Why nonprofits should care about NFTs – Part I

By: Mollye Rhea

First of all, what is an NFT? An NFT, or nonfungible token, is a unique digital representation of a tangible asset like an artwork, that can’t be duplicated. Owning an NFT means owning a digital asset, much like owning a patent means owning an invention, owning a copyright means owning a photograph, or owning a trademark means owning a company name or logo.

Think about it this way…what if you owned the only digital representation of the Mona Lisa? Or the most popular Pokémon card? Or an out-take of Baby Yoda?

Some recent examples that have caught the popular imagination include:

• EVERYDAYS: The First 5000 Days, a digital artwork by Mike Winkelman (“Beeple”)
• Twitter co-founder Jack Dorsey’s first Tweet
• Exclusive LeBron James sports highlights

NFTs have created a wealth of opportunities for cause marketing over the last year and continue to gain ground. For many mission-driven organizations, a single gift of an NFT from a major brand to re-sell as a fundraiser can be a game-changer. We’re seeing innovative social impact partnerships capitalize on the NFT trend in three main ways: auctions, charitable investments and direct donations. Take a look at these stand-outs.

1. The Coca-Cola Company & Special Olympics

The Coca-Cola Company partnered with 3D artists at Tafi to auction off special-edition NFT “loot boxes,” raising  $575,883.61 in donations to the Special Olympics.

2. Proctor & Gamble & Direct Relief

Proctor & Gamble, which manufactures Charmin, is selling NFTs of toilet paper-inspired art nicknamed NFTPs (the world’s first nonfungible toilet paper) to raise money for the charity Direct Relief to improve the lives of people impacted by poverty or emergency situations around the world. Each NFT comes with a physical display, a popular NFT trend…

3. Sotheby’s & Sostento

Sotheby’s announced its collaboration with Sostento, a nonprofit that supports frontline health workers, to auction off its latest nonfungible token collection via Sotheby’s Metaverse. The auction, Gifted: The 140 Collection, is considered to be Sotheby’s biggest NFT charity auction ever, with all proceeds going to Sostento.

 

At this point, you may be asking yourself, what in the world – or metaverse – is next? Stay tuned for parts two and three of our NFT blog series. If you have questions in the meantime, feel free to contact us.