Cryptocurrencies are known for their massive impact on the financial world. They have created a secure and fast transaction platform and have a massive cross border transactions impact. It has also become an ideal investment option as the value of cryptos keeps on rising.
However, crypto use as a fundraising platform has not been as much spoken about as its other roles. When in the real sense various entities are using blockchain technology to raise funds for various projects. Once crypto is legalised it can be used like any other currency hence ideal for fundraising.
For example, blockchain entrepreneur Wendy O is raising money through cryptos to help relocate and improve a local gym for the youths. She has used her online influence on various social media platforms to reach out to various crypto users willing to contribute to the project.
Wendy is not only allowing for donations in crypto, but she has also created an NFT line on the Theta blockchain and has since sold thousands of them.
The other organizations that use crypto to draw funds for their projects include the Dementia Society of America and the Kessler Foundation. The PAWS Animal Rescue in Chicago has also recently started accepting donations in Dogecoin. It sounds poetic to save a dog with crypto whose whole concept is about a meme involving a dog.
Other than individual outfits, cryptos can also be used in championing various causes in society. For example, Bitcoin was crucial in Nigeria during the #EndSARS protests. With the government blocking all the financial access of financers, it was left to BTC to be used in raising funds for medications and legal fees of those involved in the demos.
Bitcoin is decentralised such that no government or single individual controls its operations.
Reasons cryptos are ideal for charities
Other than making it easy to send money, cryptocurrencies come with various use cases for charity causes. These include;
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Transparency
The transparency concerns over charities have been increasing over the years. A study established that on a scale of 0 – 10, charity is rated at 6.3 for transparency. This is below the foods and drink industry which has a rating of 6.4. The UN had also released a report that more than 30% of aid never reached the intended purpose.
Blockchain technology makes it easy for donors to receive their donations. All transactions in the blockchain are recorded on a public ledger that is accessible to anyone on the network.
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Operating efficiencies
Cryptocurrencies are more than just the money coming in for the various projects. It also comes with various operating efficiencies that help the various organizations. For example, it reduces the transactional friction that comes with traditional payment methods. The public ledger means the organization does not have to keep track of documentation as everything is available on-chain.
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Digital identity
One of the reasons why most people who deserve help never get it is because of a lack of any official identification. The blockchain can help these populations to have digital identification, hence the possibility of accessing the needed aid.
