Can NFTs Mobilize CSO Donors and Volunteers (Using Greener Tech)?
Historically, CSOs have recognized the contributions of donors and volunteers through acknowledgements, small (often, branded) gifts or large naming rights. However, according to Emily Kostic of the Ad Council, non-fungible tokens (NFTs) offer a new way for CSOs to fundraise—and even provide residual funding if the CSO energizes a marketplace and community.
How do the tokens work? They represent ownership of one-of-a kind items and use blockchain technology to ensure that each NFT can only have one official owner at a time. A CSO can use its own images, video, music or designs (or recruit well known creator to partner with) and transform them into ‘minted’ NFTs via blockchain. These tokens are then purchased with cryptocurrency. Thus, a CSO can sell or re-sell NFTs at a profit to raise funds, or auction off NFTs to fundraise for specific causes.
Since owning NFTs make people feel like they are part of a special group, it’s important for CSOs to continue engaging and incentivizing these buyers on relevant social media channels, and create a vibrant marketplace. Currently, most NFT sales use Ether and other cryptocurrencies that are known to be unsustainable, but the newest version of the Ethereum cryptocurrency will reportedly reduce that energy use by over 99%.