Challenges faced by charities
GDPR/regulatory compliance
Far-reaching regulations like GDPR, PDPA, and others impact data storage and processing across sometimes-archaic systems, requiring new structures, tools, and procedures.
Cybercrime
Philanthropy Impact found that 63% of charities were concerned about the risk of cyberattacks, which could disrupt their service delivery and expose contributor and service user data.
Donor anonymity difficulties
Some donors wish to remain anonymous for a variety of reasons. However, there is currently no mechanism to facilitate this.
Reputational risk
With recent scandals at high-profile charities, thousands of agreements were canceled. Errors and misdeeds by charity individuals can affect the reputation of the charity and even the sector.
Lack of trust and confidence
Donors require proof that their gifts are spent as promised and wisely. Suspicious of admin costs and executive pay, charity donors seek to ensure their money goes to help those in need.
Inefficient cross-border giving
Donations and charitable giving that cross national borders can be subject to sometimes-arbitrary delay, fees, and other obstructions, decreasing efficacy and trust.
Challenging donation targeting
Charities operate in vulnerable, sometimes-lawless, or ill-regulated situations. How do they ensure that their donors’ efforts aren’t wasted, and aid reaches those who need it most?
Employer liability issues
Legislation covering obligations to employees encompasses volunteers and paid staff. Charities struggle to manage employer liability responsibilities and might face severe fines as a result.
Administrative
and fundraising costs
Forbs states that non-core work consumes 89% of the average real estate agent’s working day. Admin costs grow rapidly, while growing record-keeping and auditability requirements are difficult
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Get expert adviceBlockchain solutions for charity from Aetsoft
Automated administration
Automate administrative and charitable giving processes, making data entry and retrieval rapid, secure, and low-cost.
Accurate aid targeting
Target donations to populations or individuals with verified identities; share this information with donors where appropriate, demonstrating the value of their gift
Accountability in the organization
Know who moved funds, documents, or other assets, with actions recorded, auditable, and tied to verified identities.
Secure data storage and transfer
Protect storage and transfer on-chain by cryptographic encryption, making data safely accessible only through verifiable and traceable digital identities.
Regulatory compliance
Get transparent audit trails and cryptographically protected records and documents to demonstrate compliance with data regulations quickly and easily.
Anonymous giving
According to Life Science, anonymous donors tend to make larger gifts, and with blockchain, they can donate in complete privacy via digital wallets.
Self-maintained employee management
Manage employer liability, internal processes, and onboarding flows with self-executing smart contracts to meet the right conditions before registering new hires or volunteers.
Low-cost cross-border donations
Make cross-border donations on-chain in a variety of digital assets to demonstrate tax and regulatory compliance and move funds rapidly across national borders.
Blockchain applications in charity
Use case 1. Lowered administration costs
Currently
Marketing and fundraising expenses have a significant part in donations, making those more expensive than they could be for donors.
With blockchain
Provide a universal database where donors and recipients could meet, blockchain-powered, intermediary-free, low-cost, and cryptographically secure.
Use case 2. Cost-effective remittances
Currently
Cross-border giving is volatile in terms of expenses; the final cost of a donation deal depends on fees conditioned by the regulatory environment of a corresponding country.
With blockchain
Thanks to its distributed nature, blockchain has no geographical borders and isn’t tied to any region, meaning that you can donate funds overseas without extra fees.
Use case 3. Secure donations
Currently
Traditional giving processes between donors and recipients are fraud-susceptible; donations might go to the wrong hands or end up for the wrong cause.
With blockchain
Perform transactions through blockchain-powered digital wallets to prevent fund theft and trace the donation path to end recipients.
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