Donations are a business. Yes, we know this affirmation sounds terrible, and yes, it is an affirmation, not an opinion. According to some of the high-profile tax bureaus around the planet, the recipient of a donation usually is granted just about 30 to 15% of the money that is offered to them when the donation itself is managed using FIAT currency. When it comes to donations of goods and services in cases of emergencies such as disaster relief, international organizations are the ones handling these donations with the coordination and supervision of a local government.
The Reality of Charities
While this picture does sound horrible for both parties involved in the process (donator/recipient) it can be quite easy to place the blame on the middleman, in this case, the organization organizing the fundraising. But they too are exempt of blame to a point since they are the ones doing the hard work to bring that help to whoever might need it, but the fact is that more often than it should they have to deal with foreign policies and regulations on the countries where they are hoping to bring help.
The Cost of handling Money for a Good Cause
Of course, it cannot be denied that the people are doing this work charges for their services. After all, this is their line of work and the way most of them make a living. After doing a quick search online is possible to find the fact that the charity industry that moves money to various causes around the world generates profits that are listed closely to $750 billion each year. The fact that nearly 60% of this money is spent before reaching the recipient causes a justified amount of doubts and discomfort on people who truly want to help.
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Humancoin and the Search for Technology-Based Solutions
Humancoin is looking to solve that problem by marrying the concepts of philanthropy with digital currencies. The team behind this initiative started their work when they realized that most of the technology used to handle donations in the charity market was fairly low-level. It also was a reason to generate mistrust in a number of good causes that receive cash for donations. By using Blockchain technology and a tokenized utility, a donor can track down the funds granted to a specific cause and see that the money is used properly. The company is also looking to merge e-commerce principles into the equation to make it trustworthy and sustainable over time.
The Long Terms Plans of a new Charity Platform
A platform built to bring synergy between the worldwide crypto market, the charity business and the e-commerce principles surely sound good since it would open a number of doors to increased donations numbers to causes that really needed and it would take away the middleman taking fees just for handling money. Humancoin might be the first ever P2P donation platform, but they surely have every it takes to disrupt a market that needs to be reformed to the core to avoid deviation of funds and the increasing corruption of governments that take advantage of non-profit organizations.
If you wish to learn more about the work of Humancoin as well as the charities they plan to help with their technology, you can visit our Website and read the ANN
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