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Donation of NFTs

  • 1.  Donation of NFTs

    Posted 20 days ago
    Hi everyone, has anyone dealt with donations of NFTs?  I am approaching the situation with caution, but I am curious if anyone has been down this path.  As I read, I understand the best course (besides the donor just selling and giving cash) is for the donor to put the NFT up for auction and list our Foundation (and crypto wallet) as the beneficiary of the auction proceeds. 


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    Jeff Baynham
    Associate Vice Chancellor, Advancement Services
    NC State University
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  • 2.  RE: Donation of NFTs

    Posted 20 days ago
    I had one client where a donor approached them with a non-fungible proposal.

    Considering you need to own some cryptocurrency and a wallet and set up an auction etc., etc., etc., the Gift Acceptance Committee at that institution declined the gift.  Instead, they suggested to the donor that they sell the NFT and transfer the proceeds to them.

    In the end, they discovered that the donor did not know much about what they were proposing and never did anything :-).

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Donation of NFTs

    Posted 20 days ago
    We haven't been in the situation (yet), but if/when we are, I will strongly encourage the donor to sell the NFT and give us the cash. I don't want to be in any sort of possession of something of dubious liquidity. If you do have to go the auction route, what is the plan? Would NC State host the auction somehow or would it be independent? Again, I'd push for the latter.

    -jsg

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    Josh Greenbaum
    Executive Director, Advancement Information Svcs
    Emory University
    josh.greenbaum@emory.edu
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  • 4.  RE: Donation of NFTs

    Posted 20 days ago
    Thanks, John and Josh.  I would not get involved in the auction. As I continue to research, It seems third-party orgs can do the auctions and have your 501(c)3 as the beneficiary of the proceeds.  That seems to be the best approach (after of course the owner just selling the NFT and giving us cash.) Though, the auction approach still requires us to have a digital wallet to accept crypto as the proceeds would likely come in the form of Crypto.

    ------------------------------
    Jeff Baynham
    Associate Vice Chancellor, Advancement Services
    NC State University
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  • 5.  RE: Donation of NFTs

    Posted 19 days ago
    Jeff, while you'd still need a wallet, there are processors who will immediately liquidate the crypto you receive from the auction, so you won't be exposed to any volatility risk either - they guarantee settlement at the value you received the crypto at, regardless of their actual return in the sale.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 6.  RE: Donation of NFTs

    Posted 19 days ago

    Jeff –

     

    At GT, we are working with BitPay.com.  We have set up a donation page through their platform.  They immediately convert the crypto and forward to us the cash equivalent (minus a transaction fee).

     

    Our Foundation has made the decision to treat the transaction fee as a business expense so we are giving the donor full credit for the entirety of the crypto gift.

     

    Mark