Emerging technologies and social trends transforms almost every nature of work at various industries and create new challenges. Blockchain is one innovative technology that is being incorporated at various industries. This is a decentralized, peer-to-peer distributed ledger is well known for its security and transparency. Today, similar to other industries, Charity also has a lot of benefits of blockchain technology. At charity organizations, this technology brings transparency, accountability, trust and instantaneous sending of currencies around the word at a very low cost.
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Recently, many people have involved in donation activity and people look for trust and security in the process of donation. In order to attain contributions from various donors from different part of the world, charity puts the maximum effort to reach the maximum crowd. But still, charity organizations faces few challenges, as mentioned below
Many donors hesitate to donate or contribute money because there is no transparency in the process and the donors don’t know the usage of their contribution. Bringing trust and loyalty is the biggest challenge.
In the existing donation process, not all the donors contribute to the organizations directly. Middleman exist in the process and they charge some commission from the donation amount, which result in less donation.
Charity organizations would need to attract donations from different places to do more good deeds. But they could not reach every part of the world with the existing charitable process and there comes location barrier.
The chance of getting corruption, commission and much more additional costs is more in this field because there is no proof on how much the donor has contributed. The charity organizations will get lesser contributions.
Blockchain technology has fascinating features that could have a huge impact on charities and donors. It has the potential to revolutionize many areas of business and society, including philanthropy and the work of charities. The following are the features of implementing blockchain at charity organizations.
Many charitable organizations have started to accept cryptocurrencies as donations. This contribution eliminates the transaction of fiat currency and the investors can also send their cryptocurrency from any part of the world according to their convenient to cut down tax amount.
Blockchain could improve accountability and transparency as the transactions are recorded in the public ledger and everyone involved in the blockchain network will know the amount of contributions and for what purpose it is used. So this will attract more investors and donors.
As the record will be public, the organizations cannot be too aggressive when they are trying to get the donation. No-one can corrupt any part of donation and the contributions will be given for the good use only. Entry of fake details will be easily found, so it is impossible to do fraudulent
Since blockchain eliminates the involvement of intermediaries or middleman and cuts down corruption by bringing in transparency, the charity gains more cost and get chance to save life of thousands. This is benefit for both the organization and the donors as their contributions are used promptly.
The organizations cannot misuse the contributions made by the donors because everything will be recorded in the blockchain and everyone can view it at anytime. So the donors can get a peace that their money is being put to good use and also assure that the charity is not using the money for unnecessary stuffs.
With the advancement of technology and implementation of blockchain, it is possible for the donors to contribute from any corner of the world. This is because the donor can see the activity of charity through blockchain and does not necessarily need to check the organization to know its activity.