9-5 DonaBlock NFT Fundraising

What is an NFT?

In the most basic sense, a non-fungible token is a way to store data on a blockchain such as Ethereum. Unlike fungible assets such as the US dollar, one NFT cannot be swapped interchangeably for another NFT. That’s because each token functions as a way to validate unique ownership of something, such as a single work of digital art.

In the case of digital art, NFTs are often misunderstood to be the work of art itself, but that is not the case. Instead, the NFT is the underlying technology that has enabled digital artists to mint and sell uniquely verifiable works of art.

As a comparison, think of an NFT more like the deed to a house than the house itself. Just like the holder of a deed can prove that they are the owner of the house, an NFT holder can prove that they own the asset in question.

Why NFTs Matter to Nonprofit Organizations

As NFTs have caught the attention of mainstream culture, the market for NFTs has grown exponentially. NFT creators and collectors have seen a rise in profit margins from the sale of NFTs. In turn, this has empowered the NFT community to use its affluence to make a positive social impact, often in the form of charitable donations to nonprofit organizations.

Not only do NFTs represent a new revenue stream for nonprofits, but NFTs also enable organizations to expand their network and connect with many new supporters for their cause.

And charitable giving from the NFT community is by no means limited to the occasional major gift from the most profitable artists.

Just as there is a whole ecosystem that maintains and grows the NFT market—from artists and marketplaces to traders and collectors—there are a variety of people, projects, and companies that are essential to the growing philanthropic side of the NFT community. Many nonprofits establish long-term relationships within the NFT community and receive continual support for their cause.

Why NFTs Matter to Nonprofit Organizations

NFT fundraising strategies share many similarities with traditional nonprofit fundraising techniques, but the key difference is that NFT fundraising relies on blockchain technology.

To fundraise using NFTs, many nonprofits hold NFT charity auctions or partner with NFT creators to receive the proceeds from NFT sales.

Much like traditional fundraising strategies such as crowdfunding and art auctions, NFT fundraising requires planning ahead of time and knowledge of your audience. It also takes advance investment in specific technologies or services, since NFTs depend on a different system of transactions using blockchain technology.

DonaBlock Giving Fund helps nonprofit organizations of all sizes maximize their fundraising outcomes as they tap into the fundraising power of NFTs.