As the adoption of cryptocurrencies and NFTs grows exponentially year on year, charities and non-profit organizations have begun to incorporate them for fundraising. In 2021, the number of donations in digital assets made through ‘The Giving Block’ organization surpassed those made in 2020 by 1558% (amassing $69,644,535 in total), and 2022 looks even more promising. The director of Crypto Consultants UK commented that crypto donations offer multiple advantages, including the following:
Decentralized Funding
Decentralization and quick money transfers make crypto and NFT donations efficient and unrestricted. The crypto expert shared a few examples:
“Many have also learned from the situation in Canada where donations were frozen. This pushed charities towards NFTs and crypto. As well as some recent examples of NFTs being used by charities for Covid-19: Aid, a UK-based charity, auctioned off their logo as an NFT to raise funds.”
In Canada, the government froze money raised to support the Freedom Convoy – a protest against restrictions caused by the pandemic. Almost $10 million which had been collected on the GoFundMe platform was made unavailable for withdrawal. The protestors then turned to Bitcoin due to its non-traceable structure and resistance to censorship, raising $1 million.
In a similar vein, Ukraine has received millions in cryptocurrency and NFT donations. The besieged nation has been suffering through a bloody war and requires large-scale financial support. Government officials have seen many benefits from receiving funds in crypto-assets.
To better facilitate digital asset payments, Ukraine’s Ministry of Digital Transformation launched its own crypto fundraising site aid, while the national bank of Ukraine received $1 million from Solana’s community. DAOs, individual artists, and art projects have also expressed their support for the country through crypto philanthropy.
To attract investors and supporters, some NFT projects pledge to donate a portion of their profits to environmental, medical, and humanitarian non-profit organizations. Fortunately, blockchain technology allows users to ensure that the funds are indeed traveling to those destinations, and these Web 3.0 initiatives help make the world a better place overall. Unfortunately, NFT projects use the ‘charity feature’ as a marketing strategy and do not always fulfill their promises.
On the Flipside
Why You Should Care
In many cases, donations in digital assets can be more trustworthy than those made in fiat currencies.
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Source: Cryptocurrency - investing.com
