Charitable groups are slowly venturing into the Metaverse.

Since 2021, the trend of making cryptocurrency donations has been on the rise, with both the volume of donations and the number of non-profits starting to accept crypto continuously growing. Many organizations are beginning to recognize the advantages of leveraging digital currencies and NFT contributions for their fundraising efforts.

Donating in cryptocurrency offers several practical advantages, particularly given the expanding user base and the overall growth in the global crypto market. As crypto assets are often treated as property, they also provide tax benefits – donors can save between 20% to 30% compared to traditional fundraising methods.

Alex Wilson, the co-founder of The Giving Block In conversation with Metaverse Post, representatives discussed the evolving landscape of donations and charity funding powered by Web3 technology. The Giving Block operates as an all-in-one crypto payment processing service, fundraising platform, and consultancy, exclusively catering to non-profits and currently partnering with approximately 1,500 charities.

Is the current bear market impacting donations in crypto assets?

While the crypto market is grappling with a bear phase, with Bitcoin values dipping under 50% of its peak, the reality is that this downturn has less effect on crypto donations than one might expect. In fact, it’s the volatility that often boosts crypto donations. Wilson elaborated:

According to Wilson, \"Volatility actually works in favor of our business and clients by creating additional tax incentives. When individuals sell, they trigger taxable events, which incentivize transactions. During turbulent times in the market, we frequently witness an uptick in donations as people engage in more trading. Certainly, a prolonged bear market would not be beneficial for anyone. But in the short term, there typically isn’t a significant downturn in donations.\"

Raising funds through NFTs and within the Metaverse

Wilson mentioned that there has been a remarkable surge in NFT-driven philanthropy, with around 25% of their monthly transactions linked to NFTs. This occurs when creators launch an NFT collection or single NFT, with all proceeds benefiting a charity.

He further explained, \"With NFTs, not only are initial sales contributing to charities, but royalties and secondary market fees also go toward these organizations, creating a continuous revenue stream for non-profits that wouldn’t be achievable through traditional forms of art. In contrast, selling conventional art would necessitate manually finalizing donations every time a piece is purchased. NFTs simplify this process, allowing for a more systematic and sustainable approach to fundraising.\"

Recently, Stella Artois unveiled an NFT collection called 'Drop Artois' in collaboration with Vayner NFT, which featured 1,024 water-themed NFTs and raised substantial funds for water.org, an organization dedicated to resolving the global water crisis.

While the discussion surrounding the Metaverse is gaining momentum in the non-profit sector, a clear strategy is yet to emerge. Wilson noted that some organizations have been considering hosting virtual galas, fundraising dinners, and similar events within the digital realm.

He mentioned, \"It’s definitely on our radar, and we are looking into it this year. However, I believe it will take time before fundraising through the Metaverse becomes a common practice among non-profits.\"

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