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NONPROFITS & NFTS EXPLAINED: A NEW VISION FOR CHARITABLE FUNDRAISING
by The Giving Block | Oct 12, 2021 | Reading Time: 8 min
There’s a fast-emerging fundraising source that contributed over $12 Million to
charities in 2021—if you haven’t guessed from this article’s title, we’re
talking about the creative, forward-thinking NFT community.
As non-fungible tokens (NFTs) have become a cultural force, they have also
become a powerful fundraising vehicle for nonprofits and other charitable
organizations.
The trend of nonprofit organizations receiving proceeds from NFTs explained some
of the growth in crypto donations seen over the past few years.
Wondering what NFTs are, and how are they can be used for social impact? Learn
why some NFT-related charitable donations have been as large as $3.5 Million.
FREE DOWNLOAD: THE RISE OF NFT FUNDRAISING REPORT
WHAT’S INSIDE
>What Are NFTs?
>The Massive Growth of NFTs, Explained
>NFTS: Art With a Social Impact
>How NFTs Can Support Charities
>Examples of NFT Projects Donating to Nonprofits
>Ready to Embrace NFTs and Crypto Donations?
WHAT ARE NFTS?
Non-fungible tokens (NFTs) are a part of the crypto and blockchain landscape. In
layman’s terms, you can think of NFTs as a kind of data file that can be
transferred between owners through digital transactions on a blockchain.
Are all NFTs related to art? Not necessarily. Using NFTs to represent the
ownership of creative artwork is the most popular use case today, but
technically an NFT could designate ownership of anything you can think of, such
as a certificate of education or even a real estate deed.
THE MASSIVE GROWTH OF NFTS, EXPLAINED
Gradually and then quite suddenly, NFTs have ballooned in popularity. They went
from being cult collector items for crypto OGs to being auctioned at Christie’s
and being used to support nonprofits that share the United Nations’ Sustainable
Development Goals. So how did we get here? Let’s rewind.
Before the existence of NFTs (as we know and love them today) several
crypto-based digital collectibles paved the way for the creation and interest in
unique, blockchain-based digital assets.
One example was “colored coins,” a popular early collection. In 2014, the
first-ever NFT minted was a work called “Quantum,” by artist Kevin McCoy, which
sold for $1.4M a few years later:
Soon after, another early wave of NFT projects like CryptoPunks and
CryptoKitties broke through into mainstream media, while the specific NFT
marketplaces like OpenSea were created to support the emerging industry.
Fast forward to today: the non-fungible token has taken the art world, and the
rest of the world, by storm. (Pause here if you want to go in-depth on NFT
history.)
Millennials and Gen Xers were the first to create a buzz around NFTs, attracted
in part by the novelty of owning and displaying these unique digital artworks.
Institutional investors quickly followed, spending millions in digital auctions,
along with a wave of celebrities, athletes, brands, and influencers eager to
capitalize on the hype.
In a short amount of time, NFT projects like Bored Apes witnessed an explosion
in market demand and global intrigue for their art.
“Some NFT enthusiasts see them as collectibles with intrinsic value because of
their cultural significance, while others treat them as an investment,
speculating on rising prices,” a reporter for Reuters observed. The same article
noted that the market surged to $2.5B in sales through Q2 of 2021.
According to Google search data, interest in NFTs began to blast off in February
2021.
While some of 2021’s NFT mania has cooled off a bit during 2022’s crypto bear
market, numerous major brands are working with NFT projects such as Nouns and
Doodles.
NFTS: ART WITH A SOCIAL IMPACT
NFT artists and creators haven’t been shy about their passion for charitable
causes and social issues. An increasing number of NFT projects have taken the
initiative to donate a portion of their profits from sales to charities or
conduct charity auctions.
As a result, nonprofits have received some extremely generous donations from the
NFT community. (In some instances, the price of a blue-chip NFT can reach into
the millions, so we’re not talking about small change.)
In fact, several projects have given hundreds of thousands, even millions, of
dollars to nonprofit organizations. Through these efforts, NFT creators are
fostering impactful relationships with charities, both by endowing them with
charitable support and by sharing their passion with a devoted fanbase.
NFT PROJECTS ARE DONATING MILLIONS TO CHARITIES
In March 2021, Twitter CEO Jack Dorsey sold an NFT of his first tweet, fetching
1630 ETH (appx. $2.9M at the time of sale), which he donated to charity. We
applaud Jack’s use of his platform for good, and countless other NFT creators
have similarly done their part to help make a positive social impact.
Numerous NFT artists and projects are proud to donate a portion of their
proceeds from sales to charitable organizations. Blazed Cats, for example, has
been one of the most charitable NFT project ever, sending ETH worth more than
$273,000 to nonprofit Mental Health America.
An artist from the Art Blocks generative arts community made one of the largest
NFT donations ever recorded, a gift of ETH worth approximately $3.5M to Médecins
Sans Frontières (aka “Doctors Without Borders”) Australia.
