Developing a Web3 Strategy for Your Nonprofit
In the fast-paced world of technology, Web3 presents a unique set of opportunities and challenges for nonprofit’s looking to scale their impact. This new digital frontier offers innovative ways for impact organizations to grow their community, introduce novel revenue sources through crypto philanthropy, verifiably track their impact, and leverage blockchain technology to enhance service delivery.
The advent of Web3 has the potential to be transformative for nonprofits, yet most aren’t actively engaging in the space. There are many reasons why this may be the case, including a lack of education and understanding related to blockchain technology, negative perceptions of the space fueled by bad actors, and a feeling of overwhelm, or in other words, just not knowing where to start.
So, in this article, we walk you through the steps you can take to begin your Web3 journey, and some of the considerations that should be included in any nonprofit’s Web3 strategy.
Developing Your Strategy
While Web3 advancements are moving at light speed, it doesn’t mean that your nonprofit has to. There is no doubting the risks associated with Web3 including the secure custody of digital assets, scams, and bad actors. That being said, it’s important to take things slow, weigh the benefits and risks of the various Web3 use cases, and start small. This includes growing your network and educating you and your team on Web3, laying the foundation with strong policies and procedures related to Web3 engagement, and starting small with manageable initiatives. So, let’s break down each of these areas a bit further.
1. Growing Your Network
Social Media Engagement
A great starting point for any nonprofit is to begin engaging in the spaces where Web3 conversations live – social media platforms like Twitter/X, Telegram, Farcaster, and Discord. A great method for finding organizations or individuals to follow on Twitter is to head to the page of a trusted Web3 organization you already know of, such as a crypto philanthropy platform or social impact DAO (or maybe even Crypto Altruism 😉), click on their “following” list, and see all the accounts they are following.
Another great place to begin learning and growing your network is on Twitter Spaces. Every day there are spaces hosted by reputable Web3 impact leaders where community members come together, learn about new initiatives, share best practices, and ask questions. Even if you just want to sit in as a listener, these are a great place to learn about Web3 and grow your network.
Once you’ve identified Web3 projects or organizations you’d like to engage with, it can also be valuable to join their Telegram of Discord group. In doing so, you’ll be able to directly connect with members of their community, including Founders, contributors, and users. Discord and Telegram are great spaces for asking questions, exploring partnership opportunities, and raising awareness of your organization.
Joining an Impact DAO or Other Web3 Project
Decentralized Autonomous Organizations (DAOs) are community-led entities with no central authority, which operate on collective decision-making processes. There are countless Impact DAOs and Web3 projects focusing on diverse charitable causes, so it is likely there is a project whose focus is aligned with your organization’s. Joining an Impact DAO or contributing to a Web3 project can be a great way to grow your network, learn about the ecosystem, explore partnership opportunities, and begin building your presence in the space.
Education is Key
Education is vital to a successful Web3 strategy, and thankfully, there are many incredible educational offerings in the space. This includes everything from free educational content, to formal courses and educational cohorts. Some of the best educational programs and providers out there include Kernel, SheFi, Bankless, and Web3ForGood. Not to toot our own horn, but we also offer some pretty solid educational content which can be found in our blog.
Attending a Web3 Conference
Attending a Web3 conference can be a great way grow your network and learn about important topics and issues in the space. This doesn’t mean you have to fly to the other side of the world. In fact, there are local conferences and meet-ups all over the world, so there is certain to be something close to you. By attending a more local conference, you can also forge partnerships with Web3 projects and enthusiasts in your area.
Having a great time hanging with the @gitcoin community at the Ecosystem Growth Summit! 🙌
— Crypto Altruism (@Crypto_Altruism) March 1, 2024
Excited for an afternoon of dialogue on the power of Web3 to advance public goods! pic.twitter.com/cgQA5Q9PNP
2. Laying the Foundation
Developing Cryptocurrency Policies
It is crucial to establish clear policies related to your engagement in Web3. This includes setting up secure procedures for handling cryptocurrency donations, how your organization manages the custody of its crypto assets, compliance with legal standards, etc. It can be helpful to engage a legal consultant to support you in this process. We discuss some of the policies you should create in our article on Web3 Safety for Nonprofits, but it is important to create policies unique to the needs of your organization.
