Blockchain and charity: How to restore trust in philanthropy

Charity initiatives reflect our humanness in a world too much focused on individualism and consumerism. However, trust in charitable organizations and nonprofits has declined drastically over the last few years. Many businesses and individual influencers use giving for branding and promotion, often ignoring to ensure their funds reach the destination accordingly.

The latest “Trust in Civil Society” report by Independent Sector found that trust in nonprofits and philanthropy among U.S. citizens had declined in 2023 compared to 2020.

In the UK, according to a Charity Commission of England and Wales report, the percentage of people who describe charity as ‘very important’ has dropped from 72% in 2008 to only 56% in 2023.

How can blockchain bring back trust in charity?

Blockchain technology can underpin financial infrastructure capable of providing an alternative to the traditional way of doing business. Decentralization empowers communities and reduces the reliance on intermediaries, ensuring transparency, borderless interactions, and low-cost and rapid transactions.

Charities and nonprofits can implement blockchain and Web3 technologies to become more transparent and expand their reach.

By adopting Web3, philanthropic organizations can improve the following aspects:

• Transparency — blockchain can be used to build a more transparent donation process in which donors can see where their money is going.
• Supply chain monitoring — decentralized networks can be used to track the supply chain of resources from collection to reaching those in need.
• Track results — thanks to Web3 technologies, donors can track whether their funding has an impact and leads to noticeable results.

Besides traditional philanthropic organizations adopting blockchain, the charity market can benefit from decentralized autonomous organizations (DAOs) governed by communities, which can reduce the risk of mismanagement.

How this DeFi platform uses blockchain for charity

In addition to traditional charity initiatives, individual Web3 projects can contribute to social causes by allocating a portion of their funds to charity. This approach, akin to corporate social responsibility with a more equitable distribution of resources, can make the world a better place.

Some decentralized platforms are already implementing this practice. One example is Uno Farm, a cross-chain yield farming ecosystem that helps users maximize profits by implementing automated strategies.

Uno Farm recently sponsored Humans Care Foundation Water (HCF Water), which built a well in Uganda in collaboration with One Home Mission.

The well in the Bukyakye village provides clean water to over 1,000 people. The well was built as part of the HCF Water’s Clean Water for Nakalama initiative. The whole process was broadcast on HCF’s social networks.

HCF leverages blockchain technology to ensure the credibility and transparency of transactions. It provides various reports, including photo and video proof from the spot and banking statements. HCF prioritizes openness of the entire process. For example, the journey of the latest initiative in Uganda was described in detail by One Home Mission CEO Mutebi Bashir in an AMA session hosted by HCF.

Max, the chief product officer at HCF, commented:

“We believe that the right way of using blockchain technology can take almost every field to the next level, and we prove it on charity.”

Uno Farm is committed to positively impacting the world through its partnerships with HCF and One Home Mission. These partnerships reflect Uno Farm’s dedication to charity and social responsibility, and the team believes that Web3 technologies have the potential to revolutionize philanthropy worldwide.

In addition to its charitable initiatives, Uno Farm also empowers individuals to make the most of the yield opportunities in DeFi. The platform’s recent partnership with DEX aggregator 1inch has introduced the Single Asset Entry feature to its yield farming options. This new feature makes it easier for anyone, regardless of experience level, to start yield farming and earn rewards for their cryptocurrency holdings.

Uno Farm and other blockchain projects are critical to making the charity market more transparent and credible. By leveraging blockchain technology, these projects can provide greater transparency into the flow of funds and ensure that donations are used effectively. This leads to increased trust in charities and encourages more people to donate to worthy causes.

Source: https://cointelegraph.com/news/blockchain-and-charity-how-to-restore-trust-in-philanthropy