With the scope and impact of non-profits increasing thanks to technological advancement, transparency has become a key requirement for all of them. In 2020 this conversation will highly revolve around blockchain for good and donor-advised funds. The two will help to increase global effectiveness and improve transparency in philanthropy and fundraising.
Blockchain for Good
There is no doubt that several people have used blockchain funds to deceive the public, such as the Pineapple Fund. However, we cannot use one vice to do away with the entire good that has been brought around by other impactful different platforms. From 2020 onwards a lot of people within the philanthropy business expect blockchains to get bigger and more impactful. With initiatives such as Facebook Global Coin: taking root, the public will keep the conversation going.
Among the already catalogued blockchains, 11% are in the aid, philosophy and donors class. A lot of such initiatives have already kicked off, and a good percent already register a direct impact on the communities. Follow-up on the effects of these initiatives is expected to continue across the world.
Donor-Advised Funds (DAFs)
These funds have always been some of the most impactful ways used by non-profits. However, a lot of unfortunate reports surrounding them has led to many people asking for more transparency. Regulations have also been a way to help reduce scams and litigations.
2020 is a year where closer examinations will be made on DAFs. Such analysis would be used to bring a better understanding around DAFs and how big the vehicle could grow. Already, DAFs have been noted as some of the ways to managing funds released to charities. Given that the entire world is amid economic uncertainties, such hopes make the conversation on DAFs worth having.
Already, DAFs have been noted to have better tax advantages both to charities and to the donor. Also, one can donate in terms of personal assets meaning the scope is quite broad and flexible. These are the two main reasons why DAFs are the fastest-growing charity vehicles in the world today. Its impact cannot be ignored, and this is why its regulations and conversations around its growth and awareness need to continue.
In 2020 the non-profits that will thrive will be those that embrace transparency.