Here are some of the most charitable NFT projects funding nonprofits that use
The Giving Block’s technical solution for crypto donations:
THE MOST CHARITABLE NFT PROJECTS (AS OF NOVEMBER 5, 2021):
RankNFT Project NameCrypto DonatedDonated Amount (USD Value)Charity1Generative
Art Community on Artblocks.ioETH$3,578,927.65MSF Australia2Floki
InuDAI$1,497,328.17Big Green, Pencils of Promise3Bored Ape Yacht
ClubETH$924,516.72Orangutan Outreach4Cyber KongzETH$562,418.16Virunga National
Park5Blazed CatsETH$302,865.90Mental Health America6Woodies
NFTETH$225,960.69Trees for the Future7Trippy Bunny TribeGUSD$220,886.00American
Foundation for Suicide Prevention8HeveyETH$193,108.34Food for Life Global9World
of WomenETH$190,688.11Code to Inspire, Rockflower, Too Young to Wed, She’s the
First10@jackbutcherETH$187,473.76CARE11The Lost GlitchesETH$181,816.30No Kid
Hungry, Code to Inspire, Cedars Home For Children12Dogs of
ElonETH125,269.56TeamSeas13GHXSTS X Cool CatsETH$124,047.86Rainforest Foundation
US, Animal Equality, Hope for Paws14Baby Boo Kitten ClubETH$123,961.88Hope for
Paws, Edinburgh Dog and Cat Home, Wolf Trap Animal
Rescue15ThugbirdzBTC$115,995.57Wildlife SOS16Women and Weapons
NFTETH$104,019.43Malala Fund17Famous Fox FederationETH$96,608.81Wolf Trap Animal
Rescue, Wolf Conservation Center, Action Against Hunger, Rainforest Partnership,
Save the Children, Children International, SOS Children’s Villages &
more18Boring Bananas CoETH$95,278.38Malala Fund, Water Wells for Africa, Code to
Inspire, Action Against Hunger19DOJICREWETH$80,677.93Children’s Cancer
Association20Blank Face NFTETH$70,648.60Mental Health
America21SkvllpvnkzETH$33,476.40Water Wells for Africa, No Kid
Hungry22uwucrewETH$62,592.96African Wildlife Foundation, FOUR PAWS USA, Crypto
Kids Camp23Labyrinth ArtETH$54,984.24Notes for Notes24Lost Boys
NFTETH$50,938.20Mental Health America25Sappy SealsETH$50,862.01The Water
Project26SolagonETH$50,656.80Save the Children27The Slow PatrolBTC$50,119.99The
Sloth Conservation Foundation28BelugiesETH$50,033.48Ocean Defenders
Alliance29Goobers NFTETH$49,931.75American Cancer Society30Skully Boys Bones
ClubBTC$40,031.01National Pediatric Cancer
Foundation31SatoshiblesETH$33,632.00Built with Bitcoin
Foundation32CovidPunksETH$32,656.20CARE33Monster BudsETH$31,013.99Ascend
Athletics34Pandamonium WorldETH$29,551.101000 Dreams Fund, Tunapanda Institute,
Code to Inspire, Wolf Conservation Center35SollyfishETH$28,881.23Sea Shepherd
Conservation Society36Boring Ape ChroniclesETH$28,052.34Friends of Bonobos,
Orangutan Outreach, Autism Speaks37Crypto TittiesETH$26,658.15American Cancer
Society38Happyland Gummy BearsETH$25,376.94Mental Health America39Dirtybird
Flight ClubETH$24,994.27Notes for Notes40Cool CatsETH$21,715.26Muttville Senior
Dog Rescue41Bubblegum KidsETH$17,623.15Children International42Toasty
TurtsDAI$17,186.44Sea Shepherd Conservation Society43Super
NftyETH$14,767.28Trees for the Future44Top Dog Beach ClubETH$13,230.32She’s The
First45NFTzETH$10,916.28People for the Ethical Treatment of Animals
(PETA)46LittleGhostsETH$10,000.85Save the Children47Everyday
SlothsETH$8,664.77The Sloth Conservation Foundation48Uncanny
UnicornsETH$6,925.34Outright Action49PPPandasETH$5,636.45Mona Foundation50Yura
MironETH$4,021.53The Water Project51Maison De GoatETH$3,572.06Little Pink Houses
If you run an NFT project and want to support a charity, get in touch with us
for assistance.
HOW NFTS CAN SUPPORT CHARITIES
For many mission-driven organizations, a single major gift from an NFT project
can be a game-changer. In particular, smaller nonprofits can significantly grow
their operating budgets thanks to crypto and NFT-related charitable giving.
Here are four of the ways that NFTs can help support nonprofits:
1. CORPORATE GIVING PARTNERSHIPS
Because of their vast resources, big brands are often quick to jump on new
trends and ideas. By working with a well-known corporate partner to host an
auction for charity, NFT artists can use their creative powers to raise large
sums of money for good causes.
Recently, Coca-Cola partnered with the 3D artists at Tafi to auction off
special-edition NFT “loot boxes,” resulting in $575,883.61 donated to the
Special Olympics.
