MAC Cosmetics Sells NFTs To Support HIV/AIDS Organisations
How did a relatively unknown idea suddenly become a game-changer in the fundraising industry? Whether you think NFTs are a passing trend or the future wave, they have helped raise millions of dollars for good causes. So, what exactly is this craze, how can it help foundations, and most importantly, what value does this initiative provide to collectors?
What are NFTs?
NFTs are an emerging form of digital art that enables people to own and trade unique digital assets through a decentralized marketplace. These one-of-a-kind virtual assets are created using blockchain technology.
The idea behind NFTs is simple: creators design unique digital assets tied to specific physical objects or items, such as artworks or branded clothing. These digital assets are then stored on the blockchain so they cannot be tampered with or duplicated — making them impossible to replicate!
So, how have they become an increasingly popular way to raise money for charity and promote causes?
NFTs for Fundraising
Nonprofit organizations rely on donations and sponsorships to fund their programs and make the world a better place. But if people don't know about them, how can they donate money to the cause? The solution? Create new kinds of funding sources like NFTs.
In the 1980s, Keith Haring exploded into the art scene with his vibrant, cartoonish street artworks. Following his HIV diagnosis, he used his art to promote awareness of the virus and help those affected. Since its introduction in 1994, MAC's Viva Glam brand has collaborated with the Keith Haring Foundation to generate substantial funds to support those affected by the virus.
All direct sales from the collection will support the MAC Viva Glam Fund, which helps groups advocating for equal rights, and 2.5% of secondary purchases on OpenSea will go to the Keith Haring Foundation.
Through NFTs, a larger audience can be reached, including those with no interest in purchasing the cosmetics but would still want to participate in the charitable endeavor and own an NFT. To attract customers who may not have bought NFTs previously, the brand collaborated with blockchain technology provider Consensys to make the NFTs available for purchase via credit or debit cards in addition to crypto wallets.
How MAC Cosmetic Is Using NFTs To Raise Funds For HIV/AIDS Organizations
Although NFTs have become very popular at this point, there is still a wide range of applications for them. Brands may use these one-of-a-kind tokens for various reasons, such as expanding their market reach or rewarding loyal consumers, while others use them to raise money for charity. This is the case with MAC Cosmetics, which has carried its Viva Glam promotion into the digital world for the first time.
These NFT collectibles built on Polygon take the shape of animated images of lipsticks incorporating some of Keith Haring's most renowned artworks and are distributed as part of the company's ongoing Viva Glam campaign, which has advocated for equal rights since 1994.
Supporting the mission of National Youth HIV/AIDS Awareness Day, the NFT limited-edition collection was released on April 10 in collaboration with blockchain technology startup ConsenSys. Haring's most recognizable works are featured on three different animated MAC Viva Glam lipsticks. Each NFT may be purchased in one of three rarity and cost tiers.
TIER 01 - Keith Haring Red-Rare
Rare is a digital sequence of images of red lipstick with Haring's artwork. There are 5000 minted Rare NFTs, and each costs $25.
TIER 02 - Keith Haring Blue - Exclusive
Exclusive showcases Haring's artwork together with an animated depiction of blue lipstick. The NFT also has a digital face chart guide from a MAC Senior Artist on how to recreate a Keith Haring–inspired look. There are just 250 available, and they each cost $150.
TIER 03 - Keith Haring Yellow - Icon
Icon is a moving picture of a yellow lipstick customized with Haring's artwork. As an added perk, collectors can schedule a free 30-minute beauty consultation with a MAC Artist and get a free tube of Viva Glam lipstick. With a price tag of $1,000 a pop and a release date extending to September 9, 2022, this limited edition collectible is well worth the wait.
The Bottom Line
NFT fundraising is merely one aspect of the bigger discussion around NFT real-world utilities. NFTs are moving from a novel concept to a transactional standard. Nonprofits may get a head start on this digital currency revolution by learning how NFTs can assist them in reaching new audiences and driving their long-term aims.
By allowing collectors to assist people in need without purchasing an actual lipstick, MAC Cosmetics used NFTs to raise donations for the foundation, create a lot of publicity for the brand, and connect with their fans even more by offering perks with the collectibles. This could be a game changer for the brand for decades to come