The Night of All Saints is approaching, so it is about time to remember our crypto heroes that often remain forgotten – charity projects. Charitable organizations annually receive millions of dollars in donations. They help children and victims of humanitarian disasters, protect nature, invest in science and culture. That being said, society still does not trust them.
According to nfpsynergy the level of trust in charitable organizations has gone down by six points in the past year. The main reasons are the opacity of budget distribution and the criticism they’ve been getting from media outlets.
Using the distributed registry technology to transfer and store data on donations or charitable payments is the best solution to increase trust in charity. In this case, blockchain represents a unique opportunity to store payees data.
The BitGive Foundation, created in 2013, revolutionized the donation process. It is the first registered non-profit organization to use bitcoins.
In 2016 BitGive announced the launch of GiveTrack beta, a multi-purpose blockchain-based donation platform. The service allows you to transfer, track, and keep records of all financial transactions around the world from start to finish.
GiveTrack users can monitor where and how the funds are being used. Connie Gallippi, the founder of the platform, believes that the connection between technology and charity is the connection between people and technology.
BitGive works with large organizations like Save the Children who accept payments in Bitcoins directly. But the biggest thing Galippi is proud of is the provision of safe water to the Women’s School in Shisango (Kenya).
He believes that charities will not stop receiving cash donations in traditional currency. But, in the end, blockchain technology will become the absolute norm as it protects against fraud, speeds up transactions, and it is cost-effective. Organizations using these technologies will come out ahead and become the support for the future of charity.
A British blockchain platform Alice.si is a social tool helping charities increase donations and clearly demonstrate their donors where the money went and what impact they have had at the same time.
NON-PROFIT ORGANIZATIONS NEED EASY WORKING METHODS TO GET THE DONATORS’ “TRUST”
As one of the open platforms for creating decentralized online services, Alice.si, freezes donations using Ethereum-based smart contracts until charitable organizations can demonstrate concrete results that are verified and confirmed by an independent third party. This means that a donation is guaranteed to reach the goal. If not, the money is returned to the donor.
According to Helperbit predictions, the problems of poverty, extreme natural events, and extreme climatic conditions could affect 325 million people by 2030.
This platform allows you to see the total number of donations received and check what they were spent on, so philanthropists can be sure that their money is used for its intended purpose.
Guido Baroncini Turricchia, the CEO and co-founder of Helperbit, says the company collaborates with major non-profits organizations, such as Swiss Re Foundation and Swiss Re Center for Global Dialogue. This allowed to create a multi-segment wallet, more than 5 bitcoins were donated to it.
Both bitcoin and blockchain technologies have been actively discussed and condemned in the media for several years. The founder of Helperbit is sure that successful charity cases will clearly demonstrate the following: technology is just a tool and, therefore, can be used for good.
TribeToken is an Ethereum-based decentralized digital charity platform created to fund charity projects using tokens. TribeToken allows anyone to contribute to a charity with minimum commission, guaranteed inflation and completely decentralization at any time from any place in the world. TribeToken uses Blockchain Ethereum to achieve almost instant transactions between charitable projects.
Electronic Frontier Foundation (EFF) is an American charitable organization that protects civil liberties in the digital world. Founded in 1990, EFF accepts bitcoins for donations since the spring of 2013. Cryptocurrency goes to policy research, Internet-related lawsuits and software development.
Code to Inspire (CTI) was established in Afghanistan in 2015. The Foundation organizes classrooms for Afghan women who are interested in getting an education in programming and online business. CTI opened their first school in Herat, Afghanistan and trained approximately 50 women daily. Since its inception, the organization has achieved significant results – hundreds of Afghan women have received technical education.
Common Collection is a Canadian organization that uses Bitcoin donations to help refugees and people in need. Many of the individuals listed on the Common Collection website have been affected by natural disasters.
Blockchain will not only solve issues with data storage and accelerated processing of financial transactions but give those in need a resource for collecting donations without the risk of losing or stealing funds.
This technology creates a new model for charity, where managing large sums of money requires complex accounting and a significant amount of research. It could be of great use to such organizations along with smart contracts and digital transactions.
With no need for intermediaries and all transactions being open, blockchain creates prerequisites for building trusting relationships, which is a key condition for charity development and collective funding of social initiatives.