Blockchain allows us to increase trust and transparency in everything that happens around NGOs: from donations to the projects in which they are used and the social impact they generate.
As a result of the latest events seen in the media, that the Third Sector, and in particular the NGOs, have lost part of the trust and credibility of society and its donors is an undeniable fact.
Blockchain technology allows you to restore that lost trust and credibility as any donor can track their donation at any time and verify that their money is being used for its intended purpose. This would generate more confidence, and therefore would increase donations. But if it is so “perfect”, why is it so difficult to implement Blockchain in the social sector? Of course: because everything new is scary, and because it is expensive… but it doesn’t have to be that way.
Regarding fears, Blockchain is sometimes understood as a “policeman” who comes to monitor what NGOs do. Far from being a policeman, Blockchain is an ally because it allows NGOs to communicate with the donor in a totally different way than it is done up to now. And it allows the work of an NGO to be valued: educate society, raise awareness and bring donors (and people in general) closer to their work. Thus, they will be able to understand the real needs of an NGO, what their management consists of and how they finance projects. On the other hand, it makes them more efficient, thanks to smart contracts (smart code that, depending on a condition, executes and automates actions) and will allow real-time auditing. But transparency does not interest everyone. Many are not interested in showing “their dirty laundry.” And Blockchain forces ordering and improving internal processes.
As for the cost, we need not fear. There are more and more platforms, such as iBS from iCommunity Labs, that allow access to this service in SaaS mode (pay per use) and therefore without the need to undertake an ad-hoc development of great costs, and how they are customized and integrated with For the rest of the organization’s systems, this solution facilitates the work of audits, thus reducing their expenses.