Blockchain allows us to increase trust and transparency in everything that happens around NGOs: from donations to projects in which they are used and the social impact they generate.
As a result of the latest events that have been seen in the media, that the Third Sector, and in particular 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, since any donor can trace their donation at any time and verify that their money is used for the intended purpose. This would generate more confidence, and therefore increase donations. But if it is so “perfect,” why is it so difficult to implement Blockchain in the social sector? Well, of course: because everything new creates fears, and because it is expensive … but it doesn’t have to be that way.
As for 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 so far. And it allows to value the work of an NGO: educate society, raise awareness, and bring donors (and people in general) their work. Thus, they will be able to understand the real needs of an NGO, what its management consists of and how they finance the 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 audits to be done in real time. But transparency does not interest everyone. Many are not interested in teaching “their dirty rags.” And Blockchain forces to order and improve internal processes.
As for the cost, we must not fear. Increasingly there are 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 The rest of the organization’s systems, this solution makes audits easier for their work, thereby reducing their expenses.