43% of people believe that the funds they donate to charity will never reach their goal and as a result, even worthy causes are left with insufficient funding. This 43 % have a legit reason for such attitude though: recent scandals in the world’s biggest charities, who are supposed to be the role models for the whole sector, signalize that the charity mechanism is broken. The American Red Cross who received $500 mln in donations to help Haiti recover after a devastating earthquake and built only 6 houses is just one of the many examples. Even if donors’ funds don’t get completely mishandled, they’re often spent not as efficiently as they could. But due to the fact that in most countries charities are not required to disclose their financial statements to the public, donors can’t make informed decisions on where their donations would be most impactful.
Yet, charity remains one of the best ways to help the most vulnerable ones so people keep searching for ways to donate more efficiently. And guess what? Blockchain holds huge promise here by letting donors see the way their money makes to the end beneficiaries thus restoring the trust and enhancing donation amounts for diligent charities. So even if there’s still a lot of work to be done to make blockchain-based charitable campaigns a mainstream practice, this is a great application of great technology and it deserves as much attention as other aspects of the blockchain world. Moreover, unlike some other spheres where DLT can be applied, in charity, there have already been some interesting real-life show-cases and today we’ll share the loudest of them.
Blockchain has been a hot thing for quite a while and no surprise it’s found supporters outside of the tech crowd – for instance, in the all-time famous super-model, Kate Moss, who shared the recent charity campaign of one of the biggest ICOs in Italy – AidCoin.
Aidcoin’s vision is to make charity transparent and efficient with blockchain, smart contracts, and cryptocurrencies. At their platform AIDChain, which gathers donors, charities, and charities’ suppliers, the fundraising process and donations management are tracked on Ethereum blockchain in stable coins and smart contracts make sure the raised crypto is spent as primarily agreed with donors. This way, charities can avoid volatility risks but still provide donors with full real-time information and control over their funds.
In AidCoin’s recent campaign, they managed to raise $20,050 worth of DAI in support of Cool Earth – a charity which has saved a million acres of rainforests to date – and track how the crypto donation is then spent in real-time. The money was raised through a T-shirt campaign in collaboration with a famous designer, Vivienne Westwood, and their founding company, CharityStars, that’s been auctioning experiences with celebrities for the past 5 years. That’s where Kate Moss, Celine Dion, and other celebs stepped in as supporters. Not only did they share the campaign in their social media and helped raise more money but also spread the word about the concept of crypto charity driving everybody’s attention, including ours, to this simple yet promising showcase.
Once the fundraising process was over, the raised DAI were transferred to the Cool Earth ERC20 wallet on AidCoin’s donation tracking platform, AIDChain. Then the charity used it to pay the fundraising platform, CharityStars, and sponsor its campaign in Peru, as can be seen in the donation redistribution part of the page (see the screenshot below). More details about the campaign can be found in AidCoin’s blog.
Even if this fundraising campaign stole all the publicity, it’s not the only one AidCoin’s launched so far. Their previous campaign in Africa was just as inspiring: a local charity, Alice for Children, used crypto raised through a CharityStars auction with the CEO of Genesis Mining to buy a power generator for a school in Nairobi. And yes, the charity actually managed to pay a local vendor in crypto as is without converting to fiat, enabling full traceability of donations and making it the first fully blockchain-based charitable campaign in the world.
You can also read more about this show-case in AidCoin’s blog where they attach all transaction screenshots and other details. Seems like the future of charity is here and we’re keen to see how it develops!
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This post was last modified on (Eastern Time): 01/03/2019 06:43