In this blog, I’ll highlight some of the ways in which blockchain has been used by non-profit organisations. Perhaps these could provide some inspiration for other non-profits who are thinking about using blockchain.
1. Binance Charity
Binance Charity is an organisation that focuses on improving the lives of those in the ‘bottom billion’/ the poorest communities in the world. They aim to advance sustainable development through the use of both philanthropy and market-based innovations.
There are two aspects of this organisation; Binance Charity, and Binance Charity Wallet.
The charity aims to tackle world hunger by using donations in order to supply food to hungry children in various parts of the world; one example is a school in Kampala, Uganda called “Jolly-Mercy Learning Centre” (created in 2006). Here, child hunger has had a significant effect on the children’s education, and Binance Charity looks at how this issue can be tackled through social donations; in this instance, charity is directly involved in the initiative.
Here’s a video by Binance Charity, which highlights the importance that donations hold in helping a child’s education.
Binance Charity Wallet
The other aspect of the organisation is what is known as the Binance Charity Wallet. This ensures that donations can be tracked and traced by the donors to the project. If donors don’t specify which project they want to donate to, the funds go to the Charity Wallet and are then distributed by Binance.
Because this is a blockchain-based system, it means that the financial transactions can be looked at with full transparency. This is great news for those who may not know which projects to fund directly but still want to be able to keep track of their donations.
2. Social Alpha Foundation (SAF) – Fund Distributor
The SAF carry out a very similar initiative to the Binance Charity in the sense that they also emphasise the importance of blockchain technology in the nonprofit sector. The SAF focuses on the aspect of access to education and turns funds from individual cryptocurrency holders into grants; these are then used to support social impact projects.
There is a system in place which allows for organisations to apply for a grant which ranges from $10,000 to $100,000. After various levels of screenings/ interviews, the nonprofit organisation may be granted the money by SAF, and what they spend the money on can be tracked through this blockchain system.
One example of a project is known as ‘Amply’. This was a project which focused on making a blockchain application that tracked the attendance of students, by saving a paper chain of records, and helped to allocate funding to the right places. This saves time (over 4,000 hours per month) for teachers, who would have to record attendance as well as do their actual job of teaching. Not only was it secure, but it also seemed to improve efficiency by a substantial amount.
Qazzally’s Two Cents
This way of funding has the potential to provide an efficient and secure way of progressing projects around the world and empower communities. I think it’s great that charities are evolving their use of technology to solve issues in a world that is constantly transforming. On top of that, it shows that blockchains don’t need to be focused only on private profits; they can be a tool for good.