According to Welfare, he edited investigative reports for Buone Notizie del Corriere della Sera in which he analyzes the social changes taking place in Italy and their consequences for the social welfare system. In our November 15, 2022 issue, we tackle a specific topic: the link between NFTs, art, and philanthropy. In the following article, Paulo Riva explores how some third-sector organizations have begun to use these tools, but how they are less simple than they seem. However, in the commentary, Julia Grippy describes the environmental impact of non-farm task forces and the need to identify more efficient ways to make this type of fundraising truly sustainable.
there New frontiers for digital fundraising For third sector entities? It can be attached to three letters: denied. In the past year it has grown disproportionately, reaching a turnover of approx $40 billion. The enormous enthusiasm that according to the director of th“Blockchain Observatory at Milan Polytechnic Valeria Portal“,”It has also prompted many nonprofits to look at the technology“.
What are NFTs?
The abbreviation Nft stands for Non-fungible tokensA certificate that uniquely identifies a digital product of any kind, from an actual work of art to a video, photo, cover, or mural. These certificates are purchased on digital marketplaces thanks to Digital currencies and associated with blockchaina Shared digital record Data transactions are tracked so that they cannot be altered.
NFT and digital fundraising
it’s a A potentially secure, transparent and verifiable system which is spreading more and more. Of course, given the low average level of digital skills in Italy, buying or selling NFT is not an affordable process for anyone, but in the world last year Cryptocurrency holders Whoever did it was over 28 million. basin of potential donors Where many non-profit organizations, especially in the Anglo-Saxon world, have tried to fish.
Through Nft, in 2021 in the world, they have been Donated at least $12 million to charitable organizationsin the most diverse ways. The WWF He created a series of Nft related to some endangered animals, specifically called Non-fungal animals. Vodafone Foundation Auctioned NFT from The first text message in history For the Office of the United Nations High Commissioner for Human Rights, while he was the founder of Twitter Jack Dorsey He did the same with the first-ever tweet, by the NGO Give Directly. Nfts has also been used for Support Ukraine After the Russian invasion, thanks to fundraising initiatives promoted by artists and museums.
The situation in Italy
Even in Italy there are those who have already tried. there Francesca Rava Foundation Nft. has participated in two auctions.
“It was an opportunity to speak to an audience that was new to us, an audience of art enthusiasts who already use these tools.” The chief explains Maria Vittoria Ravafor any of them “New fundraising opportunities should always be seizedThis technology offers several.The Nfts They can be made in different waysGate resumes.
“Those no transferable – continues Blockchain Observatory director – It is suitable for the most loyal donors, because in this way they get personal and exclusive testimonials. The Nfts transferableon the other hand, can guarantee non-profit organizations Donations each time they are resoldwhich leads to the emergence of virtuous circles that can also reach out to people who would not normally donate.” Keeping donors close and finding new ones are two major goals of any fundraising office. But not only.
Thanks to projects with Nft there were cases related to And the establish in which they participated Celebrity endorsement or cooperated with it compActionAid has also done with Adidas and Foot Locker to ensure access to technology for young people with fewer opportunities. So it is not surprising that the third sector is considered Interest in the world of cryptocurrency Generally from Nft in particular. In the United States, some platforms have been created that support charitable organizations in these areas
Tender Block, which already tracks more than two hundred facts, is one of them. “To use NFTs as an effective fundraising tool – explains the contact manager Maria Terry – Non-profit organizations must first be able to accept cryptocurrency“. he is here Complications begin.
risk and criticality
In Italy, at the moment, in the vast majority of cases, third sector entities that have resorted to NFTs have received it Donations are in eurosleaning against specialized facts Who managed all the part related to digital transactions. This was also the case for the Francesca Rava Foundation. “External support was essential. You definitely must have“says the chief Maria Vittoria Rava. Without in-house experts either as consultants or as suppliers, third sector organizations can fail Legal, financial, knowledge and skills issues.
According to the Blockchain Observatory portal, “Technology is not good or bad in and of itself, it is a tool“, which – that It must be known “To understand what I can doIn his opinion, NFTs can be Useful tools if you use them with a clear purpose in the head, notBecause it’s fashionableAnd last year they were very much in fashion. Now, however, the NFT market and, more generally, the cryptocurrency market seem to be alive moment of difficulty. “After an exaggerated hype, we’re now in a moment of rationalization: Let’s move on – hypothesis portal – NFT projects will be more reasonable and more logical“.
This is what Maria Vitoria Rafa would like to do: “We want to continue in this direction, although we know that patience is required. Time, skills and relationships must be invested. If an institution is not regulated, NFTs risk being time consuming“.
This article was originally published in Buone Notizie on November 15, 2022 and is reproduced here with the author’s consent.