How Are Donations Spent And Why It’s Time For A Change?

The nonprofit sector is worth around 350 billion dollars. However, it is plagued by gross inefficiencies and corruption cases. For instance, when an earthquake jolted Haiti some 8 years ago, massive media coverage resulted in the collection of 500 million dollars. This amount was donated to the Red Cross to build houses and treat the injured.

A few years later it was found that the Red Cross has built only 6 houses and as a result, people are still homeless. This is the reason that there is a lack of trust among people on the efficiency of the nonprofit sector.

It is impossible to track the donations because the donated money passes through various channels. The list of these extreme instances is depressingly long. People around the world have begun to lose their trust in the non-profit organizations.

However, Blockchain is seen as the way out of this labyrinth. By emphasizing on Blockchain, its smart contracts, and community verified transactions, the transparency in the system can be maintained.

It would be futile to blame the charities. Because it was impossible to have a system at your fingertips that track and record every donation. On top of that, to manage donations it took a team of people.

But now, all this can be automated.

Luckily there are companies like ClearAid that realized this early on. The team is working on the clock to help charities to decrease their administrative expenses and get rid of inefficiencies.

So, let’s see how this organization is emphasizing on payment automation and Blockchain technology to rebuild the trust in charities.

A phenomenal decrease in the administrative expenses

In the case of traditional channels of donations, the money usually goes through various middlemen like the government agencies and financial institutions. And in the end from 20 to 80% are used to cover operational, administrative costs and salaries. So, in some cases, only minor part of the money goes to help people in need.

However, the ClearAid contributions are executed directly as Blockchain technology is devoid of intermediaries. Thus, the donation process is quite hassle-free and you have a higher satisfaction of witnessing your money being utilized to help communities around the globe.

Trust is the main factor

This charity organization is heavily emphasizing on the Blockchain technology to drive in more trust. It is so because the Blockchain technology uses the distributed ledger technology. With the help of this technology, the donors can easily keep track of the donations they have made.

Interestingly, no one can tamper with the records that are held on the Blockchain. Hence, the charity donors can trace their accounts completely to know the exact flow of the coin in the ecosystem of Blockchain.


ClearAid is aiming to build the first Charity that’s managed by the people.

Signature wallet is used to manage all the donated money and the approval or disapproval of the transaction depends on the community. Using smart contracts, the money is stored as well as distributed. These would also enable the redirection of the fund amount to more deserving causes. In simpler words, with the Blockchain technology used by ClearAid, the donated money will never go to vain.

Keeping Track of the Money You Donated

Blockchain also allows the donors to track their non-profit donations. Moreover, the donors can also continue to monitor their Blockchain donations even when the cryptocurrency transformed into real money. Thus, a number of donors rely on this charity organization. ClearAid also provides a full picture of the utilization of the funds and the end user of your donation.

It is quite evident that the current issues that are plaguing the charity sector are innumerable. One cannot apply traditional methods to counter the problems. However, with the Blockchain technology of ClearAid, things are looking bright for both donors and charities.

ClearAid could be a start to something better – a charity that we all can trust.