Blockchain is one of the most revolutionary and disruptive technologies currently being explored by companies and NGOs.
But there are also inherent risks to charities, social enterprises and NGOs in using blockchain to raise income.
It allows items to be sent peer-to-peer or to be held in an intermediary until results have been achieved. It has the power to transform the transparency of an organisation’s fundraising and donor experience.
For a start, there will be increased pressure on reporting and donor engagement which a team needs to be prepared for.
Secondly, there are reputation risks that need to be managed.
There are also two major distinctions between how charities could use block chain, to fundraise for a project and funds released when objectives are met (which will require a social bond or use of reserves to under-write the project) or to fund specific projects / case studies (e.g. sponsor a child, dig a well etc).
Deciding which route to go down and which partners to work with can be a challenge with such emerging technology.
However, we believe blockchain has the power to be a huge asset in fundraising and working with expert partners we can help any organisation looking to harness blockchain to raise money and/or improve transparency.
- Report from the Commission for the Donor Experience
- Review of Communicating Causes which can be ordered online
- Charity Times and CAF Online articles
- More reading following the PRCA event on blockchain will be available soon.