control over fundraising with no third parties being involved.
• Transparency for donors.
• Blockchain has a growing user base, which could thereby increase the number of donations.
• Crypto-assets are borderless, which could increase donor size.
• Reduced fees for donors and charities alike.
• Ease of collaboration.
• NFTs embrace creativity.
• Popular ambassadors can raise funds by selling their own NFTs for the charity.

He explained that NFTs offer transparency as they live on the blockchain and can be checked by anyone. Anyone can see who created a digital asset, who owned it in the past, and its overall journey from wallet to wallet. This is appealing both for the charity and the donor as NFTs build trust, allow for permissionless access, and provide proof of ownership.