It’s been a while! I’ve been meaning to write this article for a while now but the time doesn’t permit me writing this, but, here I am.
I have read a lot of articles about the emerging crypto-philanthropy schemes prior to writing this blog. As of this writing, Sparkpoint Ecosystem is in the middle of partnership talk with one of Non-Government Organization in the Philippines providing assistance to disaster victims as well as launching activity to help the marginalized communities. This kind of NGO provides programs to empower the people without the help of the government and with a very little to no donation at all – meaning some funds came from the very pocket of the founders and the officers of the organization.
I have seen many disasters that wrecked the livelihood of many people in my country alone; typhoons, landslides, earthquakes to name a few. Charity organizations of large corporate businesses like big media companies, business tycoons and politicians take advantage of this opportunity to collect funds to assist the victims of these disasters. However, many people are skeptical against these big charity organizations due to lack of transparency on how the funds are being allocated, if what percentage of the donations have been used during the whole relief operations and where does excess funds go.
These doubts are just a few reasons why people are thinking twice before donating to these such big charity organizations. In this article, I will be discussing the potentials and the use of Blockchain technology and cryptocurrency in philanthropy world.
- Transparency using the Blockchain Technology
As most of us know, Blockchain technology-based projects boast one of its undisputable characteristics to potential investors and users – transparency. Donations and fund allocations being done in the Blockchain is accessible to the public, may it be donors, potential donors or the beneficiaries of the funds. Once an organization set-up a donation wallet address, all transactions to and from that wallet address will be published and can be verified by the public. This will prevent corruption turning non-profit philanthropy organizations to high-profit earning companies in the long run, avoid misuse of donations and of course, stimulate public trust.
- More program funds, lesser overhead fees
Since existing charity institutions still depends on cash donations, they are using intermediaries like banks which charge high transaction fees depending on the amount of and currency used in the transaction. Aside from that, donors will also pay fees for transferring donations either by online banking, wire transfer, and interbank deposits. These causes a lesser fund to be received, and lesser funds to be released for each organization’s program and not to mention, people not donating since a large amount of their donations will just be spent to pay these overhead fees. But with Blockchain technology, transfers between donors-organization-programs-beneficiaries don’t need a bunch of intermediaries anymore since they can send the funds directly to each of their wallet addresses paying a very minimal fee. This could lead to higher philanthropic participation and an increase in the number of programs by the organization.
- Choose and donate
What would you feel if you donated a certain amount of money or asset to help the victims of a typhoon, and before you know it, your donation has been used in other purposes like buying and making shirts then being sold to earn profit in the name of charity and corporate social responsibility? Of course, you would feel betrayed. By using Blockchain technology and cryptocurrency, NGO’s will be able to set-up several wallet addresses to give the donors a number of choices where to send their donations like financial assistance for education, disaster response, feeding program, pro-environment program, and the operational funds of the organization itself. This will provide more transparency and higher public engagement of philanthropic activities.
These three benefits of Blockchain-based philanthropy projects are just a few of many and many more potential use of the most innovative financial technology in the world of giving and caring. And Blockchain being used for philanthropy is just one of the application of this technology and cryptocurrencies including Sparkpoint Token (SPRK). Sparkpoint Ecosystem is committed to continuously promote the use of Blockchain and cryptocurrency in different fields and markets to achieve mass approval of the future of our financial economy.
Several giant charitable organizations like American Red Cross and Save the Children have already adopted Blockchain-based donations in their organization. After several years of implementation, we may still say that a full adoption of cryptocurrency and Blockchain technology is still at its infant stage, but that is where all successful projects came from.
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