What will make a better society in the future? The corporations will not be able to do so because they are only profit-driven. The government will not be able to do so because they will always be politically motivated. Only philanthropy’s organizations may be able to push society to a better future.
Why philanthropy is important
Philanthropy is giving away. But more importantly, philanthropy provided an alternative way that governments and corporations neglected and to find a solution to help society become a better place. It is a way to help neglect groups of people and support them to achieve their social goals.
Philanthropy under the fiat system
Philanthropy is a tricky business because by giving away such funds, you want to achieve social goods. However, you compete with the government with regulations favoring the government itself. You then need to go through compliance stages and spend time with the regulators to come up with the right strategy. Along the way, you waste many times and costs that are supposed to give away to help society.
Philanthropy under cryptocurrency
Cryptocurrency is the fastest way to send funds directly to organizations that need help and can keep both parties anonymous. It prevents funds from being stolen from transactions and provides a direct channel for both sides to secure payment.
Philanthropy under Web3
Web3 is a decentralized internet that no one controls data by the Web3 owner does. There is no way to cancel, shut down or sell data from the website. It is a perfect place for philanthropy to start and manage their funds. With smart contracts embedded, funds can be released from meeting smart contract requirements which makes donations more fairly distributed.
Future of crypto donations
There are more and more crypto donations coming and outbid fiat donations. Crypto can preserve value and holding donations can potentially gain more interest. Crypto donations can have programming money tailored down to its usage and make better spending from decentralized technology.
In conclusion
Crypto philanthropy can eliminate bureaucratic processes and cut costs of donations. It can potentially gain interest by holding funds and it can distribute fairly through programming smart contracts.
I can certainly say I think it is a noble idea. But I think a lot of people get lost a bit in what really happens with these charities, and at the same time dismiss the much bigger contribution to the world that for for-profit companies provide.
For example, for-profit companies often sponsor MANY charities and charitable causes. On top of that they provide goods and services that everyone needs, including poor people. And they provide much needed jobs that benefits almost everyone.
The non-profits are actually not not-for-profit. At least, not for tax purposes. What many people do not realize is that all not for profit means is that any money that comes in must be spent. But guess what, you CAN spend the money on the paycheck of the CEO and other administrators within the organization, and often times that is what they do. On top of that, they tend to partner with businesses of friends and family that can supply certain things to their operation like office supplies, janitorial services, vehicle fleets and repairs and so on and so forth.
In reality most charities do not put the bulk of the funds they receive into actual charity. It goes into running the charity, including lining the pockets of those who run the place.
In the United States, charities are required to disclose where the money goes. And when you start to dig in deep, the sad reality is that little of the money goes to actual charity.