CHARITY BASED DONATION SYSTEM

USING BLOCKCHAIN

Tanmay Thakur1, Anish Anand2, Viaan Bindra3

1,2,3,
Department of Computer Science & Engineering, Vellore Institute of Technology, Chennai, India
E-mail: 1tanmay.thakur2021@vitstudent.ac.in , 2anish.anand2021@vitstudent.ac.in,
3
viaan.bindra2021@vitstudent.ac.in

Abstract— The landscape of charitable giving is undergoing address the shortcomings inherent in existing models. Our
a seismic shift. While traditional models have long served as proposed system leverages this transformative technology to
cornerstones of humanitarian efforts, they grapple with establish a secure and auditable ledger system specifically
persistent challenges related to transparency, accountability, tailored to track donations throughout their entire journey.
and efficiency. Donors often lack visibility into how their
This fosters unprecedented transparency, allowing donors to
contributions are utilized, fostering a climate of uncertainty and
hindering trust in charitable organizations. Centralized systems trace their contributions in real-time and gain unwavering
further exacerbate these issues, introducing vulnerabilities to confidence in their impact. The decentralized nature of
fraud and mismanagement. This project proposes a novel blockchain technology eliminates the need for a central
solution – a blockchain-powered platform for charity-based authority, reducing the risk of mismanagement and fraud. The
donations. By harnessing the transformative potential of this immutability of blockchain records ensures that once a
decentralized, immutable, and auditable ledger technology, we transaction is recorded, it cannot be altered or deleted,
aim to revolutionize the philanthropic sector. Our proposed providing a reliable audit trail. This level of transparency and
system fosters a paradigm shift in charitable giving, security is unparalleled in traditional donation systems,
empowering donors with unprecedented transparency and
marking a significant advancement in the field of charitable
control over their contributions.
giving. By harnessing the power of blockchain technology,
Keywords— charitable giving,transparency, donors, fraud we aim to maximize the impact of charitable giving, ensuring
that donations reach their intended recipients and are used
I. INTRODUCTION effectively.

Charitable giving has long served as a beacon of hope,  The current models for charitable giving are opaque
fostering social progress and alleviating suffering throughout and centralized, leading to distrust and potential
history. It has been a cornerstone of humanitarian efforts, fraud.
providing much-needed aid to those in need. However, the  The proposed solution is a blockchain-powered
prevailing models for charitable giving are increasingly platform designed to revolutionize charity-based
strained in the modern era. A significant issue is the opacity donations.
in donation utilization, which fosters a climate of distrust  Blockchain technology’s core tenets of
between donors and charitable organizations. Donors, who decentralization, immutability, and transparency
generously contribute their resources, yearn for a deeper address the shortcomings of existing models.
understanding of how their contributions are utilized. They  The proposed system allows for a secure and
want to ensure that their donations are making a real impact auditable ledger system to track donations, fostering
and are not being misused or misallocated. On the other hand, unprecedented transparency.
charities struggle to maintain transparency under intensifying
 Donors can trace their contributions in real-time,
scrutiny from the public and regulatory bodies. Furthermore,
gaining confidence in their impact.
the centralized nature of traditional donation processes
creates vulnerabilities to mismanagement and fraud. These
fundamental challenges impede the effectiveness of The core functionalities of our proposed system revolve
charitable giving, hindering the flow of vital resources around the principles of blockchain technology. At its heart,
towards those in need. The need for a solution that addresses the system is designed to facilitate the donation process,
these issues is more pressing than ever. making it as seamless and user-friendly as possible. Donors
can easily make donations to their chosen charities through
the platform. Once a donation is made, it is recorded on the
This project presents a groundbreaking solution – a
blockchain, creating a permanent, unalterable record of the
blockchain-powered platform specifically designed to
transaction. This record includes details such as the amount
revolutionize charity-based donations. Blockchain
of the donation, the date and time of the transaction, and the
technology, with its core tenets of decentralization,
recipient charity. This information is publicly available,
immutability, and transparency, offers a powerful tool to
allowing anyone to verify the transaction. This level of
transparency is unprecedented in traditional charitable giving sense of community and shared purpose. By leveraging the
models, where donors often have little insight into how their power of blockchain technology, our proposed system not
donations are used. only addresses the challenges inherent in traditional
charitable giving models but also opens up new possibilities
In addition to facilitating donations, our proposed system also for enhancing the effectiveness and impact of charitable
offers a range of tools and features designed to enhance the giving.
overall experience for both donors and charities. For instance,
charities can use the platform to provide updates on their II. LITERATURE SURVEY
projects, giving donors a real-time view of how their
This section provides a detailed examination
donations are making a difference. Donors, on the other hand,
of the existing solutions designed to achieve specific
can use these updates to gain a deeper understanding of the
objectives. The results and findings of research conducted
impact of their contributions. They can also interact with
by various scholars is been displayed in Table 1.
charities and other donors through the platform, fostering a

