Forbes: Charitable Gifts Of NFTs: Liquidation Process (April 20, 2022)

Forbes has published an article, “Charitable Gifts of NFTs: Liquidation Process”, which discusses how NFTs can be donated to charity. The article begins as follows:

As discussed previously, NFTs could be donated to charity. If you are a nonprofit and are deciding whether to start accepting NFTs, one issue that you must address is how to liquidate the NFT. Most nonprofits have gift acceptance procedures that require immediate liquidation, and any asset given to a nonprofit does not bring any real value to the charity unless it is liquidated. There are certain marketplaces that will buy and sell NFTs, like Opensea and Rareable, and other larger cryptocurrency exchanges have launched or are launching NFT marketplaces too (e.g., Coinbase, Kraken, etc.).
A charity considering accepting NFT donations should make sure it has an exit strategy in mind before moving forward. Being ready and willing to accept the NFT is one thing, but the asset needs to be liquidated to assist the charity with its mission. As such, it is not enough to simply know that NFT marketplaces exist. The prudent charity would also be set up on a marketplace which can provide liquidity for donated NFT assets..

Click here to see the full article: “Charitable Gifts of NFTs: Liquidation Process”

Posted by Mallory Wentz, Associate Editor, Wealth Strategies Journal.

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