Blockchain based Giftcoin offers transparency in the charity sector
A blockchain start-up, Giftcoin, is designed to bring transparency and trust to the charities sector.
Alex Howard (pictured), co-founder of Giftcoin says: “Blockchain offers an exciting new opportunity to charities. By being more transparent, they could significantly increase funds. Not only is this the right thing to do, the commercial case is incredibly compelling.”
Research carried out by Giftcoin found that by opening up, charities could increase donations and develop a closer relationship with their donors.
Giftcoin writes that the UK is a nation of charity givers, with 81 per cent of consumers giving to charity in the previous 12 months, with the average donation amounting to GBP67. Across age groups, the average amount given annually ranged from GBP26 given by 18-24 years olds up to GBP105 given by those aged 55+.
“Consumers believe that overheads are absorbing almost half (45 per cent) of their donation, with significant portions going on salaries, office rent and advertising,” Giftcoin writes.
The study also revealed that if charities were more transparent, they could significantly increase their inbound donations. Given the option of more transparency from charities about where donations are spent, the average reported consumer increase in giving was 49 per cent, while one in six would double their donation or more.
Luke Purser, Development Director at English Heritage, one of Giftcoin’s partner charities says: “English Heritage cares for the places where England's stories were forged and where they can be retold. To do this we often use the latest technologies and so we're pleased to see the new initiative from Giftcoin, which will help charities communicate to donors how and where their funds are being used. We hope this will be a great new way to raise more funds to support our important work."
Giftcoin is founded by veterans of the charity and tech industry. Howard created UK charity The Optimum Health Clinic, and Tim Bichara is co-founder of fintech start-up Q App, which last year was acquired by Yoyo Wallet. The initiative aims to revolutionise the charity sector through the implementation of blockchain technology, transforming the way that donations are received and tracked.
Giftcoin writes that this technology has the power to increase transparency by following expenditure of funds, keeping donors fully informed about the destination and impact of their giving, and ultimately restoring public confidence.
Giftcoin is running a Token Sale or Initial Coin Offering starting 1st February, which is an innovate way of funding a new crypto-currency by selling a limited amount of tokens to fund growth.
Investment is currently being accepted from sophisticated investors and high net-worth individuals with a minimum investment of USD10,000 for bonus tokens and special discounts. The company says that funds raised through the Token Sale will be used to bring a beta version to market this summer with a number of charities already signed up, including Best Beginnings, Ourmala, The Optimum Health Clinic Foundation, Scotty’s Little Soldiers, Enhance the UK and English Heritage.