‘Tis the season to be giving! 4 Ways Web3 is transforming the Fundraising sector

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With thanksgiving just over and Christmas right around the corner, many people will be thinking of their favorite charities and how they can offer support during the holiday season. Fundraising is particularly important to charities at this time of year when most are willing to part with a little to help the causes that matter to them most. 

However, according to the Fundraising regulator Annual Complaints Report 2021, the complaints about misleading information increased by 17%. There are also concerns about fundraiser behavior citing pressure to donate. What people really require is a safe way to transfer surplus income to causes that they want to support.

While the disparity between those who earn a lot and those who earn a little continues to grow wider, the act of giving is a common ground for all who care about others in society. 

Giving a little to make a great impact

Crowdfunding is something that the public have become familiar with in recent years. Go Fund Me, Just Giving and Patreon offer ways for the public to offer support for the projects they feel passionate about. Gitcoin grants have taken this model into Web3. It is one of the best examples of fundraising in the Web3 sector today. It successfully allows anybody to support a mission, team or project that they believe in. 

The beauty of their quadratic funding model is that you don’t have to give a lot to make a big difference. With over $20mm funded, Gitcoin is currently the largest experiment of Quadratic Funding used to fund digital public goods. The idea is simple, all contributions to a project made during the defined time period count towards the matching rewards. 

This is truly where blockchain technology shines. Although the model focuses mostly on development of Web3 related communities, products and services it is certainly setting a precedent for future funding opportunities in other industries. 

Partnerships in the Metaverse

Charities have opportunities to use virtual worlds to engage new audiences, stimulate conversations around their biggest campaigns and help the wider public to understand their vision. Innovative charities are beginning to learn about the opportunities in the metaverse. 

Susan G.Komen, the world’s leading Breast Cancer Charity recently teamed up with Upland Metaverse for Breast Cancer Awareness month. Using digital assets to help fight breast cancer. Upland players can purchase unique assets and also display the iconic pink ribbon on their player profile when they support the cause. This innovative approach to fundraising allows Susan G.Komen to reimagine their reach worldwide. 

Engaging with the digital first donors 

How can we support the initiatives we care about and have those initiatives guarantee that the funding is going to those who need it the most? The younger generation are hyper aware of their digital footprint and also far removed from the traditional fundraising mechanisms of today. The transparency offered via blockchain technology offers a new, transparent way to track donations, ensuring that all support giving to a charity is ending up in the right place. 

Charitablez, a recent winner of the re-imagine fundraising award, is planning to use individual crypto tokens to allow existing charities to tap into Web3 communities and offer new ways for the younger generation to engage with a charity’s mission. Oxfam are their first case study and it will be interesting to see how token contributions differ to existing 

Using crypto as an alternative way to support good causes is one way to disassociate giving from parting with hard earned cash. This new approach to non-profit funding management adds potential new revenue streams for charities. 

Cash is no longer king

How often do you pass a charity bucket on the street and wish you had cash to throw in? It happens on a regular basis. Yet, nonprofits still struggle to find a solution to this predicament. If they hold out card machines it appears as though they have money to invest in technology. This creates a perception of wealth that causes people to question the need for support. However, mobile technology has quickly become a staple in all major cities across the world, with over 4.6 billion mobile internet users worldwide.

Many nonprofits recognize the value of mobile technology for meeting their fundraising objectives. However, the implementation can prove cumbersome when archaic systems are firmly embedded into the charity’s organizational culture. The Giving Block provides an easy way for nonprofits to accept crypto donations and individuals who hold cryptocurrencies to donate to some of their favorite causes. 

As more nonprofits focus on addressing fundraising challenges in a digital era, new Web3 opportunities will allow them to tap into new audiences, create brand awareness and offer alternative methods of support for the younger generation that are skeptical of traditional means of fundraising. 

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