Did you know that more than $12 Million was donated from NFT projects to charities in 2021? NFT fundraising is a fast-growing trend in giving that’s drawn the interest of organizations from across the nonprofit sector.
Looking into how you can use NFTs to support a cause you’re passionate about, or how to plan a fundraiser for your 501(c)3 organization? You’ll need to know several key terms to get you started. Luckily, our NFT fundraising glossary has you covered with over 25+ essential definitions—from floor price to smart contact.
NFT Fundraising Terms
Here are the most essential, must-know terms for nonprofits engaging in NFT fundraising efforts. You can bookmark this page and refer back to this glossary when creating your first NFT fundraiser.
1/1 (a.k.a., “one of one”)
An original NFT artwork that has no duplicate version.
Bag Season
The annual year-end nonprofit cryptocurrency fundraising season, starting in late November and running through December 31.
Blockchain
A digital ledger of transactions that is operated by a decentralized network of validators that contribute a share of computing power.
Charity Auction
An auction that is run with the express purpose of donating all or a portion of the proceeds to a charitable organization, fund or cause.
Crypto Philanthropy
The act of donating cryptocurrencies to charitable organizations.
Cryptocurrency
A type of digital asset that utilizes technologies like cryptography and blockchain to establish a secure, decentralized global framework for financial transactions to be conducted.
Capital Gains
A tax owed on the appreciation of assets like cryptocurrencies when sold or exchanged.
Decentralized Autonomous Organization (a.k.a., “DAO”)
A formal community structure for governance of crypto- and blockchain-based initiatives, including some NFT projects, in which non-hierarchical decision making is typical.
Decentralized
Operating without a central hierarchical institution, such as a central bank of a nation that issues government-backed currency.
Discord
A popular digital platform for conversation, community engagement and social networks.
Drop
An official release or launch of an NFT collection.
Dutch Auction
A type of auction in which an initial asking price is set, but goes down until a bidder agrees to purchase the item.
Ethereum
One of the most popular blockchains in the world, particularly with the NFT community. Also another name used for Ether, or ETH, the currency associated with this blockchain.
Floor Price
The lowest sale price for any single item in an NFT collection.
Gas Fee
The fee for conducting a transaction on a blockchain.
Generative Art
A type of popular digital art that uses modern technology to generate unique variations or combinations of creative elements.
Ledger
A place where financial transactions are recorded.
Marketplace
A platform for buying and selling NFTs.
Mint
The first purchase of an NFT from the creator, at which point the NFT is first recorded on the blockchain.
NFT
Acronym for “non-fungible token.” A digital store of data used to verify ownership of an asset such as an original artwork.
#NFTuesday
A dedicated day to celebrate the generosity of the NFT community, held annually in December.
Perpetual Giving
A way to automate cryptocurrency donations to charitable organizations via smart contracts, which initiate transactions when certain conditions are met.
Pre-Mint
The stage prior to minting an NFT artwork or collection, often when collectors can register for the ability to mint these works.
Proceeds
Profits from the sale of an NFT.
Re-Sale
The sale of an NFT after purchasing it.
Royalty
The proceeds from an NFT sale that will go back to the creator(s) from mint as well as secondary sales.
Secondary sale
Any future sale of an NFT after the work is minted, with the price agreed upon by the seller and buyer.
Smart Contract
A method of programming financial transactions to initiate once certain predetermined conditions are met by one or more parties.
Solana
One of the most popular blockchains in the world, as well as the name of the cryptocurrency (SOL) associated with the blockchain.
Stablecoin
A type of digital currency that is pegged to an asset like a government-backed currency such as the US dollar, or the price of gold.
Tezos
Another popular blockchain with the NFT community, and the name of the cryptocurrency (TEZ) associated with the blockchain.
Learn How to Plan an NFT Fundraiser
Looking for a comprehensive how-to guide for nonprofit organizations planning to fundraise with NFTs? Download The Giving Block’s free guide, The Rise of NFT Fundraising.