Creating Board and Staff Buy-in
To effectively execute on a Web3 strategy, it will be essential to have buy-in from your Board of Directors and Staff team. After all, it will impact many roles within your organization whether it be fundraising, marketing, or legal. Educational sessions for your team can help bridge the knowledge gap and create buy-in, and thankfully, there is no shortage of free educational content. Whether it’s webinars on crypto fundraising, podcast episodes like those found in our series The Web3 Nonprofit, articles, or workbooks, there is no shortage of great educational content. With a bit of digging, you can pretty quickly put together a solid training program for our team based on content that already exists.
When working to create buy-in, it’s important to approach the conversation by leading with the benefits and not the technology. Focusing on the value of decentralization, transparency, revenue diversification, and the community in Web3 is far more valuable than diving into the nitty gritty of the technology.
Educating Donors
While it is not your job to educate every donor on the value of Web3 and crypto philanthropy, it can still be helpful to communicate with your donors about why and how your organization is adopting blockchain and crypto donations. There are unfortunately still stigmas about cryptocurrency due to a history of bad actors and scams, so openly sharing your reasoning and approach can enhance donor confidence and support in your decision.
Identifying Partnerships
As you begin to test the waters of Web3, it’s important to not go it alone. It can be helpful to start forming partnerships with like minded Web3 projects and other nonprofits in the space so you can share best practices, learn from each others’ experiences, and collaborate on initiatives. A great first step is to connect with a crypto philanthropy platform like Endaoment, Giveth, Givepact, The Giving Block, or one of many others. These platforms can simplify the onboarding process by helping you get set up with a wallet, and providing valuable education and resources related to managing crypto donations.
3. Starting Small
Accepting Crypto Donations
A great way to test the waters of Web3 is by accepting crypto donations. As highlighted above, there are many crypto philanthropy platforms that do a great job of helping nonprofits get set up. This is a fairly low risk activity that requires minimal effort to get set up. However, it will require a lot of work getting your name out there and connecting with donors. Once you get set up, it also gives you the opportunity to learn about what other nonprofits are doing in the space, as many of the crypto philanthropy platforms host regular networking meetings, events, and educational sessions, and will be happy to connect you with potential partners.
Growing From Crypto Philanthropy to Other Use Cases
The most exciting thing about crypto philanthropy is that it is truly only the beginning when it comes to potential use cases for nonprofits. As your comfort with Web3 grows, along with your network, it can be helpful to start exploring other potential use cases whether it be monitoring your impact with blockchain, starting a DAO for your community, distributing grant funding, or anything in between. We dive into this more in our infographic on Web3 Nonprofit Use Cases.
When exploring new use cases, it’s important to work with trusted partners who have been thoroughly vetted and have a strong reputation in the space. There are also many Web3 projects that already have ready-to-go tools for a number of use cases for your nonprofit. The nonprofits who truly succeed in Web3 are those that use crypto philanthropy as an entry point to this exciting ecosystem.
Assessing Your Efforts
As you begin experimenting with new use cases and growing your crypto fundraising network, it is important to take the time to regularly evaluate the impact of your Web3 strategy. This could involve collecting feedback from crypto donors, community members, and partnering projects, and tracking metrics related to donations, partnerships, and community engagement to ensure consistent growth and continuous improvement.
Conclusion
Diving into the world of Web3 offers nonprofits not only a chance to innovate, but also a pathway to connect with a broader, more diverse community of supporters. While it may seem daunting, especially considering the unique risks in Web3, the key is to start small and scale gradually. By laying a solid foundation with education and policy development, starting with small and manageable initiatives like accepting crypto donations, and gradually exploring more complex applications, your nonprofit can effectively harness the potential of Web3 to advance its mission. The important thing is to just start, no matter how small your start, so you can stay ahead of the curve in this fast-moving space.
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