What happens when we donate money to organizations. How Charities Spend the money.

People around the world donate billions to charity.and this brings happiness and removes the differences. However, donations are basically wasted through poor management or even fraud. Consequently, The needy are deprived of donations that otherwise would have helped them, the government misses out on money that should have been taxed, and donors become hesitant to donate. Only a very small percent of your gift would actually goes to direct aid, the rest of the donations goes to administrative and fund raising costs ,the charity’s founder, his extended family and friends. There is an excessive insider compensation, and no financial and governance control. The government cannot do anything when it comes to charities fraud. Because there is no law that prohibits a charity from lying to consumers to get money. Instead of opening its books,a charity organization discloses its spending only in broad categories, without any specifics.

Thousands of charities use third party solicitors, and their commissions can be approximately 90 percent of every dollar raised. Third party fund raising is legal, and many charities use it because it is cheaper than having full-time fund raisers on staff. Still, most of us would be reluctant to donate if we knew it. so, the charity itself would rather have you donate directly instead of using a Third-party fund-raising .but that cost, is supposed to be a hard thing to deal with.

Giving to charity should not be like this. Still, it would be irresponsible to stop donating just because some groups are corrupt. Blockchain technology would terminate inefficiency and the lack of transparency when transferring value. through the creation of supply chains that can bring together all of the stakeholders involved with moving money, or services worldwide, including fundraisers, and of course the beneficiaries of aid. Thus, this technology would have a huge impact on charitable giving.  Transparency is one of the things with charities that Blockchain would restore.


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Responses

  1. sandwichbill

    Spot on. These charities get away with too much. They don’t even have to submit full accounts, they tax breaks, they have people working for them that earn a fortune and others that do it for nothing. Bring on the blockchain, if it stops these kinds of abuses

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