How Cryptocurrency and Web3 Are Reshaping Philanthropy
Main Takeaways
Blockchain technology holds the promise to enhance the way we make the world a better place.
From making charities more transparent to streamlining urgent donations, here is how Web3 can support humanitarian efforts.
Learn how blockchain, cryptocurrency, and Web3 are changing how charity organizations operate, from enabling new fundraising avenues to providing transparency.
Digital assets have revolutionized the way we interact with money. However, it's not just investing and banking that crypto is disrupting â Web3 is already proving to be a game-changer for the charity sector.
The two biggest benefits of Web3 are addressing the issue of insufficient transparency, which is one the main criticisms mounted against charities, and providing an efficient way of donating in emergencies and other situations where time is of essence.
Transparency: Tackling the Lack of Trust
The lack of transparency is a major issue in the charity sector today, as evidenced, for example, by a recent report showing a decline in trust towards nonprofits in the United States.
Concerns of fund misappropriation and mismanagement by charitable organizations result in the erosion of trust, increased scrutiny, and people being hesitant to make donations.
Digital assets can help address this issue, improving transparency in three main ways.
Trust:Â Blockchain technology offers a way to regain donorsâ trust. Donations â in the form of transactions recorded on the blockchain â are visible to all.
Accountability: Itâs extremely difficult to alter transactions once theyâre on the blockchain. By introducing the immutable donation process, non-profit organizations can demonstrate that contributions are safe from misappropriation.
Tracking: The donations made to organizations that accept digital currencies are easily trackable in real time.
Efficiency: Direct Crypto Giving
With cryptocurrencies, donations can be made more efficiently due to high transaction speed and low cost.
Humanitarian crises caused by natural disasters or war may disrupt the affected peopleâs access to traditional financial services when it is needed the most. At times when funds are urgently required to cover shelter, medical supplies, food, and other essential needs, the speed at which crypto can be transfered cross borders, means donations can reach affected individuals before fiat does.
Already, cryptocurrencies are increasingly used to provide fast, low-cost, borderless, and transparent financial aid to those in need. In contrast, traditional donation methods like bank transfers can be time-consuming and involve higher transaction fees.
Organizations like Binance Charity offer a platform where donors can send crypto aid directly, eliminating hefty transaction fees and reducing the time it takes for these funds to reach those in need. Learn more about how it works in our blog, This is Where Your Satoshis Go: The Journey of Your Donation with Binance Charity.
Increasing Crypto Adoption
The acceptance of digital assets as a means of donating funds is on the rise. According to The Giving Blockâs 2023 Crypto Philanthropy report, cryptocurrency adoption has skyrocketed among leading charities.
The same report cited another study found that 49 organizations on Forbesâ list of âAmericaâs Top Charities of 2022â accepted crypto donations â up from only 12 in 2019.
Following the earthquake that hit Turkey and Syria earlier thus year, Kizilay (Turkish Red Crescent) opened its doors to crypto fundraising, joining many other major nonprofits that already accept donations â including UNICEF, Red Cross, Mercy Corps, CARE, Save the Children, and many more.Â
Last year, Binance Charityâs donation became the first to be accepted by The United Nations High Commissioner for Refugees (UNHCR) in stablecoins.
Binance Charity
Last year, we launched the first-ever Binance Refugee Card, handing a convenient payment tool to over 200,000 existing and new Binance users who were forced to leave their homes in Ukraine and move to other countries in Europe. This initiative gave displaced people with urgent financial needs, who may not have been able to access their money via traditional financial organizations, the freedom to quickly and securely send and receive funds.
We built on this by also offering a crypto-based cash assistance program, which helped 15,000 displaced people scattered across Europe to secure $75 per month for three months from Binance Charity. This allowed them to buy essentials as they adjusted to the new circumstances.
For more information on these initiatives, read our Binance Charity for Ukranians: Help Report.
Unleashing Compassion Through Crypto
The utility of Web3 technologies is not confined to investment and online payments. Crypto and blockchain offer solutions to address some of the biggest challenges that the charity sector faces today.
Itâs important to invest in blockchain research and education to ensure that everyone â especially those in need â has access to and can benefit from Web3. This is precisely the focus of Binance Charity's efforts.Â
Weâve received over 80,000 applications to our various educational programs, indicating a steady rise in demand for Web3 knowledge. To meet this demand, weâve arranged more than 300,000 hours of Web3 training and funded over 67,000 scholarships worldwide to help make blockchain education more accessible.
Learn more about Binance Charity today.