NFT Fundraising Glossary: 25+ Key Terms & Definitions

by | Sep 16, 2022

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. 

Subscribe for the Latest Updates

Related Articles

5 Ways Your Crypto Donation Can Support Mental Health Awareness May is Mental Health Awareness Month. Show your support with a crypto donation and by being an advocate for destigmatizing mental health.
Crypto Taxes: How Does Donating Bitcoin Affect My Taxes? For the last few years, the tax treatment of cryptocurrencies like Bitcoin in the United States was based on one document.

Featured Articles

Subscribe for the Latest Updates

Related articles

Cover Image for Cryptocurrency Taxes Article Cryptocurrency Taxes For 2022: How To Reduce Liability & Invest In Good December 16, 2021 Posted in: Donations & Taxes, Donors, Taxes If you own cryptocurrency like Bitcoin, you may owe taxes on it. Prepare to file your next tax return and discover how you could minimize your cryptocurrency tax burden. Read more
BLOG Cardano Donation Highlights | The Giving Block Input Output Global Donates 500,000 ADA For Humanitarian Aid in Ukraine September 1, 2022 Posted in: Donor Impact, Donors Learn about Input Output Global’s 500,000 ADA crypto donation to support humanitarian nonprofits active in Ukraine. Read more
Image for Giving Tuesday Charities Article 17 Types of Giving Tuesday Charities that Accept Crypto Donations November 23, 2021 Posted in: Crypto Giving Tuesday, Donors, Nonprofits, Year-End Giving Giving Tuesday is one of the biggest giving days of the year. Here's how to give crypto donations to your favorite Giving Tuesday charities. Read more