With many people now asking what comes next for NFTs, nonprofits and charities are exploring and maximizing their power for charitable giving.
Depending on the person that you ask, NFTs are either a new and exciting method of investing or a bearish overhyped industry. Irrespective, journalists, reporters, collectors, and investors have paid lots of attention to the budding NFT market in the past year.
Nonfungible tokens continue to be one of the most popular Web3 entry points, a chance for everyone from casual art fans to crypto billionaires to own some unique asset stored on the blockchain.
As the NFT visionaries and developers have recently pointed out, NFTs also can be used for some incredible causes beyond digital asset collection. In the last six months, communities have launched nonfungible tokens to raise support for causes like testicular cancer, the war in Ukraine, and human trafficking.
While most people think the NFT trend is now on the right path to sustainable growth, its growth potential as a tool for charities is expected to reach some exciting new highs in the coming months. The mission-driven innovation is not a new concept for the cryptocurrency and Web3 worlds.
Metaverse worlds link people that many have otherwise never met in the physical world. DeFi and digital currencies have developed financial access and freedom for millions, or billions, of people. In the majorly related longevity space, which entails the science behind healthier and longer human lives, research advancements are making it quite possible for people to live comfortably in their bodies for longer.
The world that we live in now is quite different than it was some five years ago, and it is not stopping. The next element that is set for disruption or upgrading is the charitable giving initiatives through NFTs.
In the mid-2000s, there was a trend where supporting the favorite causes became quite fashionable. WWF shirts, Bright yellow Livestrong bracelets, and tote bags sporting charitable foundation logos were an easy way for people to show to the world that they cared a lot about a particular cause.
While the bumper stickers and printed water bottles are still a common avenue for people to show off their philanthropic side, there are no high-quality, top-level rewards that provide the same visibility. Whenever donors give to a charity, their contribution is normally just recognized with a ‘thank you’ note and the chance to have their names listed on a commemorative plaque.
That is definitive proof, although it does not have the engagement and community that people find inspiring. NFTs linked to charitable giving are making showcasing charity support quite fashionable in the digital space. The nonfungible tokens created by charities are designed with a cause in mind and also designed to be attractive and exciting.
Acquiring a mission-driven NFT also offers one a beautiful piece of digital art to show to the entire world. With Spotify and Instagram moving to bring NFT functionality to their platforms, it appears like the future of NFT-driven donations appears as it will increasingly become social.
There is also the possibility for the communities already on these social platforms to rally around some meaningful causes, as happened with the Twitter community helping fund a person overwhelmed by high medical costs. The cryptocurrency community has now proven itself to be a powerful force often, making analysts confident in a bright future for charity and NFTs.
NFTs Benefit Foundations And Artists
While lots of attention was given to the celebrities joining the NFT craze and new drops that come with rare art, less explored is what buying an NFT means for a charitable organization. It is time for the philanthropic industry to embrace the crypto wave since adopting digital currencies and technologies like NFTs can attract many visionary investors who are keen on innovative ideas and new ways of looking at the world.
When the visionaries, and many other people, acquire a purpose-driven NFT, they get a chance to uniquely showcase their support for a cause. It is highly important not to ignore the artist in all these conversations.
Developers and content creators are using NFTs to redefine their relationships with supporters, which includes encouraging their fans to support causes they most care about. There is a common misconception that buying NFTs is a new method for investors to spend their money.
All mission-driven NFTs are challenging the narrative by showing the entire world that NFTs are a method to unite charitable giving and supporting the artists simultaneously. They are letting organizations benefit from new technology while remaining true to their values and mission.
Thus, longevity is one field that will adopt the technology with ease. The longevity supporters appear to be forward-thinking luminaries who also are crypto enthusiasts – an ideal combination for NFT-related giving.
A New Approach For Charitable Giving
Generally, the phrase ‘charitable giving’ has had some element of ‘old-school’ philanthropy. It still feels great supporting a cause, but it leaves a lot to be desired in terms of continuous engagement. Creating a community of innovation-focused and passionate supporters is a great way for the charities to reach new audiences and achieve their fundraising goals.
However, it will take a shift in the way we think about giving to make it a reality. The new charitable giving is crypto-native, social, and decentralized. By accepting crypto donations directly, it is possible to give to the foundation directly, without needing to cash out your crypto funds and get subjected to tax responsibilities.
The social element that comes with giving will empower you to highlight the causes you care most about via your NFT collection. Also, it will be entirely decentralized, meaning that anybody, anywhere in the entire world can support meaningful causes. While the donor recognition dinners might eventually become a thing of the past, a virtual network of linked supporters with different backgrounds and perspectives provides an exciting alternative future.
NFT-based utilities are also a majorly powerful tool in assisting communities to track membership and reward contributions with various perks and access to exclusive opportunities and services beyond the distribution of a digital image.
We will soon live longer and live in a highly connected society than ever before. It then follows that we should be more supportive and philanthropy-minded. However, to do all that, we have to introduce charitable giving into the fold.