‘Whether NFTs remain or not isn’t really important,’ says Michael Harr. The Managing Director of Pro Senectute beider Basel (PSBB) adds: ‘The technology is there. And we want to seriously engage with this issue.’ Two years ago, PSBB launched a fundraising campaign with non-fungible tokens, or NFTs for short. NFTs are digital works of art, images, videos and more. Every item is unique and cannot be changed because it is stored decentrally on the blockchain. PSBB has put more than 4,000 NFTs up for sale as part of its ‘Swiss Crypto Marvels’ campaign. Each item costs 66 Swiss francs. The NFTs are landscape photographs of Switzerland, supplemented by a futuristic object. Like Pro Senectute, they represent both consistency and change for Michael Harr. The aim of the campaign was: ‘We wanted to generate donations to buy land in the metaverse,’ he says. The metaverse is a digital space enhanced with virtual reality. The funds for purchasing land in the digital world were not to come from existing donation pots. PSBB was keen to avoid any criticism that money was being wasted on a digital gimmick. They were looking for a donation idea that wouldn’t eat into existing activities. With the Swiss Crypto Marvels, PSBB wanted to target new donors. ‘No one had done it before,’ says Michael Harr, explaining the motivation to try it out. The activity was designed as a digital project from start to finish: a digital donation channel for a project in the digital space.
Donations in cryptocurrency
Digital channels offer organisations looking for donations a wide range of new opportunities. And their importance is increasing. The 2023 Zewo donation report found that in 2022, for the first time, 10 per cent of donations went through direct digital channels, with 80 per cent of all digital donations made via TWINT. Cryptocurrencies are not mentioned.
‘Eighty per cent of all digital donations were made via TWINT.’
Zewo donation report 2023
Various organisations now offer the opportunity to donate Bitcoin, Ethereum and others. SOS Children’s Villages Switzerland is one of these. The foundation has made it possible to support them in this way since summer 2020. The new channel was accepted without any problems. Head of Communications Cornelia Krämer says: ‘The feedback – both negative and positive – was limited.’ The volume of cryptocurrencies donated varies from year to year. Individual donations also range from 50 Swiss francs to 1,500 francs. The maximum amount that can be donated is 4,000 francs per donation. The reason for using this channel was the desire to attract new donors. ‘As an innovative NGO, we were looking for new ways to enable donations and, for example, to offer a younger target group an easy way to donate,’ she says. The experience has been positive. It turned out that the handling of cryptocurrencies does not pose a particular challenge for SOS Children’s Villages. ‘Working with experienced partners such as Coinify and Datatrans makes it very easy for us. The processes are established and automated,’ she says. The cryptocurrencies are converted into Swiss francs by these partners and transferred to SOS Children’s Villages.
Smart use of digital fundraising
Michael Harr is also satisfied with the feedback. ‘The outward appeal was very positive,’ he says. But the campaign also set a lot in motion internally. It became clear that the internal discussions were extremely serious. Employees were much more involved than if the metaverse had only been discussed within a working group. Michael Harr and others saw this engagement with digital possibilities as a key reason to carry out the campaign, even if he is quite ambivalent about digitalisation. He describes it as both a blessing and a curse – especially for the target group of Pro Senectute. It can isolate people if the digital tools are too difficult for them to master. At the same time, digitalisation offers new communication opportunities; for example, WhatsApp makes it easier for older people with reduced mobility to keep in touch. In any case, it is important for Michael Harr to seriously engage with the issue. The fact that he rates the NFT campaign positively on the whole certainly also has to do with the fact that the objective was achieved. They haven’t yet been able to sell all 4,000 NFTs – some are still for sale – but they hadn’t really expected to. The proceeds have still been enough to buy land in the metaverse. It was clear to him that this goal would only be achievable with sufficient communication. PSBB used an influencer for this purpose. Marcus Händel from Visit Switzerland shared the campaign with his more than 800,000 followers on Instagram. Activities such as these demonstrate the potential of digitalisation for fundraising. They show that they depend on good communication when used cleverly. Digitalisation of fundraising is not limited to installing a donation button on your own website. Successful campaigns can pick up on the channel’s particular characteristics and play around with them cheekily, just like WWF Turkey’s #LastSelfie campaign did. The organisation used the social media platform Snapchat, whose special feature is that pictures are sent and then automatically deleted after a few seconds. Thus, this particular characteristic of the channel was skilfully combined with the message of endangered animal breeds – a final picture before they disappear.
