As crypto enthusiasts, we know how great it feels to support an important cause with a cryptocurrency donation. Just ask NFT creators like Jack Butcher, Inna Modja and Yam Karkai, who are all featured in our Faces of Crypto Philanthropy series.
But do you know what makes donating crypto royalties from an NFT project even more rewarding? Knowing that it’s so easy to split royalties with a charity via an automated smart contract that doesn’t require extra effort when launching your collection.
Below, you’ll discover how The Giving Block and NiftyKit have made charitable giving effortless for NFT creators, and how to start making an impact with your artwork and community today.
Why It Makes Sense to Automate Your Charitable Giving
Collectively, NFT creators have donated millions of dollars in cryptocurrency donations to charities. These generous donors are part of the crypto philanthropy community that includes nonprofit fundraisers, blockchain builders, DAO members and many more.
Anyone can use The Giving Block’s donation form, trusted by thousands of charities, to give directly from their crypto wallet.
But as a creator, you may not want to donate a single lump sum of crypto. Why not? Here are a few possible reasons:
- You may want to give a little bit at a time, similar to a monthly recurring donation.
- You may not have minted yet, so you don’t have any royalties to share but you know you will eventually want to donate some of your profits to a good cause.
- Or you may just want a more automated process so that you can devote more time to your creative process.
If any of those reasons apply to you, that’s where NiftyKit’s revenue split function comes in handy.
How to Set Up Revenue Split Donations
Creators that mint, manage, and sell their art on NiftyKit have the option to donate a portion of their NFT earnings to empower charities, universities, nonprofits, and other charitable organizations that make an impact across the world.
This is done via a smart contract, which can automate blockchain transactions when certain conditions are met. In this case, you’ll be assigning a portion of your NFT sales revenue to be sent directly to a charitable organization.
Watch this video or follow the step-by-step instructions below to turn your NFT collection into a vehicle for charitable giving:
Step 1: Click the “Revenue Split” Tab
This will open up a lightbox window. By following the prompts in this window, you will be able to add additional recipients to your NFT sales in a matter of seconds.
FIrst, choose the network you would like to use for your smart contract (e.g. Ethereum Testnet).
Step 2: Choose a Charity
NiftyKit has integrated a list of thousands of charitable organizations using The Giving Block to accept crypto donations. Select an organization (e.g. Save the Children) from the list.
Make sure to choose a split amount. That’s the percentage of royalties that you would like to donate to this organization.
Next, click “Continue.”
Step 3: Click “Create Now”
A summary of the Revenue Split will now appear. Review these details to ensure that it is to your liking, and click “Create Now.”
That’s it! Once you’re done, you don’t have to worry about manually donating crypto to charity—it’s all taken care of.
When you donate to an organization using The Giving Block’s crypto donation form, you will receive a receipt for tax purposes. You will want to hold onto that receipt in order to maximize the tax benefits of donation crypto.
Donating Crypto vs. Donating Cash
Now, before you stop and think this all might be unnecessary since you normally donate cash to charity, here are three reasons why donating crypto is going to be easier for you and more tax-efficient than donating cash:
- Your royalties will be in crypto (e.g. ETH, SOL, XTZ), so it’s easier to just give crypto directly to a charity that accepts it.
- Selling crypto means you will owe capital gains tax, but donating crypto directly means you won’t pay capital gains tax on those appreciated assets.
- With a reduced tax burden, you will have more to give to the causes that you believe in.
TL;DR: Donating crypto is a win-win scenario for you and the organizations you support. (Looking for a deeper dive? Explore the benefits here.)
Make a Difference with Your NFT Collection Today
Now that you have the knowledge to use your NFT collection to drive social impact, bookmark this page for your next mint so that you can be part of the growing movement in the NFT community to create a better world.