Non-fungible tokens (NFTs) have become a global phenomenon and a growing force for good. Projects like the Bored Ape Yacht Club have reached mainstream culture, while NFT fundraising has become a viable revenue stream for thousands of nonprofit organizations as NFT creators have given millions of dollars in crypto donations to charities.
Are you interested in supporting your favorite nonprofits with NFTs? There are a few ways of doing so, and your contribution can help organizations grow their mission and further their impact.
If you’re an NFT studio, creator, collector, or simply curious, read on to see how you can get involved in NFT fundraising and learn all about NFTuesday, The Giving Block’s special day dedicated solely to NFTs.
Common Options for Donating Proceeds from NFT Sales or Fundraisers to Charities
NFT fundraising is similar to traditional fundraising strategies such as art auctions and crowdfunding. Many nonprofits hold NFT charity auctions or partner with NFT creators to receive the proceeds from NFT sales. Thanks to a recent partnership between RareCircles and The Giving Block, organizations can also now create and sell their own NFT collections.
Note that it is not recommended for nonprofits to receive the NFT itself. Rather, nonprofits are advised to receive donations from the proceeds of an NFT sale or a percentage of royalties.
If you’re interested in supporting nonprofits with an NFT, you can:
- Sell the NFT and donate the proceeds via a one-time charitable contribution.
- Contribute the NFT to a charity auction. (This was one of the many ways Hackatao supported Outright International and other LGBTQIA+ charities in 2022.)
- Commit to donating a percentage of royalties, either from your mint or secondary sales of the NFT.
How to Donate NFT Proceeds Through The Giving Block
Check to make sure the organization you wish to donate to accepts crypto; for nonprofit organizations to accept a direct form of charitable giving from the NFT community, accepting cryptocurrency donations is a must. This is because NFTs are listed, bought, and sold on marketplaces that are equipped to handle cryptocurrency transactions.
If a nonprofit accepts crypto donations, an NFT creator or collector can directly donate the proceeds from their NFT sale. An all-in-one solutions provider like The Giving Block makes it easy for nonprofits to fundraise multiple crypto assets, including NFTs, as well as generate tax receipts for donors.
Here’s how to donate:
- Find the charity’s donation page. You can make donations manually using the charity’s donation widget.
- Or, you can copy and paste the nonprofit’s wallet address into your smart contract (many NFT projects that pledge to make recurring charitable donations choose this option). Designate the intended percentage of profits to be donated, and which conditions determine when the donation is made.
- When donating via the widget or generating the wallet address, make sure you select the kind of cryptocurrency you wish to donate. The Giving Block supports more than 100 cryptocurrencies, including popular ones among NFT creators such as Ethereum, Solana and Tezos.
- Post about your donation on social and tag @thegivingblock!
What is NFTuesday?
NFTuesday is The Giving Block’s day-long celebration of NFT philanthropy and the countless crypto heroes from the NFT community that work hard to make a positive impact in the world.
For much of human history, art and social progress have gone hand-in-hand. The blockchain era is no exception: over the past year, the NFT community has donated millions of dollars in crypto to charitable organizations.
We’ve been joined by NFT marketplaces, artists, galleries, projects and studios that are helping bring visibility to this incredible year of impact and raise more coin for important causes.
In 2022, donations from NFTs were made to all kinds of impact areas including animal welfare, women and girls empowerment, equality, and humanitarian aid—with participation from major NFT projects such as Fruit Salad, Brotherhood, and #ScrewCancer.
NFTuesday is the biggest day of the year for our celebration of NFT creators and collectors—but nonprofits benefit from your support all year round.
Make an NFT Donation Today
If you’re interested in supporting charities through NFTs, there are many ways you can get involved. The Giving Block is your one-stop solution for donating the proceeds from NFT sales and getting in touch with organizations that have causes you’re passionate about.
Make a charitable contribution today and help the organizations you know and love accomplish their missions through the power of NFT philanthropy.
How can my NFT project support a charity?
There are many ways you can use NFTs to support charitable causes. You may donate the proceeds from an NFT sale or the royalties from mint or secondary sales. Make a one-time donation by using an organization’s donation widget, or commit to recurring donations by putting the nonprofit’s wallet address in your smart contract.
Can I put a nonprofit’s wallet address into my smart contract?
Yes, many NFT projects make recurring charitable donations via smart contacts. To do so, you must first retrieve the wallet address for the nonprofit of your choice. When you have selected a charity or fund to support, visit its donation page. From there, follow the prompts on the donation widget and be sure to select the cryptocurrency that you intend to donate. Copy the wallet address and paste it into your smart contract. Designate the intended percentage of profits to be donated and which conditions determine when donations should be made.
Which cryptocurrencies do you accept?
Nonprofits using The Giving Block accept more than 100 cryptocurrencies, including the most popular cryptocurrencies among NFT creators such as Ethereum, Solana and Tezos.
(NOTE: Please double-check that you have selected the correct cryptocurrency that you wish to donate. If you do not do so, your charitable donation will likely not be received by the nonprofit and your crypto may not be retrievable.)
What happens if my NFT project donates an unsupported token?
We don’t want this to happen. Your crypto could be unretrievable, for both you and the nonprofit that you wanted to support. If you are unsure whether or not a cryptocurrency is accepted, please check the list here. If you still have questions, please DM us on Twitter.
How should I make a large crypto donation from my NFT project?
Please visit our Private Client Services page for assistance.
What is NFTuesday?
NFTuesday is a day-long celebration of the NFT community’s generosity, which has donated millions of dollars to charities of all kinds. Countless NFT marketplaces, artists, galleries, projects and studios have made crypto donations or supported charitable giving via their platforms. NFTuesday was created by The Giving Block in 2021.
How can I get involved in NFTuesday?
You can help spread the word about the impact of NFT projects on charities and causes, or even make a donation to one of 2,000 charities. Want to be part of the giving spirit this December? We’ll be celebrating all year long via Bag Season, The Giving Block’s annual year-end crypto fundraising campaign for nonprofits and charitable organizations.