Non-governmental organizations, or NGOs, which aim to tackle some of the most difficult and pressing problems in society, often encounter their own problems while trying to solve the problems of others. NGOs find themselves in difficulty in obtaining and retaining support from the general population and larger donors, raising funds and ensuring transparency over the functioning of their organization. These are influenced by changing societal views on how best to address certain issues, from doubts that donations to these organizations are truly reaching those in need and the doubts that the small amount you can offer is likely to be to have effect at all.
It is estimated that all over the world, there are 10 million NGOsand that in 2017 the charitable organizations received $ 410.02 billion. Unfortunately, much of this was lost due to corruption or financial inefficiencies, which led to growing mistrust in the sector. Blockchain technology, with the wealth of features it can offer, can provide a solution to many of these problems. The use of the blockchain would alleviate many of the doubts that deter people from donation, such as corruption and mismanagement of funds, thus encouraging people to continue donating to important causes in which they believe.
In many ways, it is important to consider what drives people to donate, or what might make them hesitate, as this can help explain what effect the scandals and charges that NGOs could have on donations and support could have. In recent years there have been a myriad of examples of corruption and sexual misconduct scandals that have affected the public image of various NGOs, at the same time casting doubt on the effectiveness of NGOs as a whole. In cases like the OXFAM scandal of 2018 or Greenpeace financial scandal in 2014, where 3 million pounds of funds were lost, it is clear that public confidence in NGOs is strongly influenced by these events. Doubts arise both in terms of where donations end up, and in those who guide the organizations they have chosen to donate. Where large organizations may be able to survive the wave of doubt following such scandals, smaller local organizations are likely to be much more affected.
What can be learned from scandals involving NGOs is that accountability and transparency are crucial to ensuring that an NGO is able to complete the mission and the vision that was created to do. Blockchain technology can offer only the tools necessary to make it possible. Because the data contained in a blockchain is secure, immutable and, if it is a public blockchain, publicly accessible, the activities of an NGO would become transparent to the public. When donors are able to see not only that their donations are actually used for the right purpose, but exactly how their funds are used, it is likely that any distrust that has accumulated around NGOs would be significantly reduced. It is important to note that this is not limited simply to the funding of the issues, but to any other activity of an NGO, which are all crucial.
In fact, the use of the blockchain to record the use and management of funds within an NGO is not the only way in which blockchain can have a valuable effect on the industry and it can also play a fundamental role in promoting investments with a social impact. The cryptographic funds have the opportunity to exploit the power of the blockchain not only to create a safe and protected pool of assets for investors, but also to donate a percentage of that profit to projects of social impact, all traceable through technology blockchain. The combination of investment blockchain allows both investors and recipients to see and track fund transactions on their journey to the project in question. The immutable nature of Blockchain means that the movement of funds is registered and immutable, allowing a greater level of trust. The blockchain industry and cryptocurrency can and must be exploited for the social good.
Blockchain technology can offer the NGO industry the means to regain public trust. Social investment in all its forms benefits from a technology that offers an immutable ledger of transactions, increasing trust and transparency in charity and NGOs, for both investors and recipients. As with most things, people need to know that they can trust an entity to do as they have promised and feel that they can do it safely. When there is transparency and accountability, confidence in NGOs' capacities will increase, less fear of corruption and a greater likelihood of regular donations, even small amounts. Ultimately, NGOs will be able to do their job better and this is good news for everyone, regardless of whether they are out of the blockchain or not.