Charities often face challenges due to lack of transparency, accountability issues, and limitations in how they can receive donations.
Here, AUC project team asked ourselves a question “Then how can we solve this problems?” and answer is the potential benefits of charity work through cryptocurrency.
Charity work through cryptocurrency offers charities and donors a few notable benefits, including:
Total transparency: Each cryptocurrency transaction is unique and can be easily tracked through the blockchain. Increased transparency and a sense of open accountability can help donors feel safe, make more donations, and increase their reputation as an integrity charitable organization.
Global and decentralized: Most blockchain networks are highly decentralized, which means there is no need to rely on centralized government or other agencies. Therefore, funds can be transferred directly from donors to charities, and the decentralized nature of the blockchain makes it suitable for international payments.
Digital contracts: Blockchain makes it easy to share and store digital data, making it impossible to modify sensitive documents or contracts without the approval of all members involved.
Cost savings: Blockchain technology can simplify the way charities operate, automate parts of the process, and reduce overall costs through fewer intermediaries.
Tax reduction: Take for example a donor in the United States. If you donate with bitcoin, the charity can receive the full amount donated (without income tax). In addition, donors may be able to claim higher tax credits for government agencies.
It is said that ‘Blockchain’ can be a solution to strengthen donation transparency.
UN Secretary-General Antonio Guterres also pointed to blockchain as a technology to solve the “lack of trust”.
- The transaction details are automatically recorded
- Anyone can look at it
- It is well compatible with the donation because it has characteristics that do not change or disappear.
AUC Project team will study and come up with better solutions to utilize blockchain in donation market and make the world better place.