‘Online and offline options need to be combined as best possible.’
Melanie Roth, Swissaid
A digital puzzle
Despite innovative approaches and the variety of opportunities, the findings of the NPO Survey 2022 conducted by the Zewo Foundation show that there is still potential in the digital sector. Aid organisations still attach little importance to digital tools when it comes to fundraising. But their significance is increasing. And one in two aid organisations is already using them, gaining some initial experience. ‘The challenge is to think consistently in a networked way from the outset and thus to optimally combine online and offline options,’ says Melanie Roth, who is responsible for online fundraising and online marketing at Swissaid. Although digital channels are, as yet, of minor importance to them when it comes to revenue, it’s growing. ‘In addition, digital channels are becoming increasingly important both in the traditional offline channels of public fundraising and in individual fundraising,’ she says. During the pandemic, Swissaid launched a digital puzzle platform to offer the community new opportunities to get involved. For example, it meant that school classes that had been selling Swissaid badges on the street for 80 years were able to collect donations even during the pandemic. ‘From the outset, we designed and developed the tool in such a way that it also works for private individuals or groups as a donation tool for their own campaigns.’ The platform can be used to launch a fundraising campaign for a Swissaid project. The closer you get to your donation goal, the more pieces of the puzzle are put together. The response was mixed. ‘At the beginning, we were able to win over a dozen schools,’ she says. However, getting a constant stream of school classes – and private individuals – to take part proved to be a challenge.
On the other hand, the tool was particularly worthwhile for Swissaid’s own activities: the organisation has always reached its own donation targets. ‘We are convinced that its potential has not yet been exhausted. Above all, with better and more targeted advertising, we could achieve an even greater response to the offer,’ she says.
‘They were looking for a donation idea that wouldn’t eat into their existing activities.’
Michael Harr, Pro Senectute beider Basel
Low-threshold access
Michael Harr also sees potential in communication. The PSBB seems to have taken care to ensure low-threshold access, with an explanatory video on a special landing page. Nevertheless, ‘We would like to communicate digitally even more than we do now,’ he says. Melanie Roth says: ‘Advertising is absolutely key, whether it’s for private individuals, schools or your own fundraising campaign. The campaign must be publicised, whether among friends, on social media or among donors.’ An accurate message is important. The aim of the fundraising campaign must be stated simply and clearly. That’s why Swissaid offers a handful of specific projects to choose from. Even though the involvement of the community is not yet very important, Melanie Roth is convinced that we will see participatory development. Particularly owing to the lack of opportunities to donate on social media channels. ‘In Switzerland, we’ve been waiting in vain for the donation function on the Meta platforms. If Meta switches these off again in the rest of Europe in the middle of the year, it’ll be even further off for us,’ she says. The fact that fundraising organisations allow their communities to launch their own campaigns on independent platforms could become increasingly important for this reason, too.
Give it a try
With the NFT campaign, PSBB has chosen its own donation channel. It is consistent that the fundraising campaign is coordinated with the fundraising goal and the entire project. After all, the land purchase did not spell the end of the project. Now the concept for the use of the piece of virtual land is on the agenda. ‘We founded the “metaverse experimentallabor” [metaverse experimental lab] pilot group for this purpose,’ says Michael Harr. The aim is for the target group to make the decisions. And so six older people were selected for the group. They were able to move around in the metaverse. The idea was they should see for themselves what it was all about. They then had to decide what to do with the land. The solution was developed in a playful approach in several workshops: in the digital metaverse, a travel service is being created for older people with limited mobility. Michael Harr is aware that this does not suit everyone; that there are older people who struggle with wearing virtual-reality headsets in order to dive into the metaverse. As he puts it: ‘Our services are never for everyone. But for some, they’re a good fit.’ He does not accept the fact that it does not work for some as an argument not to develop it for others. He’s already talking to foundations about financing it. He wants to roll out the project in several retirement homes by 2025. There will also be a scientific study going on in the background. After all, it may have started out as a visionary project, but the results have to be properly evaluated. ‘We’ll see whether the metaverse is a relevant opportunity for older people to experience activities,’ says Michael Harr. ‘You just have to try it out.’