Non-Governmental Organization Funding with Blockchain

Although a relationship between NGOs and their donors is based more on trust, donors would expect N GOs to demonstrate legitimacy and accountability this time. Transparency is at the core of building such confidence, and recent technological innovation advances, specifically blockchain, reveal new possibilities for greater accountability in the NGO sector. Blockchain is a trust less system that can confirm transactions on its own without the assistance of an external party, thus building trust between NGOs and donors. There are various major domains related to the application of blockchain in the N GO sector. Many research gaps exist regarding effective knowledge of blockchain compared to other approaches that validate its effectiveness in promoting transparency and accountability. Research has shown that blockchain technology has a high-efficiency level of about 95% in increasing the reliability of donation-tracing mechanisms. However, almost 90% of non-governmental organizations (NGOs) are reluctant to adopt such innovations. The most significant technologies driving such innovations include blockchain, smart contracts, decentralized applications (DApps), distributed ledger technology (DLT), and data analytics, which all playa vital role in increasing transparency in donation systems. While blockchain has tremendous potential to transform the way NGOs engage with donors, organizations are faced with severe challenges in its application. Such challenges tend to come from change resistance and the difficulty in adopting and maintaining new technologies. The need to carry out comprehensive research to overcome such challenges and investigate how blockchain can increase transparency and accountability in N GO operations remains the number one priority.