How To Use Blockchain Technology To Aid NGOs In Fundraising?

With the existence of nonprofits and non-governmental organizations (NGOs), it becomes quite smooth and manageable to raise funds for the needy and other social causes. However, there are multiple challenges being faced by these organizations, whether it’s about trust issues or lack of proper knowledge of the right technology to reach the corporate donors. Maintaining transparency in the internal operations of the NGOs is not possible in most cases and this often leads to a level of mistrust amongst donors. To minimize these issues, the concept of Blockchain Technology comes in really handy.

Statistically, there are more than 10 million NGOs functioning worldwide. These nonprofit organizations get enormous sums of money in the form of donations from a variety of sources, including governments, businesses, individuals, crowdfunding platforms, and private benefactors. NGOs work hard to help the needy in order to fulfill their honorable and moral objectives, but they frequently face accusations of lacking transparency in the donation process.

Is Blockchain Technology The Solution For NGOs Problems?

Incorporating blockchain technology into NGOs' operations is a practical method to solve the issues that plague them frequently. The operations of NGOs will become transparent and unchangeable thanks to an integrated blockchain system. Any food NGOs or NPO's value chain will reveal that a blockchain-enabled system may achieve this transparency at every link in the chain. By increasing knowledge and assisting social groups in developing shared systems of record for corporate donors, blockchain technology can enable new paradigms for change.

How Does Blockchain Technology Help An NGO In Maintaining Transparency?

Considering the working of the NGOs, it requires a safe, open, public Blockchain technology to trace and track each and every transaction. On the Blockchain, every transaction can be easily tracked, from the donor making a payment to the NGO receiving it and sending it on to the intended recipient. It means complete transparency is maintained in a secure manner to maintain the trust of the donors in a certain nonprofit organization. Complete transparency in the process can be established with the aid of quick and simple donations, clear navigational pathways, and a history of all transactions.

Role Of Blockchain Technology In Improving Efficiency Of Internal Processes Of NGOs

A blockchain-based system also has the benefit of enhancing internal processes' effectiveness. Internal activities can be managed through such a system considerably more effectively thanks to smart contracts. Smart contracts, for instance, can provide real-time transaction audits. Furthermore, once a blockchain system is in place, validating transactions also becomes simple. All of these elements increase the efficiency of NGOs' operations, allowing them to concentrate on donations and putting that amount to good use.

Building Trust Amongst Donors –

As discussed, blockchain has the capacity to deliver security and total transparency to any system. Donors, recipients, and internal stakeholders all get to see the entire image of the NGOs' internal procedures thanks to this technology. The donors will be able to track their donations and make sure that their contributions are being used for the intended purposes. As a result, NGOs will be able to gain the trust of donors and raise more money with confidence.

Bottom Line

Blockchain technology can be an amazing solution to all the major and minor issues of an NGO. Whether it’s about maintaining damaged reputations or high levels of mistrust, blockchain can resolve all these issues effectively. The fundraising efforts of NGOs become more efficient, secure, and traceable thanks to blockchain technology.

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