Saving Charity (4/6): Big Charity
Today, corporate donation rules and taxation rules that facilitate and incentivise the establishment of non-profit entities have engendered the rise of a plethora of charities, funds and more which provide convenient ways to engage in the act of giving.
Many nations have put into laws the requirements that bind charitable organisations to the provision of the services they purport to deliver and which limit the number of received donations which can be spent on the administration of the organisation, however the rules often don’t have any teeth and only state that any money disbursed from the charity must be spent on its founding purpose, without defining a percentage rule or guidelines on the amount which may be spent on the administration of that charity.
Thankfully, for the most part, charities do the best they can, and in most cases where they need to hire staff to operate work, there are genuine efforts to limit cost. Sadly, there are many examples of egregious salaries being paid to fund administrators and of terrific amounts being spent on lavish events to supposedly raise further funds, with the most egregious examples seeing less than 1% of the money raised going to their intended purpose.
In today’s world, it is not uncommon for highly paid executives to end their careers as charity administrators, a job which often comes with a pay packet as prestigious as the charity that it represents, begging the question from donors: Are our funds being used well? It is here that the use of the BitcoinSV Public Ledger to manage funds, create audit trails and transparency and provide open visibility to the actions being taken by funds will generate new confidence in these organisations and give donors a much clearer window into the change that individual contributions create for the beneficiaries of their giving.
With Bitcoin, it becomes possible to design a charity in such a way that it does not know from whom it receives donations, but where donors can track their own contributions for the purposes of taxation and audit. The inbound funds may come from many sources, some as micropayments and some as estate level donations. Money can be raised from events, retail efforts and more, but in all cases, anybody whos money is directed into a fund would be able to see exactly where that money and all other money going into the fund ends up.
Now that everyone can see how the funds are disbursed, it becomes much easier for donors to determine whether the actions of the fund are in line with their own expectations, allowing people to make better choices for themselves.
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About Brendan Lee, Head of Technology
Mr. Lee's career to date has been focused on increasingly senior roles within industrial design, automation, and control, focusing on software design and implementation. Most recently, Mr. Lee was the Bitcoin Engineer Lead for Tokenized Group Pty Ltd, a company responsible for the Bitcoin Tokenized protocol, which is a comprehensive, regulation-friendly solution for businesses to create tokens for real-world assets on the BSV blockchain.
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