INFOGRAPHIC: Web3 Use Cases for Nonprofits
Fundraising
Web3 opens the door to new fundraising avenues for nonprofits, whether it be through crypto philanthropy, NFT fundraising campaigns, or partnerships with Web3 projects. By engaging in Web3 fundraising, it helps nonprofits connect with new donor demographics and grow their brand globally.
Monitoring, Reporting, and Verification (MRV)
By tracking impact on-chain with tools like impact certificates, on-chain attestations, tokenized impact, or other blockchain MRV tools, nonprofits can build trust with donors and share their impact with the community. Verifiable data also helps nonprofits better assess the impacts of initiatives, leading to improved decision making.
Impact Tokenization
Nonprofits can leverage impact tokenization to digitize and quantify their social outcomes, creating tradable assets in the process. This enables new funding avenues, enhances transparency, and aligns impact and rewards by creating new incentives for nonprofits and community groups to create positive impact.
Decentralized Governance
Web3 tools such as on-chain voting and decentralized autonomous organizations (DAOs) give nonprofits new ways to directly engage the community in decision making processes. This can help foster a more democratic, transparent, and inclusive environment, boosting stakeholder trust and participation, and leading to more effective and community-aligned initiatives.
Humanitarian Aid Delivery
By leveraging smart contracts, nonprofits can automate the delivery of financial aid to those in need around the world. By using cryptocurrency, funds can be transferred instantaneously, at a low cost, without the need for costly intermediaries. At the same time, all transactions are recorded on-chain, ensuring easy auditability.
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