Blockchain based donation system

Blockchain both as a technology and the applications that are built on top of it, such as digital wallets, trading exchanges, and lending solutions could introduce a whole array of new and innovative tools for philanthropic organizations.When we think of donating to charity, we expect that our money will be funneled towards a good cause. With the incorporation of technology into donations, when supporting a nonprofit is merely a click away, we may accidentally end up funding fraudulent campaigns. For example, in 2012, A person from the USA started a charity project that claimed to help the community by using its funds to create medical clinics. However, according to the FBI, Brockington instead incentivized others to fake documentation on donations to his “clinic” so that their employers would match their donations. Over the next four years, Brockington earned more than $680,000 and spent those funds on himself and his family. Incorporating blockchain into their administrations, charities could quickly resolve some of their organization’s staffing issues. By integrating blockchain into their systems, nonprofit organizations can reduce their body of staff without sacrificing the integrity of their organization. With a smaller administration, there would be fewer overhead costs. This in turn would ensure that a larger percentage of donations go toward the cause that they support. Blocks are stored permanently and in chronological order, so donors can check to see how their donations are spent, who is in possession of their funds at any given time, and where their money has been transferred to. In addition, donating to charities sometimes involves putting our identity into the hands of the charity, and by extension, third-party contractors.
In the USA, cryptocurrency is treated as property, giving it a slightly different status than cash. The Internal Revenue Service allows people to donate property with no tax liability as long as they have owned that property for over one year.As a charity, there’s a benefit to being an early adopter: you get access to a large amount of wealth that other charities don’t yet have access to. There is a financial and time cost to setting up the technology to accept cryptocurrencies as donations. If given to a registered 501(c)(3) nonprofit, the entire U.S. dollar value of a bitcoin donation is tax-deductible, enabling the donor to enjoy significant tax benefits.