Virtual auctions of items channel donations to civil society organizations.

Technologies like NFTs and bitcoins help raise funds in innovative ways

With the evolution of technology, civil society organizations are gaining new ways to raise funds in different and innovative ways. One example is the idea of ​​creating a digital dress, which does not physically exist, for the Brazilian top model Valentina Sampaio to wear and then auction it off as a way to raise funds during a campaign to combat violence against the LGBTQIA+ community.

The outfit made for Valentina — a fashion star and the first transgender woman to grace the cover of Vogue Paris — is merely a virtual piece. An artist projected an image of a white dress onto the Brazilian woman's body, with a reddish liquid, like blood, dripping down the fabric. This artwork was sold in NFT (non-fungible token) format, a certificate of ownership for a digital product, guaranteeing its originality and exclusivity.

The Brazilian woman's 'dress' was auctioned for US$300,000 in September of this year. At the time, this represented the highest price ever paid for an NFT related to fashion, and the proceeds were donated to organizations linked to the LGBTQIA+ cause.

Creativity and historical significance can make all the difference for the success of such initiatives because, through NFT, it is possible to purchase a digital certificate for anything.

Another example is the first tweet by one of Twitter's founders, Jack Dorsey, which was sold in this way. The amount reached was over US$2.9 million. Dorsey's share of the profit from this sale was converted into the digital currency bitcoin and donated to the organization GiveDirectly, which sends money to poor families in Africa and the United States.

Furthermore, it's important to always remember that cryptocurrency donations carry the risk of the donated value depreciating or appreciating, depending on daily fluctuations. However, many large international organizations see these transfers as a simplified way to receive funds from different countries.

The American Red Cross began accepting donations in bitcoins in 2014, and UNICEF launched CryptoFund in 2019, which allows for receiving, holding, and spending cryptocurrencies. The United Nations Children's Fund highlights that, through this initiative, it is possible to benefit from the transparency of blockchain transactions (the system that allows for the recording and tracking of information) and the low cost of sending funds.

Many things that were unimaginable not long ago, such as in the cases of Valentina and Dorsey, now facilitate philanthropy in different ways, with organizations finding new means to generate engagement, important causes resonating much further, and encouragement for partnerships between different classes and sectors of society.

The culture of giving has a strong impetus to gain from the combination of technological tools at hand, different ideas in mind, and a desire in the heart to make the world a better place.

Carola Matarazzo – Executive Director of the Bem Maior Movement

This article was originally published on the Third Sector Observatory website.

Image Credit: Press Release/MBM