Fidelity Charitable Enters Non-Fungible Token Space With NFT Raffle

Fidelity Charitable is looking to enter the non-fungible token (NFT) space despite the winter in the crypto market. The country’s largest grantmaker has sponsored a raffle that allows participants to claim one of the NFTs

According to the announcement, participants are allowed to claim NFTs. 50 of them will also win $1,000 to donate via a donor-advised fund at Fidelity.

Fidelity Charitable To Promote A New Generation Of Givers

Head of donor engagement for Fidelity Charitable, Amy Pirozzolo, commented on the development. He stated that one of the goals is to promote an entirely new generation of philanthropists and givers out there. “We want to be where they are and the channels they use …and further encourage their generosity,” he added. According to Fidelity, about 50,000 different wallets have already registered to participate and potentially win prizes to donate.

Although blockchain technology underlies cryptocurrency trading, it also records the ownership of digital items such as Tweets, videos, and images. Last year, there was a massive increase in crypto contributions to donor-advised funds at Fidelity. The fund grew from $28 million in 2020 to an impressive $331 million in 2021.

Charitable Organizations Show More Interest In Crypto Donations

President of Fidelity Charitable, Jacob Pruitt, while speaking on the NFT project, stated that it is a distinctive method of engaging with next-gen investors. It’s an innovative approach that Fidelity has taken and hopes to sustain such development as it transits into a new space.

A donor-advised fund enables donors to claim a tax credit for charitable organizations. However, it doesn’t require them to give the funds away within any particular timeframe. Organizations like Fidelity Charitable have the capacity for other more complex donations, including generating receipts for donors for taxes and exchanging assets for cash.

Many charitable organizations have opened the doors for donations in cryptocurrencies because their value has appreciated significantly, although the market is presently declining.

The market witnessed a massive leap last year when many crypto assets were hitting their all-time high levels in price. In November 2021, the world’s largest crypto asset by market capitalization, Bitcoin, reached $68,000 ATH. However, the collapse of Terra stablecoin and several other incidences have contributed to a long winter in the market.  This has not stopped charitable organizations from opening their doors to cryptocurrency donations or other activities related to crypto.