Blockchain and charity: How to restore trust in philanthropy

cointelegraph.com:

Charity initiatives reflect our humanness in a world too much focused on individualism and consumerism. However, trust in charitable organizations and nonprofits has declined drastically over the last few years. Many businesses and individual influencers use giving for branding and promotion, often ignoring to ensure their funds reach the destination accordingly.

The latest “Trust in Civil Society” report by Independent Sector found that trust in nonprofits and philanthropy among U.S. citizens had declined in 2023 compared to 2020.

In the UK, according to a Charity Commission of England and Wales report, the percentage of people who describe charity as ‘very important’ has dropped from 72% in 2008 to only 56% in 2023.

Blockchain technology can underpin financial infrastructure capable of providing an alternative to the traditional way of doing business. Decentralization empowers communities and reduces the reliance on intermediaries, ensuring transparency, borderless interactions, and low-cost and rapid transactions.

Charities and nonprofits can implement blockchain and Web3 technologies to become more transparent and expand their reach.

By adopting Web3, philanthropic organizations can improve the following aspects:

Besides traditional philanthropic organizations adopting blockchain, the charity market can benefit from decentralized autonomous organizations (DAOs) governed by communities, which can reduce the risk of mismanagement.

In addition to traditional charity initiatives, individual Web3 projects can contribute to social causes by allocating a portion of their funds to charity. This approach, akin to corporate social responsibility with a more equitable distribution of resources, can make the world a better place.

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