Introduction
When you hear the world charity organisation apparently what comes to your mind these people who raise funds to assist those who are in need either a community or a health sector
Most rich people or interested people have made vows of donating some amount of money monthly or quarterly to some charity organization around them but most time they have this fear that the fund or money might not get to the right individual who need such money because there is no record or prove that this money is used for the right purpose.
Currently in Nigeria some group of people or individuals come together with a name and claim to be a philanthropist or a charity organisation and thousands of people donate money to a personal account, only few of this organisation use those fund for the right purpose of helping those in need.
Most cases people do not trust those non-profit organisation so you do not contribute their money and this makes it very difficult for the honest nonprofit organization to raise funds that they need sometimes they even have to go to the government to solicit for funds and government will promise them but will not fulfill such promise because there is no record of whether they fulfill their promise or not.
Less or no trust, no transparency, no accountability has been a big issue to all non profit organisation but implementing blockchain technology is the only way to solve all this problem.
Blockchain technology in charity organizations
First let's understand what is blockchain technology, blockchain technology has to do with cryptocurrency network with public ledger where transactions are recorded and is decentralized because all transaction conducted doesn't require intermediaries and they're also transparent so no need to confide in anyone because all transactions can be accessed by anyone.
Lets see some changes blockchain technology can bring into charity organization.
Transparency
Blockchain will positively enhance charity organisation because of its transparency and accountability, all transactions or donations that comes in will be recorded in a ledger where it is secure and transparent and with the use of complex cryptography and Algorithm all authorized parties will see how much comes into the organization and how it is being spent and this helps to reduce fraud and also increase trust that will benefit both the organisation and its members, since all transactions are transparent there will be a clear overview and the money will be controlled not by just one person or just a selected group of people or be spent in secret.
Even when government promises to assist without assistant it will be known to the public that they did not assist because they'll be no record of their donation in the ledger.
Proper use of funds
Another positive impact of implementation of blockchain in charity organisation is that individuals who donate their hard-earned money to those opposition we'll see how their money are being used either in the community or in emergency health sectors and they will not be a waste and this will be what will motivate more people to donate money to the organization.
Less transaction fees.
With blockchain technology a charity organisation will not only receive hard currency or Fiat money contribution but will also receive cryptocurrency contribution which doesn't require any permission from any third party like the traditional bank it is peer-to-peer transactions with less transaction fees unlike what is being paid to collect loan from the bank or to withdraw donations from the bank.
Smart contract
Smart contracts reduces the need of Lawyers, referees or people that will stand as guarantors because every contract will be decentralized with the use of blockchain and this will help to ensure that funds that are borrowed are used for right purpose and will be paid when due.
Examples of some Blockchain charity organizations
Save the children.
Save the children is a non-profit organization that started implementing blockchain technology since 2013 and honestly they have benefited because they accept crypto the nation and they were also among the first to benefit from bitcoin Black Friday and they have really impacted positively on people's life.
Aidcoin
Aidcoin is another blockchain-based platform where people are able to donate with cryptocurrency and can be able to track they are donations and see how is being utilize by the charity organization.
Binance charity.
Binance charity are committed to impact people's life and with web3 technology has helped them to achieve a whole lot for example they have been able to help more than 2 million people in more than 54 countries and all these were made possible with the use of blockchain technology because they send money directly to the beneficiaries account without intermediaries and everything in the system is transparent for everyone to see.
Conclusion
Implementing blockchain technology in charity organization solve all the challenges involved and brings positive effects to both the system and the people.