{"id":16312,"date":"2023-01-17T02:56:44","date_gmt":"2023-01-17T02:56:44","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/defi-daos-and-nfts-crypto-is-redefining-how-charities-raise-funds\/"},"modified":"2023-01-17T02:56:46","modified_gmt":"2023-01-17T02:56:46","slug":"defi-daos-and-nfts-crypto-is-redefining-how-charities-raise-funds","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/defi-daos-and-nfts-crypto-is-redefining-how-charities-raise-funds\/","title":{"rendered":"DeFi, DAOs and NFTs: Crypto is redefining how charities raise funds"},"content":{"rendered":"
\n

Non-fungible tokens (NFTs),\u00a0decentralized autonomous organizations (DAOs), and\u00a0decentralized finance (DeFi) are redefining how charities raise donations and distribute funds to those most in need.\u00a0<\/p>\n

Through ever-evolving crypto and blockchain-related technology, crypto philanthropists told Cointelegraph that they’ve witnessed \u201cnew wealth distribution mechanisms” never seen before.\u00a0<\/p>\n

\u201cPhilanthropy has traditionally been seen as a high-cost-of-entry, individualistic activity but with web3, collective decision-making bodies like DAOs can use tools that streamline financial coordination and encourage more participation,\u201d explained Omar Antila, Product Lead at Crypto for Charity.<\/p>\n

\u201cCrypto enables new innovative fundraising strategies, like charitable NFT-drop campaigns, or allowing people to pool their crypto funds in decentralized finance (DeFi) protocols that earn interest for a specific cause,\u201d he added.<\/p>\n

In October, a number of breast cancer-focused organizations started implementing NFTs to highlight Breast Cancer Awareness Month.\u00a0<\/p>\n

Antila noted that he has seen many other\u00a0philanthropic communities built around non-fungible tokens (NFTs), which have raised support for many other causes in need, such as testicular cancer, human trafficking, and the war in Ukraine.<\/p>\n

Last year, UkraineDAO, a\u00a0decentralized autonomous organization crowdfunded $6.1 million for a 1\/1 Ukrainian flag nonfungible token (NFT). Proceeds were aimed at nonprofit organizations in Ukraine helping those affected by the Russian invasion.<\/p>\n

Blockchain technology is primed to expand on what is currently possible in the non-profit sector. Source: <\/em>Moralis.io.<\/em><\/figcaption><\/figure>\n

Meanwhile, Anne Connelly, the co-author of \u201cBitcoin and the Future of Fundraising\u201d believes the crypto charity sector will soon expand from Bitcoin (BTC) and Ether (ETH) as the main cryptocurrencies for donations:<\/p>\n

\u201cOver time, however, we’ll see organizations accepting a much larger spread of tokens \u2014 similar to how they would accept gifts of securities. We’ll also see gifts of NFTs and other tokenized assets like real estate or collectibles.\u201d<\/p><\/blockquote>\n

\u201cI believe that once […] more organizations realize the philanthropic potential of this donor segment, every organization will have a crypto donation platform, the same way every organization accepts credit cards,\u201d she added.<\/p>\n

Antila said the wide-reaching nature of crypto means that the total addressable market for crypto charity is huge too. <\/p>\n

Antila believes the \u201c2 billion or so unbanked adults that exist in the world today\u201d will soon have the tools \u201cto participate in the global economy, transact, and create wealth without third parties getting in the way or taking a cut.\u201d<\/p>\n

Related: <\/em><\/strong>Charities risk losing a generation of donors if they don\u2019t accept crypto<\/em><\/strong><\/p>\n

More and more people and small businesses in underdeveloped countries are taking on Bitcoin and crypto for payments. Source: Cointelegraph.<\/em><\/figcaption><\/figure>\n

This could be especially true for countries suffering from lack of trust in their state\u2019s monetary system, where crypto adoption rates are also highest. <\/p>\n

Connelly said adoption rates are highest in undeveloped nations \u2014 most notably Nigeria, Argentina, Vietnam and South Africa \u2014 because they simply cannot trust their state\u2019s monetary system:<\/p>\n

\u201cOver half the world’s population lives under double, triple, or quadruple inflation rates. For most people, they can’t trust their governments to effectively manage the monetary system. <\/p><\/blockquote>\n

\u201cHaving the choice to use crypto is an important option for citizens, but also shows governments that if they want people to use their fiat currency, they will need to clean up their act,\u201d she added.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Non-fungible tokens (NFTs),\u00a0decentralized autonomous organizations (DAOs), and\u00a0decentralized finance (DeFi) are redefining how charities raise donations and distribute funds to those most in need.\u00a0 Through ever-evolving crypto and blockchain-related technology, crypto philanthropists told Cointelegraph that they’ve witnessed \u201cnew wealth distribution mechanisms” never seen before.\u00a0 \u201cPhilanthropy has traditionally been seen as a high-cost-of-entry, individualistic activity but with […]<\/p>\n","protected":false},"author":1,"featured_media":16313,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-16312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"yoast_head":"\nDeFi, DAOs and NFTs: Crypto is redefining how charities raise funds | NFT & 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