By: Ashley Byars
As we shared in Part I of our two-part non-fungible token (NFT) series, nonprofits and corporate partners are using NFTs to raise funds in exciting new ways, including auctioning one-of-a-kind digital art. Why the fascination?
According to a report by the World Bank, people are more likely to donate to a fundraiser if they feel they’ll receive something in return. With NFTs, people not only receive something valuable, but also the social status that comes with it.
Another study by Fidelity Charitable indicates that crypto owners tend to be more charitable than the typical investor, but 46% of these potential donors say it’s difficult to find nonprofits that accept cryptocurrency donations. Could this be your opportunity to stand out?
Know your audience: characteristics of crypto owners
Crypto was once a niche for the tech-savviest few, but it’s been gaining ground toward going mainstream at an exponential pace.
- Gemini’s 2021 State of Crypto report estimates that 21 million U.S. adults hold crypto (14%). Over 70% of crypto holders are 25‒44 years old.
- According to Pew Research Center, about three in 10 Americans aged 18‒29 (31%) say they have ever invested in, traded or used a cryptocurrency such as Bitcoin or Ether.
NFTs offer irrefutable proof of donations, which makes it easier for nonprofits to show accountability and earn trust. NFTs as a PR hook doesn’t hurt, either.
The first step for many nonprofts is to open a crypto exchange account. You can set up a crypto wallet with a company that will accept crypto and perform the conversion from crypto to currency. These companies include:
You may also consider using a crypto donation platform that provides more robust services. These include:
- The Giving Block: specializes in cryptocurrency fundraising solutions for nonprofits, including automatic conversion to U.S. dollars (if desired) and marketing support
- Every.org: handles the entire legal, accounting and technology process of accepting donations in Bitcoin, Ethereum and other top cryptos, sending a receipt to the donor, and converting it to cash without charging nonprofits a fee
- Engiven: provides a safe and easy path for a nonprofit to quickly set up, receive and exchange crypto donations for U.S. dollars via bank ACH at the enterprise level
Depending on the platform, you have flexibility in how to realize the gift value:
- Convert to a currency-based asset type immediately to avoid potential volatility
- Hold the funds as an investment in the form of an endowment in hopes of realizing more value over time
Interested in learning more about how you can leverage cryptocurrency and NFT trends for fundraising? Let’s connect.