NFTs have ushered in a new era of financial opportunity, bringing with it a unique and lucrative approach to fundraising. Little Phil is at the forefront of this revolution; in a world-first, it recently partnered with digital trading platform Xillion to deliver a tokenized art piece valued at AUD$2.8 million to market, ultimately raising a massive AUD$350,000 for the charitable causes on its platform.
As proven by Little Phil, NFTs can serve as a significant opportunity for the not-for-profit sector within Australia and abroad. Just check out this previous article: How Non-Fungible Tokens (NFTs) Are Set To Transform The Non-Profit (NFP) Industry.
NFTs are tokens that we can use to represent ownership of unique items. They let us tokenise anything from art, collectibles, and even real estate. They can only have one official owner at a time and they're secured by blockchain technology – meaning no one can modify the record of ownership or copy/paste a new NFT into existence.
In case you’re still wondering what the heck Non-fungible means, its origin stems from an economic term that you could use to describe things like your furniture, a song file, or your computer. Non fungible items are things that are not interchangeable for other items because they have unique properties.
Fungible items, on the other hand, can be exchanged because their value is what defines them rather than their unique properties. For example, ETH or dollars are fungible because 1 ETH / $1 USD is exchangeable for another 1 ETH / $1 USD.
For a deeper understanding of the power of NFTs we recommend reading this article from Investopedia.
A blockchain is essentially an immutable ledger containing all of the transaction records that have ever taken place within a network. Commonly known blockchain networks are those like Ethereum or Bitcoin.
These blockchain networks are supported by node-operators (people with computers plugged into the network) who verify and validate each transaction. This concerted effort from node-operators across the world to validate the transactions on the blockchain is what makes the technology decentralised and secure, because it has no central point of failure.
Now to the juicy part! As a complete giving ecosystem that links donors, brands, and businesses more directly with the charities and beneficiaries they seek to support, Little Phil is constantly looking for ways to bring value and new fundraising opportunities to its charity partners.
Which is why we’ve compiled these 4 ideas for nonprofits looking to get started in the NFT space:
There are many NFT artists out there with their own communities that are open to collaborating with charities to assist them in raising funds. Charities can approach them to see if they can produce an item that can be leveraged on behalf of the specific fundraising initiative.
NFT creators can easily donate auction proceeds to charity through platforms of their choice by setting payouts to your organisation's cryptocurrency wallet.
You can find them by searching on sites like Rarable or OpenSea, more often than not, these artists will have links to their social profiles where you can reach out and connect with them.
Perhaps you have an incredible advocate for your organisation who has a large following. You might be able to get them to create some artwork (whether it's digital art, film, or music) and then sell it on a marketplace like Rarable, OpenSea, or Foundation.
The process of minting these pieces will vary slightly from platform to platform but will generally require a cryptocurrency wallet in order to be set up completely.
Once the piece is up and for sale, you'll receive all of the proceeds from its purchase. Little Phil’s collaboration with DJ Soda and Xillion is an example of this type of initiative. It was also the first time that a social enterprise partnered with an artist and NFT launchpad to raise funds for more than one specific charitable initiative.
If you own a business or have access to any type of creative property, it can be turned into an NFT using the aforementioned method. This includes things like images, designs, or video content that can be digitally transformed into an NFT via the blockchain. Once the item is minted, it can be listed on Rarable or OpenSea, where people can purchase it by sending cryptocurrency.
There are many opportunities for charities to use their unique content in new ways like this, and it will help them raise funds more efficiently.
Some of the most popular items to be bought and sold on marketplaces like Rarable or OpenSea are custom-designed NFTs. This is a perfect opportunity for charities to generate funds. Many artists make these tokens. If your charity can win them over—they might be willing to create some NFTs for you or sell them via your platform.
NFTs are an exciting new prospect within the world of cryptocurrency and blockchain, offering significant benefits to users that other fiat currencies cannot.
The unique properties associated with these systems make this sector a promising opportunity for organisations of all levels, providing charities with powerful tools for reaching donors in unprecedented ways.
If you’re a charity that would like to leverage the exciting new possibilities for generating funds via NFTs and the blockchain get in touch with Little Phil.