Relying on Technology, Not on Emotions: How Blockchain-Based Platforms Will Change Philanthropy

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Even though there has been a general rise in philanthropic activity in the last few decades, and this is, of course, a good thing, many of the difficulties inherent to the industry are far from being resolved. Philanthropy faces many problems, including the inequality of fund distribution between categories and causes, fake charities, and inefficient spending. In light of these circumstances, it would be impossible for blockchain to completely overhaul the industry, but the BANKEX Foundation offers a solution for at least two of them: we will facilitate the entry of crypto investors, and monitor spending of personal donations in each particular case.

Philanthropy is about benefiting society, not personal Salvation

For centuries, rich and powerful people have tried to improve their image through philanthropy. Shortly after its inception, the Catholic Church began promising to pardon certain types of sins through the sale of ‘indulgences’. By the 16th century, many had become fed up with these immoral practices, and in 1517 Martin Luther’s disgust led him to publish the 95 Theses, which provoked the Protestant Reformation.

Ever since then, the idea that a donation can offer moral redemption for the donor becomes more and more outdated as the society overcomes its immediate, primitive problems. Along with technological advancement comes more time and possibilities to start thinking about less basic matters.

As we enter the new era of donation for benefiting society when people are more interested by the usefulness and the impact of the donation more then by the fact itself, the question of efficiency is particularly acute.

As a result, individual cases and smaller charities where donors can see exactly where their money is going and how it is spent have become more popular.

Additionally, several studies show that the reasons for giving are manifold, but are in general are often highly personal and emotional. Even though their numbers are rising, few people choose to donate based on careful research and assessment. We plan to change that.

BANKEX Foundation Charity proposes that relying on technology rather than emotions will increase the transparency, efficiency, and efficacy of all donations, large and small.

Relying on technology rather than emotions

After the collapse of the British charity Kids Company in 2015 and the recent Oxfam sexual abuse scandal, analysts warn that large charities have lost their credibility and are too big to operate efficiently. This is not hard to explain: the bigger the organization is, the more cases curated, the harder it is to monitor.  They may also spend more money on auxiliary issues such as marketing, or even charity nights and galas.

But when searching where and how to donate, particularly when the amount of money is significant, is big always bad?

BANKEX Foundation Charity will give you a choice between big and small by gathering individuals, small organizations and international charities on one platform. All of these people, projects, cases, and organizations will search for causes and donations on our Charity platform, and because Blockchain offers a secure, publicly-available database of transactions, this exchange will be completely transparent. There will be no possibility of cheating or omitting details, it will be universally accessible. And the need to spend on marketing, more unobvious expense item for donor’s money, will be eliminated!

Armed with the information to choose

Through BANKEX Foundation Charity, every donation is broken down into its elements as they relate to the expenses of the company that received it. Smaller charities may use the money more efficiently, but many larger organizations have a global reach and can affect change all over the world. Donors will be able to easily prioritize their gifts and see where exactly their money is going.

For example, if you are interested in contributing to the search for the cure of a specific disease, the conservation of rare animals, or the care of elderly people, you would select this category and choose the company(ies) to whom you would like to donate.  Let’s say that you choose a tiger conservation organization. The expenses are then calculated to the minutest detail. It’s up to you to decide whether you want to donate to a huge tiger reserve where the most money goes to the salary of the person who treats the tigers, or a small one where more money goes to the animals’ living conditions.

Thus it depends on your priorities when it comes to deciding to which reserve to donate: where animal feed is expensive or where you can feed twice as many tigers with the same money. Every expense is known up front, from the tiger food to the office supplies.

After the donation is collected, the beneficiary is required to submit periodic expense reports, which hold them accountable. Additionally, donors will be able to influence the beneficiaries’ reputations through a rating system, proportional to their donation amount. If the beneficiary’s actual expenses differ from the stipulated ones, this will automatically be reflected in the company’s rating. Thus other potential donors will be able to see how and where the money was spent, and make their decision based on that information.  Because in any Blockchain system it is impossible to completely erase data records, this transparency in the BANKEX Foundation Charity platform would ensure that no cheating or foul play could occur for long.

Crypto, a new big source of donations

Another important part of BANKEX Charity that can’t be ignored is the new category of cryptodonors. Here is a whole new audience with high standards of transparency. Philanthropy needs serious help to adopt to changing demands, but in return it will receive an important new input source. It’s not a secret that people who make money easily tend to spend it easier too: those who hoped to buy two pizzas with their 10,000bitcoins, $41 at the time, were ready to lose them just as quickly.

Donating by credit card was unimaginable only some twenty years ago and virtual money transfer seemed like a crazy challenge before that. It’s crypto’s time now.  Despite the ambiguity of some countries’ relationships toward cryptocurrencies, the dire situation that the global philanthropy industry currently finds itself in necessitates a comprehensive regulatory solution.

BANKEX Foundation Сharity has no illusion of solving all of the numerous problems that exist in the charity industry. Many of them will require decades of work to be fixed. However, with more information and transparency, augmented by a wider range of donation resources, the average donation will see its efficacy and efficiency significantly rise.  Blockchain promises to add some rationale and reliability to the emotional gamble of today’s global philanthropic scene.

For more information, please, visit https://opencharity.io/.