Charities are often faced with problems related to regulatory paperwork, unnecessary expenses, transparency, and trust issues regarding donors’ concerns on how charities use their contributions.
Blockchain has the capacity to help charity organizations by improving overall performance in key areas by creating effective administration structures, increasing donor’s trust, establishing a verifiable giving chain, and facilitating cross-border donations. Blockchain’s ability to decentralize transactions can transform accountability, decision-making, auditing, and is suitable for international transactions.
Benefits of Blockchain for Charity:
Crypto-philanthropy promises some notable advantages for charitable organizations concerning transparency, decentralization, and tax or cost abatements. The higher level of transparency and public accountability provided by blockchain technology can ease donors’ minds and encourage them to give while also reinforcing the charity’s reputation for integrity. Furthermore, the automated nature of blockchain technology has the potential to simplify the way charities are managed, automating parts of the process and reducing the overall costs by requiring fewer intermediaries.
Blockchain Use Cases in Charity:
|Traceability and transparency – One of blockchain’s most attractive features is that it enables highly visible and traceable transactions. This allows tracking exactly how a charity uses a donor’s contributions to encourage efficiency and accountability.|
|Immediate financial support – Blockchain provides immediate financial support directly to victims faster than banks, governments, or aid agencies.|
|Stable coin –By creating a stable coin the volatility of donations is eliminated.|
|Reduce fees for transferring money – Knowing that most of the funds go directly to organizations, creates an incentive effect for donors.|