The potential of social entrepreneurship is yet to be explored by the tech community around the world. It comes in many shapes, one of which is building tech-enabled solutions that facilitate charitable initiatives.
Entrepreneurship aimed at social good is generally built around individuals willing to donate resources for those in need, mainly through organizations playing the role of a middleman. One of the most common resources sought by charitable organizations is financial aid, whether it’s gathered from individuals or businesses.
Collecting financial aid, however, has always been and still is a very complex “business” that has elements regular commercial relationships are devoid of – it’s not an exchange for a service or physical good, so individuals cannot immediately touch or get something in return to feel the value of the exchange. But more importantly, the matter of trust between the donor and the collector of the financial aid is one of the most critical deal breakers for this form of relationship and for the industry.
Individuals with opportunities to share wealth will always be present across demographics and region. There is, however, something that technology can do to shape the future of giving and foster positivity and trust between charitable organizations and their donors. With payments being a centerpiece of those interactions, modern technologies such as contactless communication between devices and distributed ledger technology can remove the barriers for more individuals to find a way to contribute to the well-being of those in need.
A recent study by Barclays states that the application of blockchain in international aid-giving might help to counter trust issues for charities, providing donors with transparency, so they can be confident that their gift is being used legitimately and effectively.