FACT: 95.4% of charitable donations never reach their intended beneficiaries
When you donate money to a cause, you probably realise a portion of it goes towards “operating costs” and other incidentals. But do you know just how much of your donation evaporates without ever reaching those you donate to in the first place?
Shocking reports by The Guardian1, Giving USA2 and the World Disasters Report3 reveal the sad truth:
In 2015 alone, out of roughly $373 billion in donations, only $11.2 billion was channeled to affected states. Another $5.9 billion went to local NGOs. While a staggering $355.9 billion went towards “overheads”. That's a shocking 95.4% of funds disappearing into thin air - a number that holds consistent year after year.
This figure is unacceptable and proves that something is broken in the humanitarian sector. It's a wake up call for us to find a better way, sooner rather than later.
The disastrous consequences of a broken
Public trust erodes
Due to the many issues in this sector that have persisted for decades, trust gradually wears away from companies and public.
As a result, both public and corporate donors shy away from philantropy and Corporate Social Responsibility (CSR) initiatives.
Social problems persist
Pressing societal issues in dire need of sustainable development are left unattended, worsening the situation further.
The current model isn't working...
Former United Nations Secretary General, Ban Ki-Moon, called for a review of the entire humanitarian sector right before the World Humanitarian Summit 2016 in Istanbul.
“We're still working in an old-fashioned, centralised, top-down system, which believes in the fallacy of control. We're stuck, and we're not talking about the real issues, which are incentives, behaviour and governance. What we need is a whole new eco-system of smart humanitarianism, which responds to what is needed, which is flexible and diversified, and which is financed in new, smart ways.”
We took that call very seriously...
Introducing a new ecosystem of smart humanitarianism.
Over the past months we have seen launch after launch of white papers aiming to fix the broken humanitarian system by creating financial transparency.
Aside from the fact that financial transparency is merely a symptom of the broken system, the solutions proposed are also between ten and twenty years away before they can actually become a reality.
Let's not sit around and wait for that...
- This coming May we are launching the world's first one-stop shop for social impact.
- This blockchain-based platform will tackle the 5 key industry-wide issues, including financial transparency.
You're invited to join this humanitarian revolution...
Get ready for a blockchain-based platform that creates financial transparency, better governance, reliable causes, measurable ROI for brands, and more social impact!
Join a community of contributors, discover the platform, ensure your spot on the whitelist, and be first in line at the Community Sale.
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