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How Charities Are Benefitting Through Blockchain Technology


Blockchain technology is changing the world as we know it. From finance to healthcare, this innovative technology is making an impact. Now, even charities are beginning to see the benefits of using blockchain technology. We will discuss how charities are using blockchain technology and how it is helping them improve their operations.

1. More transparency

Blockchain technology provides a higher level of transparency while keeping donors' personal information safe. This technology makes it easy to keep track of transactions and ensure donors know exactly where their money went. Donors can feel confident about donating because smart contracts monitor all the projects on the blockchain.

2. The ability to completely track funds

Charities often struggle because donors cannot see exactly where their money went. But now charities can show donors exactly how their funds were used through blockchain technology. This is because the transactions are stored on the public ledger ensuring every penny goes where it is supposed to go.

3. Potentially lower fees for charities

According to the World Economic Forum, charities lose around $10.7 billion USD annually due to transaction costs. This is because processing fees are paid at every step of the donation process, making it difficult to focus on their work. However, blockchain technology provides a solution to this. By allowing charities to accept donations directly on the blockchain, they can avoid having to pay processing fees and have the ability to save money and focus on their work.

4. Legally binding smart contracts

One of blockchain technology's most significant benefits for charities is smart contracts. This new development allows charities to create legally binding agreements that are transparent. Thus, every transaction is completely public, ensuring that charities do not misspend their funds.

5. Greater donor retention

Ethereum conducted a study in 2016 on how blockchain can be beneficial for nonprofits. According to this study, organizations saw an increase of 66% donor retention rate when using crypto-tokens. Furthermore, the study found that organizations saw an increase of 58% in transaction size, which means that charities can receive more money overall.

6. Digital fundraising

Crypto-donations are becoming more common. This means that organizations can receive donations in cryptocurrencies like Bitcoins, Ethereum, Litecoin, and others. Organizations can accept donations directly in the form of crypto-tokens. Furthermore, this means that donors can also track where their money went through smart contracts.

7. Crypto-charity tournaments

Many popular video games allow users to purchase in-game items. These items are often earned through gameplay or by purchasing them with real currency. But now, players have the option to give their in-game earnings to charity. This is because they can use virtual coins that have no value outside the game, allowing gamers to donate without spending valuable currency.

8. Support for charities in developing countries

Not many organizations have access to the banking system in developing countries, making it challenging to accept donations worldwide. However, blockchain technology can help these organizations by allowing them to receive transactions without a bank account.


Blockchain technology brings significant changes in the nonprofit sector, making it easier for organizations to receive donations directly. Thus, this benefits both donors and charities.


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