Blockchain can boost risk management for charitable giving
Nonprofits do amazing work worldwide, with great impact on the environment and humankind. However, we can do more by helping them become more effective and efficient through modern financial technology.
Distributed ledgers such as blockchain technology provides the ability to trace transactions on a public ledger in real time. So, given the right tools to leverage that transparency, charities and donors can see how funds are spent and ensure they reach their intended destination(s).
Blockchain technology offers a secure, fast, and less expensive way to transfer funds cross-border. Ultimately, this means relief aid and project implementation can be deployed faster and results can be reached sooner. In addition, with less fees and less funds being siphoned off along the way, more money goes towards driving impact.
Crypto has several benefits for donations. It allows for raising funds globally without high transaction fees, transfer fees, and fluctuations of local currency rates between countries.
It also allows those in need to receive money faster, reducing time spent held up in financial institutions, which can be up to 60 days in developing countries.
Additionally, crypto reduces corruption by enabling nonprofits to control and see how money is spent throughout its organization. Donors benefit from knowing that more of their donations will be used for those in need, and less on financial institution fees and administration costs. And donations can be released more quickly and transparently to those in need.
Until we, as a global society and human race, shift away from valuing money and power over all else, there will be corruption and the mistreatment of others. This results in an imbalance of power and resources, ultimately perpetuating poverty.
For now, the best ways for us to make a difference are to help lift others up out of poverty through philanthropic efforts that meet the most critical human and environmental needs of our world and society today, and provide education and empower people with the tools and skills they need to improve their health, lives and access to resources.