idea #09: non-profit ICO
Updated: Jan 31, 2019
what's the free market value of a donation?
I've been on a non-profit kick lately. This idea is just another slow hunch...would be hard to get setup, and no clue how to comply with reg's (or if you would need to) but...
How would you take the latest trend in startup/crypto land, the Initial Coin Offering (ICO), and adapt it to a non-profit?
ICOs are basically donations already, but by raising funding for a non-profit, you could technically deem any funding received through the initial crowd sale a valid donation for those investing. Big tax incentive to do so. But, the interesting twist, is the investors can hold their tokens or trade them across a crypto market. If the digital coin appreciates, great, you can make a profit OR choose to turn that into a larger donation!? The inverse is true for selling at a loss, but your full initial investment would qualify as a donation (I think) so there's limited downside for any philanthropist.
The non-profit itself, then can hold a set number of shares, and quarterly sell back into the market or issue new coin - proceeds then...drumroll please...get distributed out to partner charities, efficiently, and on a regular basis with minimal overhead.
There's a ton to think through, but it feels interesting and an innovative way to democratize charity, while adding security via blockchain (when done appropriately of course!).
If anyone is knowledgeable in either the non-profit or ICO arena, please leave some feedback!