What exactly is charity fraud? More importantly why does it still exist in a time and age where technology has become an extension of man and more and more accountability has become the order of the day?
Perhaps the worst drawback of fraud in donations and charity initiatives is the fact that it deters people from contributing at the risk that their money will never reach the intended target group or worse, for illegal purposes. That’s where blockchain technology comes in.
The allocation and spending of funds is something that can be quantitatively stored and processed to avoid any discrepancy or shady practices. However, outdated systems can be hacked, altered and misused. That’s why the charity business needs some help from the decentralized and safer platform that blockchain based systems provide.
Transparency and accountability along with iron clad security is a blockchain trademark. As the number of participants in a system increase, so do chances of deception, however, blockchain ledgers leave a trail that cannot be altered and can even allow individuals to track the movement of donations within a given chain.
Not only will organizations and charities regain the trust of benefactors and donators, but also will help streamline organization’s systems and processes and most importantly getting the funds to those who actually deserve them!
This is a main problem when it comes to charities operating within and for the children and communities of Uganda. There are multiple sectors that communities need help, from education to health. What’s even worse is that the children of Uganda are the one’s most affected by the inherent socio political and economic disparity in the country. Which is why the guaranteed transfer and use of donations is imperative for impoverished communities such as these.
Global cryptocurrency exchange Binance is at the forefront of providing charities a way to finally breathe a sigh of relief as they launched their Lunch for Children campaign which is aimed at ending hunger and lack of access to education among primary school children. The premise is simple, if a child is hungry, that child will not be able to study and therefore will be left behind in the rat race. To over come this donations are currently being collected via BNBs and a total of $ 37,000 have been collected as of yet.
We know blockchain technology is revolutionary, but we also see the real life improvements and effect it has when applied properly to facilitate communities and regain the trust of those who donate by tracking and providing detailed reports.