Minting is the New Fundraising
NFTs aren't just about art and how Impact DAOs can use them for fundraising
Just as Impact DAOs present a new way of organizing on the internet, NFTs offer a novel method for fundraising.
Today, social impact organizations either depend on grants, like nonprofits, or generate their own income from "doing good," like social enterprises.
What we've observed over the years is that nonprofits' reliance on grants limits impact. Consequently, generating one's own income to fund an impact has proven more sustainable and effective than relying solely on aid.
NFTs provide this new way to generate income.
NFTs + Impact DAOs
NFT stands for Non-Fungible Token. This essentially means it's something that cannot be replaced with anything else. Anything in a digital format can be sold as an NFT, and even physical items can be digitally represented and sold as NFTs.
🐼Mint a panda image to save a real panda.
In the explosive NFT year of 2021, Giving Block processed over $12 million in NFT donations to traditional nonprofits. Endaoment, the smart contract philanthropy that gained prominence during the Ukraine crisis in March 2022, has processed about $15 million in NFT donations to date.
NFTs have proven to be an effective way of fundraising and have become a new income stream for many traditional nonprofits.
However, Impact DAOs, the web3 native impact organizations, have been slow to embrace NFTs for fundraising.
“NFTs are a new territory, and this way of using them is especially new, but I'm excited about its potential.” - Paul Graham, Founder Y Combinator
NFTs Go Beyond Art
NFTs aren't just about art, it can take any form. Your tweet, music, course, or even your time can be minted as an NFT.
A few NFT fundraising use cases by Impact DAOs:
Pact DAO minted their NYC mutual aid vision article as NFT.
Ekonavi minting and certifying regenerative agriculture via NFTs
Kift DAO selling nomad community memberships as NFTs
Dream DAO fundraising via minting NFTs for mentors
Kokonut DAO minting coconut trees as NFTs for agriculture 🇩🇴
A few other exciting use cases
We held our first discussion on how to leverage NFTs for Impact DAO fundraising on Twitter Spaces. It was a great conversation that is a must-listen. Check it out here.
Few NFT use cases from Twitter Spaces below 👇
Create Value, Mint Value: The New Fundraising for Impact
Securing real value via NFTs is the key. Value isn't always tied to the outcome; it's also crafted through the process of achieving that outcome - the establishment of trust and authenticity - that truly engages people.
Process > Thing
The journey leading to this trust-building and the demonstration of diligence are what captivate individuals to invest in your initiative.
Remember, to mint anything, you need an enthusiastic group of supporters - your tribe - who are ready to accompany you on this path, no matter what.
I recommend taking the Impact DAO Beginner's Course, which covers these important foundational concepts of building in public, storytelling, and finding your tribe.
“There needs to be real value that people are excited to put money in your hand.”
- Jeremy Nathaniel Akers, Chief Vibe Officer, Regens Unite
What's Holding Us Back?
Several factors: lack of knowledge about the tools, such as platforms and smart contracts; the need for NFT creators and Impact DAO creators to collaborate and generate combined value; the necessity for research to discern what's working, what's not, and to identify relevant use cases and successful examples.
To overcome these challenges and to harness the potential of NFTs for funding web3 impact, we've started a sub-channel within the Impact DAO Builders Club on Telegram.
If you have any questions or ideas, please don't hesitate to reach out on Substack or Twitter.
Very informative article with helpful examples!