Charity System

PaulPaul Member Posts: 13
I wonder if Ethereum could be used to build a better charity system. At present in the USA a charity can legally keep 90% of the donations that they receive for administrated costs, and there has been much documentation that many charities keep more than the 90% threshold! a level which already seems ridiculous at a gut level. If the charity is the middleman I wonder if there is a way that Ethereum could be used to directly give money to those in need of charity. Maybe Ethereum could have a charity fund that could accept donations for a specific purpose. And then if something like 2 out of 3 judges determined that an applicant was eligible to receive funds then the funds would be released to the applicant. So maybe the only administrative costs would be paying the judges for their services.

I was recently talking to a guy who had worked his entire life for a save the whale type non-profit, and he seemed disillusioned, expressing that most save the whale operations were practically scams. And I remember reading a recent article about how horribly inefficient the charities are run by profession athletes. It seems that many charities are ways for people to fleece giving people, or to dodge taxes - maybe Ethereum could change this.


  • minimal_mysticminimal_mystic earthMember Posts: 17
    this is a great idea. i live in South Africa, and here, we find great projects of the 'developed' world sending aid to projects here, and so many times, a big chunk is used to support the admin, and little gets trickled out to actual implementation...
  • JasperJasper Eindhoven, the NetherlandsMember Posts: 514 ✭✭✭
    Of course with bitcoin already, if you know someone that will spend it right, you can send coin directly to where it is used with low overhead and difficulty. So if you had a system where people could figure out where to send it, you could send the bitcoin right to where it will be applied.

    An Ethereum contract could send along money to a (amount,address, description) list. Promise being that those addresses correspond to activity on the field. People could go look there to see if the description matches.. But then, this is probably relatively close to what is the principle now?

    Alternatively, there is the idea of reputation systems. Basically, each person indicates who (s)he trust, and the network determines implied trust, including people that try figure out if charity money is spent well. When you donate, you send money based on this trust. One idea for that is to have each receiver have a little forum. Catch is that people visiting it only see posts from others they have implied trust with. What they think about those posts might be used as information with the reputation system. I.e. if someone makes false alegations, his reputation can suffer if people see through it.

    I dont think reputation systems necessarily need consensus though. Still, Whisper and Swarm can help implement it.
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