Although cryptocurrency such as Bitcoin has often being thought of as a drug dealers currency. Indeed many of the early adopters of the currency were indeed those who traded on the darkweb. Yet, things have changed quite considerably from earlier days.
Now what was once scoffed at is being taken up by ordinary people as well as large scale investors on Wall Street. It is being used as an alternative method of financing for numerous startups as well as NGOs. It has freed numerous people from the strictures of traditional financing.
There are also a number of NGOs that have taken the steps to raise financing through ICOs and have started taking donations in ICOs. The ease with which the money is sent and the private nature with which people can send and receive these funds means that it is a natural place for those people who are in countries that are politically sensitive.
It is also unfortunately quite ironic that those countries that are the most restrictive are the ones who are in dire need of proper NGO involvement in their social enterprises. There are already a number of examples of cryptocurrency driven NGO organisations.
One notable example is that of the Bithope Foundation. This is a NGO that is based in Bulgaria that only uses cryptocurrency to finance its operations. It is also the only full crypto NGO that is in compliance with Article 33 of the law on nonprofit legal entities. It claims that because cryptocurrency was created with legal intellect it should be used to help people.
BitGo is a similar organization to the International Justice Project (IGP). They aim to help raise funding for smaller charities especially for smaller NGOs that do not have the facilities to properly raise the funds.
BitGo is more about raising financing from smaller investors possible. It is a lot easier to receive a pseudo anonymous donation quickly through cryptocurrencies than to have to do micro financing from people. One could think of BitGo as a large church whereas instead of placing a small donation in the community bowl, you can send a small amount of cryptocurrency.
For example, for the first time people can send less than one dollar to an organization to a foundation that is nearly halfway across the planet. They can also check exactly how much a particular foundation is receiving. This creates transparency to where the funds are going.
BitGo also wants to make sure that there is no uncertainty as to where the Bitcoin will be spent. Therefore, they take the time to do all the proper due diligence and verify all of the NGOs that are looking to receive financing. This includes information such as their governing structure and legal status.
Once they have fully vetted the NGO, they allow them to raise financing on their platform and website. They will sign a contract that establishes the official legal structure. Once they have completed the fundraising, they have to provide BitGo with information about where they have spent the funds.
Once this has been sent to BitGo, the documents are then scanned and are uploaded to the financing page on their website so that the individuals who have donated can see where the funds have been spent. On these pages, those who funded can see what was converted, how much went to the project and how much was converted into fiat.
Future Plans for Cryptocurrency Funding
BitGo is certain that the more people that see the benefits of Bitcoin crowd funding, they will have a host of other startups NPOs and NGOs that will try and raise financing through these means. This change in perceptions away from the Dark Web towards charitable organizations will help to improve the reputation of the crytpocurrency.
Once more of the NPOs and NGOs star to see how easy it is to raise funds through these means, they are confident that more and more will eventually get involved and reach out to them. They will also see that as more people who are using the Bitcoin network will mean that more anonymous donations will be made.
One of the reasons that Bitcoin donations is bound to be an attractive alternative for those that are funding is because it is completely transparent and those that are considering a donation are more likely to support a project where they can see where the funds are going.
How IJP will Transform Cryptocurrencies for NGOs
Much like BitGo, IGP project wants to be a way for NGOs and NPOs to raise digital funds. We want to be just as transparent and allow people the opportunity to donate to the most deserving projects.
The IJP wants to also be a portal that will help those NGOs that have raised funds through Bitcoin and other cryptocurrencies about how to manage them. We will help the NGOs with important decisions around what they should be holding and which ones they should liquidate.
Together with the IJP, our portfolio of NPOs will have access to not only the best platform for raising micro financing but also have the latest information and advice about how they should apportion their funds and invest them. If you would like the assistance of IJP, you can get in touch here.