Philanthropy and the ‘tech for good’
Lurdes de Sousa
Digital fundraising is reshaping philanthropy in what may be described as a blockchain revolution. It’s a peaceful revolution but, like every revolution, it has its supporters and sceptics.
Some intellectuals, concerned about the power of “tech for good,” are alerting and even calling for a new social contract. Cassie Robinson writes, “The values that underpin civil society — values of kindness, care, community, solidarity, collectivism are needed at the heart of how technology is considered and developed.” If this is a legitimate cause for concern, undeniably blockchain is a promising revolutionary technology for charities.
The popularity of cryptocurrency is on the rise, particularly among the philanthropic millennial generation. Data indicates that, currently, 13 percent of investors hold cryptocurrency in their portfolios. Among the rest, 20 percent say they may consider investing in cryptocurrency in the next year. Millennials are also a charitably inclined generation. Nearly nine in ten Millennials say charitable giving is an important part of their lives.
Why will crypto-charity be so important in the decades to come?
For those who give, transactions can be made at a higher speed with lower cost while eliminating the need for trusted intermediaries. Because every transaction executed on blockchain is recorded in near real-time and is available to everyone, transactions performed on blockchain can reach recipients faster and at a lower cost than if performed via other transaction methods.
For beneficiaries there is a triple benefit: more money, faster, and with increased security. First, the recipients of the donation receive more money than they would have otherwise because expensive transfer mechanisms are bypassed. This allows donors to send more money directly to the recipients. It also prevents fraudulent intermediaries from pocketing part of the money that was meant for the recipient. Crypto-charity allows charities to operate more effectively and efficiently, and therefore channels the maximum amount possible directly to the recipient.
Today, the major actors of the non-profit sector, including the United Nations Family of Organizations, accept donations in cryptocurrency. This is because crypto-donations as a digital asset receives, holds, and disburses cryptocurrency at its most valuable. Each charitable organization has its own strategies. For example, in October 2019, the United Nations Children’s Fund (UNICEF) launched the CryptoFund. In its first year, according to Forbes, CryptoFund generated revenue of $6.7 billion by accepting Bitcoin and Ethereum donations and is credited with making twelve investments in eight different countries benefiting the lives of vulnerable children.
Be part of the revolution.
*President, Associação Internacional
de Filantropia (Macau)
國際꺽愛協會 (걜門)
Macau Daily Times is the official media partner of the Associação Internacional de Filantropia (Macau).
