Due to the growing concerns about where the charities and donations end up, there is a constant decline in donation collection globally. People from across the globe do charitable acts to do good and bring about happiness in the lives of fellow human beings.
However, the main reasons behind the decline in great charity practices are the allegation of mismanagement, a large part of charity being spent on the administration, huge cash surpluses, and aggressive fund-raising techniques. But, still, there are some charity organizations on which a vast majority of people trust. Then comes blockchain technology which rescues the image of organizations that accepted to adopt its service. Blockchain helps charities to regain their credibility who are worth the trust of the public.
Crypto-philanthropy
Blockchain has greatly changed the scenario of using money, so it has a major impact on philanthropy. Philanthropy, as we all know, is the act of giving to charities. Now, we can see the practices of crypto-philanthropy, which facilitates charitable contributions by using blockchain technology.
Advantages of crypto philanthropy
Efficient and fast way to raise donation
It was never so easy to transfer and receive money as it is now. This has become even faster with the emergence of crypto-currency. There are hundreds of charity organizations that work on a transnational level and depend on donations; that has now started using crypto-currency for raising funds. Any person can now donate charity to these institutions from anywhere across the globe in a matter of a few seconds.
Ensures transparency of transactions
Another reason due to which crypto-currency has gained so much attraction is the transparency of transactions that crypto-philanthropy brings with it. It records all the transactions in a publicly available spreadsheet and ensures that the donation has reached its recipient. This plays a great role in enhancing trust in a charity organization.
Decentralized and Minimized taxes
Crypto-philanthropy is a way to raise donations globally, and hence this is a decentralized way of raising funds from across the planet. All the process of raising funds is digital, which considerably decreases the taxes and other expenses.
Disadvantages of crypto philanthropy
Lack of technology literacy
The disadvantages of crypto-philanthropy are related to the lack of technological literacy.
Low volume of donation
As a very small portion of people knows about crypto-currency, the ratio of people sending donations through this medium is also low. So, the volume of donation in crypto-philanthropy is comparatively lower than the peso, euro, dollar and real, etc.
Fluctuation in crypto-currency
Another very crucial factor is the fluctuation in the crypto-currency value. However, this can be avoided in the future with the popularity of stable currency. Moreover, you can also exchange your crypto-currency for flat currency to avoid any fluctuation.
Innovations in Cryptophilanthropy
To increase their donations and funds, the traditional charity organizations have started accepting crypto-currency like UNICEF, Red Cross, Hope, and many other big organizations now take charity in different currencies, including the crypto-currency. So, blockchain has actually made possible the transfer of charitable funds apart from the traditional philanthropy means. To support raising their donations, some organizations have introduced their crypto-currencies. These companies value their tokens by financing their activities.
Another innovation in the field of raising funds is the introduction of crypto-funds to be used in philanthropy activities to ensure transparency in the process of making transactions.
Listed below are some of the common institutions that operate in crypto-philanthropy.
Crypto-philanthropic initiatives
1. Kickico
Kickico is an institution that supports philanthropic projects by raising funds through blockchain currency. Any person who hosts biotechnology, agriculture, IT initiatives, etc., can create his project on the kickico site.
This platform has introduced its currency by the name of kickToken for easing the transaction process. The website remains active, and you can even gain benefits from it. KICK value has also earned the capitalization of almost 1.24 million dollars.
2. PinkCoin
PinkCoin plays the role of a mediator between the donors and the philanthropic and human welfare projects, i.e., the organizations that raise funds for some developmental projects like funds for education, health, environmental disasters, etc. PinkCoin also has its currency that is PINK, whose capital value is estimated to be $ 700,000.
Like other crypto-currencies, PINK is also an altcoin that can be sold and bought through the website. However, a unique feature of this coin is that most of the transactions on this site are made for philanthropic activities. So, if you are investing in PINK, you are actually investing in the cause of the PinkCoin site.
3. Pineapple Fund
The donor of the Pineapple fund is an anonymous person who is identified as “Pine.” According to the site, the Pine got 5104 bitcoins after mining for almost one year.
The motto of this funding project was that “from the moment you have enough money, money doesn’t matter anymore.” Pine sold all the bitcoins he had mined earlier and got 55 million dollars. Later this amount was donated to several philanthropic projects, which can be checked on the Pineapple fund site.
4. BitGive Foundation
BitGive foundation was created in 2013, and this is a platform that donates bitcoin to philanthropic projects around the globe. The main defining features of the BitGive foundation include the low cost and fast speed of transactions. Moreover, transactions can be tracked in real-time to know how the donated amount is being utilized.
The main philanthropic projects financed by the BitGive foundation include constructing houses and other support for the victims of natural disasters and the project that functions for providing clean water in the areas affected by drought.
5. GiveCrypto
GiveCrypto is another initiative to help deserving people. This is unique from other crypto-philanthropy platforms in that it does not donate to the projects or NGOs, rather reaches directly to support the excellent people with their needs.
This specifically needs blockchain tools for successfully carrying out this kind of charity. A large majority of people own a cell phone but don’t have a bank account. So, GiveCrypto directly reaches out to the needy and transfers amounts in their virtual wallets, which they can withdraw in their local currency.
6.Binance
Binance allows crypto exchange on a global level. It is considered to be the largest crypto-trading platform when it comes to assessing the trade volume. At the United Nations Conference on Trade and Development, Binance has launched its charity arm by the name of Binance Charity Foundation.
Final words
With the increase in the popularity of blockchain technology, organizations are continuously embracing it to secure their business. The same is the case with philanthropic organizations. Charitable trusts are increasingly shifting to cryptocurrency to secure the whole process. This also allows fast and transparent transactions with minimal tax and expenditure on the organization. Philanthropy is emerging as a novel way to collect and distribute donations across the globe.
We can see that the emergence of blockchain has brought about many initiatives in the philanthropic sector. Moreover, still, a lot of improvements are being made in this sector. So, if you are also interested in sending your funds in a secure and fast way, you can also adopt crypto-philanthropy initiatives.
