Following the devastating earthquake of 2010 that caused widespread destruction to an already fragile Haiti, donations for the relief effort began to pour into organizations helping in the region. An estimated $13 Billion was raised to help the people of Haiti in the months that followed the event.
Five years later, compassion gave way to outrage as donors learned that little had changed, and much of the funding had been squandered or lost.
The transparency and real-time traceability of blockchain technology promises greater accountability for donors who demand to know how their funds have been used. Imagine tracking the relationship of donations to relief efforts through the supply chain with blockchain enabled smart contracts. We can know where money has been sent, how it has been used and to whom aid has been distributed. This kind of transparency goes a long way to fight against corruption that is so common during relief work in at-risk countries.
Transfer of funds from a central location to field offices become faster and more reliable with the use of cryptocurrency. Instead of couriers carrying and declaring large amounts of cash across borders, a head office can simply make a transfer into the digital wallet of a field office or workers. The transactions are fast, secure and avoid the security risk of currency exchange and transport.
Organizations often raise funds in one location, and rely on contractors to accomplish their mission “on the ground” in another country. Contracted work and payment tracking is simplified when blockchain transparency is applied.
Tracking supply chain, added transparency and increased security for field workers are just a few ways that blockchain technology will help to advance trust between nonprofits and their donors.
©2018 Nick Runyon & Nils Smith, Crypto For Good