2. CELEBRITY-DRIVEN NFT AUCTIONS
Another way to bring in visibility and bidders is to link your NFT fundraising
effort to a famous person. In August 2021, NFT platform Cryptograph and
photographer Davis Factor teamed up to auction off eight never-before-seen
photographs of the late NBA star Kobe Bryant. All of the proceeds will go to
benefit the Mamba and Mambacita Foundation.
Factor and Tommy Alastra, co-founder of Cryptograph, sat down to speak with news
outlet Cheddar about the fundraising project:
Decrypt reports that “any future secondary market sales of the Bryant NFTs will
generate a share of the transaction price to be donated to the Mamba & Mambacita
Sports Foundation.”
3. THE NFT AS A CHARITABLE INVESTMENT
Instead of donating a cash (or crypto) gift, a generous collector can choose to
purchase and donate an NFT to charity. A recent article from Yahoo noted that
“this would be similar to how people donate valuable items for charity auctions
or other events to raise money.”
If you’re an NFT creator interested in taking this approach, it is best practice
to first ask if the charity is comfortable holding onto the NFT as an
investment, or if they would prefer to sell it and convert the proceeds to cash.
In many cases, nonprofits have specific bylaws that would prevent them from
holding an NFT.
4. DIRECT DONATIONS TO CHARITIES
In many cases, NFT artists simply want to identify an impactful charity and
coordinate with them directly, without any celebrity endorsements or corporate
backing. We’ve seen many amazing relationships between NFTs and charities
develop as a result.
EXAMPLES OF NFT PROJECTS DONATING TO NONPROFITS
WOODIES X TREES FOR THE FUTURE
Trees for the Future isn’t just a nonprofit concerned with improving the
environment. Its unique approach to sustainability helps educate communities
about regenerative agriculture, a practice that aims to be more than a “one-time
solution” to a complex global issue.
When NFT project Woodies began donation to the organization in 2021, it
radically changed the level of impact that Trees for the Future could make.
In 2022, Woodies even received an award at NFT.NYC, the world’s premier NFT
conference, for its support of environmental sustainability.
TRIPPY BUNNY X AMERICAN FOUNDATION FOR SUICIDE PREVENTION
In August 2021, the NFT artists known as Trippy Bunny announced their intention
to donate 100% of proceeds from mint sales from its flagship drop would be given
to the American Foundation for Suicide Prevention. In all, the sales raise
$220,886 to help address mental health and suicide prevention.
“Each of our team has been touched by suicide in our lives, whether it be
friends or family, and we felt this would be of greatest impact to the world
overall, especially now,” the collective said in a statement on their Twitter
account.
BORED APE YACHT CLUB X ORANGUTAN OUTREACH
One of the biggest names in NFT culture is Bored Ape Yacht Club (BAYC), a
collective that creates ape-themed works that are popular with crypto
enthusiasts as well as athletes like Steph Curry and Odell Beckham, Jr. From
part of their NFT sale proceeds, BAYC has made several ETH donations to
Orangutan Outreach, a nonprofit that protects orangutans in their native forests
of Borneo and Sumatra and provides care for orphaned and displaced orangutans.
BAYC’s donations have allowed Orangutan Outreach’s founder Richard Zimmerman and
his team to build sanctuaries for orangutans as soon as they receive
governmental approval to do so. Otherwise, he said, they would have to wait and
run a capital campaign. The gifts, totaling an incredible $850,000 to date,
weren’t merely appreciated by Orangutan Outreach; they became the catalyst for a
whole new fundraising strategy.
> My thinking was: If I’m going to get my organization into crypto, I have to
> put my own money where my mouth is and actually learn about crypto. So I set
> up a wallet for myself to get started. The next step was to invest in crypto
> personally in order to learn more about the process, the technology and the
> culture. A bit later, after Orangutan Outreach received a generous donation
> from an NFT artist, I did the same thing with the NFT space. I felt I had a
> responsibility to learn more about NFTs. — Richard Zimmerman, Founder,
> Orangutan Outreach
Like many other nonprofit leaders today, Zimmerman has discovered that the
crypto and NFT communities are serious about making a positive impact on the
world by supporting charities. To get more immersed in the culture, Zimmerman
purchased a Bored Ape NFT, which he uses as his organization’s Twitter avatar.
He also regularly engages in conversations with BAYC fans on their Discord
channel, and notes that he has gained new supporters as a result of BAYC’s
highly-visible form of philanthropy.
READY TO EMBRACE NFTS AND CRYPTO DONATIONS?
With such a new trend still catching on in the mainstream, it’s easy to imagine
a future for NFTs with greater popularity, higher sales volume, and more
fundraising opportunities. As we enter a new digital era powered by the
blockchain, it’s clear that NFTs are helping to redefine the “art” of
fundraising.
For nonprofits interested in connecting with NFT artists, accepting donations in
Bitcoin and other cryptocurrencies is the first step.
The Giving Block enables charities, foundations, nonprofit and faith-based
organizations to fundraise crypto with a secure, easy-to-integrate solution.
See why top charities rely on The Giving Block for their crypto fundraising
needs.
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