Table 1: Existing Systems

Features Used Pros Cons

Smart contracts, tokenomics, Enhanced transparency, automated Scalability challenges, regulatory
transparency donations uncertainties

Smart contracts, peer-to-peer Lower transaction costs, global Adoption barriers, volatility in token
transactions accessibility values

Distributed ledger, traceable Reduced fraud, increased donor trust Complexity for non-tech-savvy
donations charities

Utility tokens, gamification Incentivized participation, broader reach Token value fluctuations, regulatory
elements scrutiny

Smart contracts, supply chain Efficient aid distribution, accountability Integration challenges with traditional
tracking systems

III. PROBLEMS IN CURRENTLY USED BLOCKCHAIN BASED

The literature on the use of blockchain technology for charity CHARITY DONATION SYSTEM
reveals a growing interest in leveraging this technology to Blockchain technology has been increasingly adopted in the
enhance transparency, efficiency, and trust in charitable charity sector due to its potential to enhance transparency,
giving. Studies such as “Managing charity 4.0 with efficiency, and trust. However, several challenges and issues
Blockchain” and “Blockchain for Charity: Trust-Related persist in the currently used blockchain-based charity
Affordances in the Charity Sector” highlight the potential of systems. Here are some key points:
blockchain to revolutionize the charity sector by addressing
1. Technical Complexity and Misunderstanding:
key challenges such as opacity in donation utilization and
Blockchain technology is complex and often
vulnerabilities to mismanagement and fraud. However, these
misunderstood. This complexity can deter charities from
studies also note potential hurdles, including the complexity
adopting blockchain solutions. There is a general lack of
of the technology and legal and ethical considerations. Despite
understanding of the technology, which can lead to critical
these challenges, the consensus in the literature is that
issues during the launch and development of blockchain
blockchain holds significant promise for transforming
initiatives.
charitable giving, offering a more transparent, efficient, and
2. Anonymity and Transparency: While blockchain
secure model for managing donations. This literature review
technology provides a transparent and immutable
underscores the need for continued research and innovation in
record of transactions, it also allows users to
this area to fully realize the potential of blockchain technology
remain anonymous. This anonymity can make it
in the charity sector.
difficult to expose transactions and provide full
transparency from sponsors to beneficiaries.
 3. Scalability Issues: Blockchain technology faces 7. Peer-to-Peer Fundraising: Blockchain can
scalability issues due to the fixed size of the block facilitate peer-to-peer fundraising campaigns,
for storing information. As the number of allowing individuals to raise funds directly from
transactions increases, the blockchain can become their network.
slower and less efficient.
4. Legal and Ethical Considerations: There can be 8. Cryptocurrency Donations: Many blockchain-
significant legal and ethical hurdles when using based charity systems allow for donations in the
blockchain for charity. These include issues form of cryptocurrencies, opening up new
related to data privacy, fund integrity, and avenues for charitable giving.
donation control. 9. Global Philanthropy: Blockchain can enable
5. Volatility of Cryptocurrencies: Many blockchain- global philanthropy by making it easier to send
based charity systems use cryptocurrencies for donations across borders2.
transactions.However, the value of
cryptocurrencies can be highly volatile, which can 10. Integration with Other Technologies:
impact the value of donations. Blockchain can be integrated with other
6. Lack of Standardization: There is a lack of technologies, such as artificial intelligence and
standardization in blockchain technology, which can data analytics, to further enhance the
lead to interoperability issues between different effectiveness of charitable giving
blockchain platforms.
7. Energy Consumption: Blockchain technology, V. METHODOLOGY
particularly proof-of-work blockchain networks, Planning and Design: The first step in the methodology
can consume a significant amount of energy, involves planning and designing the system. This includes
which raises environmental concerns identifying the key requirements of the system, such as the
need for transparency, security, and efficiency. The design
IV. APPLICATIONS OF HAND GESTURE phase also involves choosing the appropriate blockchain
RECOGINITION SYSTEM technology (public, private, or consortium) and deciding on
Some key applications of blockchain-based charity donation the consensus mechanism (Proof of Work, Proof of Stake,
systems: etc.) to be used. It’s also important to consider the user
interface and experience, ensuring that the system is user-
friendly and accessible to both donors and charities.
1. Transparent Donation Tracking: Blockchain Development and Testing: The next step is the development
technology allows for the creation of a of the system. This involves writing the code for the
transparent and immutable record of all blockchain and developing the smart contracts that will
donations made1. This enables donors to track automate the donation process. The development phase also
exactly where their donations go and when they includes the creation of a user interface for donors and
charities to interact with the system. Once the system has been
are put into use.
developed, it’s crucial to thoroughly test it to identify and fix
2. Efficient Cash Transfers: Blockchain can any bugs or issues. This includes testing the functionality of
facilitate efficient cash transfers, reducing the the smart contracts, the security of the system, and the user
time and cost associated with traditional banking experience.
systems3. Deployment and Maintenance: The final step is the
deployment of the system. This involves launching the system
3. Results-Based Financing: Blockchain can be
and making it available for donors and charities to use. Once
used to implement results-based financing
the system is live, it’s important to monitor its performance
models, where funds are disbursed only when
and resolve any issues that arise. This includes maintaining the
certain predefined outcomes are achieved3.
security of the system, updating the smart contracts as needed,
4. Increased Accountability: The transparency and making any necessary improvements to the user interface
provided by blockchain increases accountability or user experience. Regular audits of the system can help
for both donors and charitable organizations1. ensure that it continues to operate securely and effectively.
This can help ensure that donations are used for Evaluation and Improvement: After the deployment of the
their intended purposes1. system, it’s crucial to continuously evaluate its performance
5. Reduced Fraud: The decentralized and tamper- and impact. This involves collecting and analyzing data on
proof nature of blockchain can help reduce fraud various metrics, such as the number of donations made, the
in charitable giving1. amount of funds raised, and the level of transparency
achieved. User feedback should also be gathered to
6. Automated Processes: The use of smart contracts understand the user experience and identify areas for
in blockchain can automate various processes, improvement. Based on this evaluation, necessary
such as the disbursement of funds, further improvements and enhancements can be made to the system.
increasing efficiency1. This could include updating the smart contracts, improving
the user interface, or adding new features. This continuous
cycle of evaluation and improvement ensures that the system
remains effective and continues to meet the needs of both incorporate relevant advancements into the system. This will
donors and charities. It’s also important to stay updated with ensure that the system remains at the forefront of
the latest developments in blockchain technology and technological innovation in the charity sector.

