Pitch In For Ukraine: How Charitable NFT Projects Work & The Role Of The Fiscal Sponsor

The authors were instructed by the project coordinator of the Pitch In For Ukraine1 programme and campaigns in relation to rights licensing agreements with Ukrainian Premier League clubs including leading teams such as Shakhtar Donetsk, FC Dnipro and Metalist. The world-first initiative used digital collectibles to raise funds for President Volodymyr Zelensky’s United24 project which distributes critical funds for urgent life-saving charitable donations to Ukraine.

Money can be given from across the world and every donation provides critical life-saving care and recovery assistance for Ukrainian families. Donors receive a “Pixel of the Pitch”2 NFT, representing virtual ownership of an individual 22cm square of part of a Ukrainian Premier League Stadium pitch (the exact size of a football), engraved with their name and edition number, as a unique piece of football history while providing urgent aid to Ukraine.

The project also meant assisting with the involvement of the overarching Charitable Foundation, the Kyiv School of Economics Foundation, as a ‘Fiscal Sponsor’. This entailed us making sure that parties achieve the charitable objectives of the Pitch In For Ukraine programme by facilitating the flow of proceeds from the sales of the Licensed Products on the transaction/currency platforms to the Shakhtar Foundation and other recipients of the proceeds.

This article explains how the NFT project was assembled from a legal perspective. Particular focus is given to the integration of the fiscal sponsor into the chain (a novelty for charitable NFT projects) and the consequent need to review and amend traditional rights and platform agreements. It examines:

• The Parties

• The Donation Process & Terms Of Service

• The Rights Licence

• Fundraising Ultimate Beneficiary Platform-United 24

• The Fiscal Sponsor - Kyiv School of Economics Charitable Foundation

• The Other Commercial Agreements

  • The NFT Minter & Platform Agreement

  • The Fiscal Sponsor Agreement

• The Current NFT Market In Sports

The article assumes the reader understands what a non-fungible token (NFT) is. For readers requiring an introduction to NFTs, please see this LawInSport article first: How To Launch An NFT – Key Tips For Sports Organisations.3

Donations can still be made through the Pitch In For Ukraine website.