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NFTs For Social Cause
By Ruchi Sharma
NFTs are gradually transitioning from a source of entertainment to a means of supporting social and other relevant causes. If you’re a creator interested in raising funds for social causes through an NFT project, here’s what you need to know, from idea generation to community building.
Getting started
The first step toward a successful launch is developing a concept. Current events, social justice issues, and personal connections may inspire your collection.
It’s also important to consider practical issues, such as whether you want your collection to focus on PFP, one-of-a-kind artwork, or an entirely unique execution.
Women Rise, a profile picture (PFP) NFT collection featuring colorful artwork, celebrates female diversity worldwide. The project gave $120,000 to organizations that support girls’ education, including the Malala Fund, which was founded by Nobel laureate and education advocate Malala Yousafzai.
Launching the project
Creating buzz in your community after the artwork is completed is critical to raising awareness. While marketing strategies are important, you can tap into the goodwill of your existing followers without hiring a public relations firm for the initial drop. Consider publishing your projects on a popular NFT platform such as OpenSea and spreading the word via Twitter, Instagram, and other social media platforms. It is critical to concentrate on developing a strong social media presence.
Attracting donors
Some charitable NFT projects provide special benefits to holders known as utility, which can include private Discord channels, live events, and virtual meetups for community members.
Holders of NFTs may find satisfaction in knowing they are making a difference. Community gatherings, whether virtual or in person, can also be an effective way to bring supporters together around a common cause.
Owning a sought-after piece of art can also be a motivator for seasoned collectors, especially if a project incorporates rarity characteristics into the collection.
Legal considerations
Launching an NFT project involves numerous legal considerations, especially when fundraising is involved. To begin, payment structures must be carefully navigated. Endaoment, a tax-exempt nonprofit that facilitates crypto donations to charitable organizations, has helped artists set up appropriate structures.
Artists interested in forming a decentralized autonomous organization (DAO) should consider applying for legal nonprofit status as a supplement to the DAO structure. This allows a community to accept both traditional and crypto donation methods.
Currently, donating proceeds from NFT sales does not raise any regulatory concerns. However, if your project uses NFT ownership as a type of membership, you should avoid promising positive asset value appreciation.
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