Charities Turn to NFTs for Fundraising

As non-fungible tokens (NFTs) grow in popularity, a number of charities have attempted to base their fundraising around the digital tokens, with mixed results. 

As The Associated Press reported Wednesday (Dec. 29), this issue is complicated by the fact that NFTs employ technology that have attracted the attention of regulators and accountants. 

The report tells the story of Sosteno, a New Jersey healthcare charity that learned last month that it would receive a donation of about $58,000, in the form of an NFT.  

While accepting the donation was easy, thanks to the help of Giving Block, a nonprofit that helps charities accept crypto, Sostento’s CEO told the AP the organization’s accountants advised against accepting NFTs and cryptocurrency directly, which is why working with an intermediary to convert NFT proceeds to actual dollars was important. 

“It took a long time to understand how we could actually make this possible,” said Joe Agoada, Sostento’s chief executive. 

Read more: Visa Jumps From Payment Rails To A Ride On The Red Hot NFT Train 

Giving Block says they’ve helped process about $1 million Giving Tuesday donations that came from NFT auction proceeds. Earlier this month, the group launched NFTuesday, a day devoted to increasing NFT-connected philanthropy.  

Meanwhile, some nonprofits have tried to use NFTs to attract a wider net of donations.  

In July, the Florida chimpanzee refuge Save the Chimps made NFTs from finger paintings done by three of its residents and listed them for auction.  

The NFTs were priced to sell at a value equivalent to around $25, and have raised just a few hundred dollars so far. 

“The exciting part was they were all first-time donors,” said Sara Halpert, Save the Chimps’ marketing director. 

Read more: NFTs Flip the Script on Fast-Food Toys With Crypto Collectibles 

We’ve spotted this trend before. As we reported in September, a number of brands have tried to use NFT mania to drum up interest in their products.

Dole earlier this year announced plans to sell pieces of original artwork as NFTs and donate the proceeds to hunger relief. Procter & Gamble, meanwhile, auctioned off artwork inspired by its Charmin brand with plans to donate those proceeds as well.