Fundraising March 11, 2023


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The Growth of Online Fundraising: Challenges and Opportunities
The fundraising sector has become increasingly popular in recent years thanks to the ease of access to online platforms that allow nonprofit organizations and individuals to raise funds for important causes. However, despite the growth of the sector, there are still significant issues that need to be addressed.

Transparency in Fundraising: The Importance of Informing Donors
One of the main issues concerns the transparency and traceability of the funds raised. It is important that donors know exactly how their money will be used and that nonprofit organizations regularly publish detailed information on their finances and financial management. Additionally, it is important for fundraising platforms to adopt rigorous measures to ensure that the funds raised are actually used for the intended cause.

Transaction Cost: A Challenge for Online Fundraising
Another issue concerns the high cost of transactions. Fundraising platforms often charge high fees on donations made. This can discourage donors from making donations, particularly for smaller amounts. Additionally, the fees can have a significant impact on the amount of money that actually reaches the cause for which it was raised.

Cybersecurity: A Critical Factor for Online Fundraising
Platform security is another important issue. Donors’ and nonprofit organizations’ personal information may be vulnerable to cybersecurity breaches, and fundraising platforms must ensure the security of user information. Additionally, it is important for platforms to adopt measures to prevent potential fraud or abuse of the fundraising system.


Blockchain technology: An effective solution for the fundraising sector
Blockchain technology is an effective solution to the problems faced by the fundraising sector. With the platform’s transparency, traceability, reduced transaction costs and security, greater trust can be built between donors and nonprofit organizations, making the fundraising sector more sustainable and reliable.

Transparency and traceability of transactions through blockchain technology
Blockchain technology ensures transparency and traceability of transactions, which can be securely and immutably recorded. This allows nonprofit organizations to openly and transparently publish information about their activities, and donors to verify where their funds have been allocated and how they have been used. This way, blockchain technology fosters trust between the parties involved.

Reduced transaction costs through blockchain technology
Furthermore, blockchain technology reduces transaction costs associated with fundraising platforms by eliminating the need for intermediaries, such as banks and money transfer companies, to process transactions. This means that transaction fees can be reduced or even eliminated, allowing donors to allocate a greater portion of their funds to the causes they wish to support. This advantage can attract more donations and improve the sustainability of the fundraising sector.

Security of fundraising platforms through blockchain technology
Blockchain technology ensures the security of transactions in fundraising platforms by using advanced encryption to protect user information and prevent fraud and system abuse. Thanks to this security, donors can feel more secure when making online donations, and nonprofit organizations can protect the personal data of their supporters. This improvement in security contributes to building greater trust between the parties involved and can enhance the reputation of the fundraising sector.

Case Studies


Blockchain technology becomes relevant for philanthropy fundraising
Blockchain technology is becoming increasingly relevant in the philanthropy and charity fundraising sector. According to a report by Transparency Market Research, the global blockchain technology market for philanthropy and charity is expected to grow at a compound annual growth rate of 29.1% between 2018 and 2026, thanks to the increasing awareness and adoption of cryptocurrencies as a donation method.

Successful examples of blockchain-based fundraising

  • One successful example is the American Red Cross fundraising campaign after Hurricane Harvey. In collaboration with BitGive, a blockchain technology company, the American Red Cross created a blockchain-based fundraising campaign to provide financial assistance to hurricane survivors. The campaign achieved its goal of $500,000 in just three weeks.
  • Save the Children had a similar success in their 2019 fundraising campaign. By using blockchain technology to track donated funds and ensure they were exclusively allocated to those in need, the campaign raised over $1.4 million in just two months.
  • A survey conducted by Fidelity Charitable revealed that 72% of donors would be willing to donate in cryptocurrencies if they understood their operation better and if there was a secure way to do so. This demonstrates that using blockchain technology as a means for fundraising has the potential to attract a large number of donors.
Find out how we can help you
We offer consulting services to assess the feasibility of adopting blockchain technology in the fundraising sector, helping organizations improve donation management and achieve their goals.
First, our consulting team collaborates with the client to understand their specific needs and long-term objectives.
This includes the need to improve transparency, reduce transaction processing fees, increase transaction efficiency and speed, and enhance donation security.
Next, we will conduct an analysis of the existing fundraising processes to understand how current processes can be improved or automated through the use of blockchain technology.
This analysis includes an assessment of current costs and fees, as well as opportunities and challenges in implementing blockchain technology.
Once the client's current situation is understood, our consulting team will evaluate the technical and implementation requirements of blockchain technology.
This phase includes identifying the most suitable blockchain technology for the client's needs, defining security requirements, designing the solution architecture, defining interoperability requirements with other systems and estimating costs.
Finally, based on the analysis of processes, requirements, and client objectives, our consulting team will define a detailed implementation roadmap that outlines the necessary steps to implement the blockchain-based solution.
The roadmap includes a design, development, testing, and implementation plan, as well as an estimate of the costs and resources required for successful implementation.
If you want to improve your organization’s donation management and achieve your goals, you may be interested in discovering how blockchain technology can help you. Book a free 20-minute introductory call with our consultants to learn more.
During the call, we will discuss your organization’s specific needs and provide you with information on how our consultancy can help you assess the feasibility of adopting blockchain technology in the fundraising sector.
Book a free consultation
Click on the link below to book your free 20-minute introductory call and find how we can help you achieve your goals.
We look forward to speaking with you!
We provide concrete solutions to market limits, through blockchain technology

Since 2018 we have been guiding companies in responsible innovation, through the choice and best application of decentralized technologies. With offices in Venice and Milan, partners in Europe and the Middle East, we are the reference Blockchain Integrator for medium and large companies. We are part of a continuously growing Group that offers an integrated platform of services for innovation and research in the technological field.

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To book your free 20-minute consultation, simply click on the link provided on our website and select an available time in our calendar. During this call, we’ll discuss your organization’s unique needs and provide insight into how our consulting can help you evaluate the feasibility of adopting blockchain technology in the fundraising industry.
Some successful examples in the blockchain-based fundraising industry include, Helperbit, and Giveth. These platforms use the blockchain to ensure transparency, traceability and security of donations, allowing donors to track the use of their funds and non-profit organizations to manage donations efficiently and transparently.
The main challenges in online fundraising include transparency, transaction costs and cyber security. Blockchain technology can address these challenges by offering transparency and traceability of transactions, reducing transaction costs by eliminating intermediaries and ensuring the security of fundraising platforms through the use of advanced cryptography.
Blockchain technology reduces transaction costs by eliminating the need for intermediaries, such as banks, to process transactions. This reduces or eliminates transaction fees, allowing donors to direct more of their funds to causes they want to support, making the fundraising industry more sustainable and attractive to donors.
Fundraising platforms based on blockchain technology use advanced encryption to protect user information and prevent fraud and abuse of the system. Additionally, due to the decentralized nature of the blockchain, information is distributed across a network of computers, making it difficult for hackers to manipulate or compromise the data. This ensures a high level of security for the personal information of donors and non-profit organizations.