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Crackdown Finally Coming on Corrupt Charities
Several individuals want to make the world a better place by donating to their charity of choice, but many are left with the unsettling question of how their money is actually being spent. Corruption is prevalent amongst charities. Higher-ups at big charities often choose to line their own pockets, instead of appropriately using those funds for their intended purpose. Non-profits’ current operational structure lacks overall transparency. Ultimately, donors doubt the intentions of the supposed non-profit.
Blockchain technology could prove to be a game-changer, addressing the many questions that surround today’s non-profits. A new model is emerging for charities, which deals with the inflow and outflow of large amounts of money. On top of that, current accounting methods struggle to keep up with this exchange in capital. Last year, organizations based in the United States took in $2 trillion in revenue. Less than 20% of that, however, came in the form on charitable contributions. People have made fewer donations, as a result of this. Many choose not to donate at all. (Check out what a blockchain is here!)
Blockchain and Corrupt Charities
Charities Aid Foundation recently released a 20-page report. It examines how blockchain technology will affect the way charities raise money and operate. Donors and organizations have examined whether or not blockchain is a viable function for charities in the future. With the benefits blockchain is poised to offer, it looks as if the current system of how charities operate is going to change forever.
Blockchain technology could offer reduction in transaction costs, increased transparency, and overall a raise trust in the legitimacy of charities.