Article by Forbes: Ilker Koksal
A series of scandals have rocked the way that the public perceives the typical charity, and trust in charitable organizations. It’s no coincidence that headline-grabbing scandals in the world of philanthropy coincided with the decline in faith toward these organizations.
Charities face declining donations among the young, increasing skepticism over CEO pay and concerns about where donations end up. At the same time, they struggle with inefficient, underfunded administration, often can’t direct aid adequately and frequently see the most vulnerable and needy miss-out.
Essentially, the term charity has been used and abused, and much of the public is no longer willing to take charities’ word as bond.
Blockchain technology could help resurrect the images of charities willing to adopt its services.
By minimizing administrative costs through automation, providing more accountability through traceable giving milestones, and allowing donors to see more clearly where their funds are going, blockchain may help restore some of the lost credibility to charities that prove worthy of the public’s trust.
The Blockchain build trust with donors, recipients, and other stakeholders reach the right people and improve administration costs and efficacy. Show donors the difference their donation makes, acquire funds rapidly through crowdfunding and hand control to the people you help.
In addition to solving existing problems, blockchain solutions can enable charities and non-profits to deliver results in entirely novel ways that would be impossible without the blockchain.
Binance Charity Foundation (BCF) launched its blockchain-based donation portal at the UNCTAD World Investment Forum.
The foundation is a revolutionary donation platform for nonprofits to provide transparency and accountability by making financial information to donors.
The platform is built on the Blockchain technology to ensure that the process is traceable, immutable, and reliable.
”Donations through the BCF platform will ensure full transparency, accountability and direct reach to end recipients,” said Helen Hai, the head of the Blockchain Charity Foundation (BCF).
BCF’s mission is to bring accountability to charitable donations, thereby making a difference to millions of lives around the world. They plan to play a vital role for the communities they support and have an impact on society from the way that they deliver their services to the way they operate within the community.
This platform can also provide proof of need and proof of receipt to ensure that the cause is indeed a worthwhile one and that the funds reach the intended party. And because blockchain lowers administrative costs, more funds can reach the right, needy recipient.
For charities, overhead costs have been a point of much contention. These costs denote the number of donations that goes to administrative expenses versus an actual cause, and while many see overhead costs as necessary, exorbitant administrative expense percentages are a red flag.
In that perspective, BCF combined forces with 47 companies to introduce the Pink Care Token, a social-impact stablecoin issued on Binance Chain. With the aid of it, the alliance is running a poverty campaign to empower 1 million women in developing countries to improve feminine health and wellbeing. Even this shows how blockchain can iterate charities workflows in the best way.
The primary administrative cost for charities is associated with fundraising and marketing or getting the word out about the charity. Blockchain-based platforms are aiming to provide charities with a marketplace to reach a ready-to-give audience, and these platforms take far fewer fees than traditional marketing and fundraising agencies.