Transparency with how charitable organizations spend their income is a point of concern for people who donate to these organizations.
Only slightly more than a third (38%) of philanthropic income is spent on the cause, according to CharityComms.org, with the majority of charitable income going to fundraising and administration.
FoodChain Global, or FCG, has launched a database-free, decentralized staking solution with a fully traceable weekly raffle.
FCG is a blockchain ecosystem focused on addressing global hunger through NFTs, P2E games, staking, and unique products.
10% of the prize pool is donated to charity, allowing the company to feed those in need while also rewarding its users.
According to the World Food Programme, more than 811 million people lack sufficient food, with 45 million at risk of hunger. The United Nations has pledged to solve world hunger by 2030, but the problem still persists.
While charities aid in the mitigation of the problem, the general people must have faith that charitable gifts are going to the correct places.
Fewer than one-fifth of Americans feel they have a high level of trust in charity, indicating a general suspicion of charitable groups.
Early in 2018, stories of aid workers' wrongdoing in Haiti and elsewhere shook public confidence in the work of development charities and NGOs.
The decline in trust was documented in two different reports:
- Trust in Charities and the Overseas Development Sector by nfpResearch
- Trust in Charities by Populus and the Charity Commission
These issues also attracted the attention of Baroness Stowell, Chair of the Charity Commission, who stated that "people now trust charities no more than they trust the average stranger they meet on the street."
Salaries are undoubtedly one of the largest elephants in the room; similar to businesses, charity CEOs often take home larger pay packages than government leaders, prompting the question "why?"
When taxpayer money is squandered on meaningless ceremonies or large Covid-19 contracts that fail to deliver, the public is outraged, and it is also apparent that when their donations are used to pay for excessive salaries, the public is outraged (even if not all of the sector are that ludicrous).
Despite the effort they perform to restructure these organizations, extreme vigilance must be exercised in order to avoid overpaying CEOs.
In the view of many, a six-figure income in a non-profit organization seems unjustifiable.
Despite this, the sector's largest flaws are undoubtedly inefficient strategy and inept management.
Charities and non-governmental organizations (NGOs) are often scrutinized and chastised for inefficient spending: aggressive fundraising strategies, bad administration, and a lack of transparency are all major sources of public concern.
Being overly aggressive in fundraising has earned the public's scorn time and time again; it's one of the top reasons why people dislike donating to charity, and it's caused enormous misery in some already committed donors.
Potential contributors are likewise concerned about poor administration and ineffective philanthropic initiatives.
There's the question of why well-known, long-standing charities haven't succeeded in solving the problem they set out to solve, and it's a complicated, but reasonable argument.
Non-profits have been fighting internal battles to fix these issues in order to gain public trust, and they are admitting their flaws; the answers just need to come faster.
FCG addresses this problem by increasing the transparency of charitable donations through staking, increasing liquidity, and advancing FCG's objective of ending world hunger.
To ensure maximum success, 10% of the weekly raffle proceeds will be contributed to the cause.
Unlike many platforms that stake their tokens on centralized exchanges, FCG's staking platform is decentralized, allowing token holders to earn interest on their wallets without the fear of government intervention.
Actions are automated and secured directly on the blockchain through decentralized, non-custodial staking, which is built purely on smart contracts.
In contrast to typical centralized or custodial staking solutions, which assume custody of user funds, FCG staking gives users self-control over their funds.
To combat inflation, FCG offers high-interest rates ranging from 10% to 20% depending on the locked-in duration. This comes as global inflation rates continue to grow, with 3.81 percent predicted for the remainder of 2022.
With the token contract built into the back end of its ecosystem, FCG doesn’t require a database and offers speedy transaction times.
FCG believes crypto projects should be built with the idea that the chain serves as a database.
This further backs the FCG motto to “make it make sense,” and minimizes unnecessary layers to oversee users’ funds and provide optimal security and trust.
Final Thoughts
Honesty and transparency are valued by the public. In order to regain people’s trust, it is past time for charities to be more open about their operations and plans for improvement.