Fig. 1: System Architecture Diagram

VI. RESULTS AND DISCUSSIONS

Blockchain technology has the potential to revolutionize the

charity sector by enhancing transparency, efficiency, and
trust in the donation process. By creating a decentralized
and immutable record of all transactions, donors can track
their contributions in real-time, fostering a greater sense of
trust and engagement. However, challenges such as
technical complexity, scalability issues, and legal
considerations need to be addressed to fully realize the
potential of blockchain in charitable giving. With continued
research and development, blockchain technology could
transform the way we give, ensuring that donations have the
greatest possible impact on those in need. Fig. 1: Login Page

1. The login page of a blockchain-based charity donation

system serves as the secure entry point for users, 2. The dashboard in a blockchain-based charity donation
ensuring only authorized individuals can access their system provides a user-friendly interface where donors
accounts. It typically features fields for entering can track their donations in real-time. It typically
username and password, and may also include displays key information such as the total amount
additional security measures such as two-factor donated, the projects funded, and the impact of their
authentication to enhance the security of user data. contributions, fostering transparency and trust.
 5. Featured donations in a blockchain-based charity
system highlight specific causes or projects that are in
urgent need of funds or align with the platform’s
mission. This feature allows donors to quickly identify
and contribute to impactful causes, thereby
maximizing the effectiveness of their donations.

Fig. 2: Dashboard

3. Adding a new wallet in a blockchain-based charity

system allows users to manage their cryptocurrency
assets within the platform. This feature typically
includes security measures such as private keys and
seed phrases to ensure the safety and integrity of the
user’s funds. Fig. 5: Featured Donations

VII. CONCLUSION
In conclusion, blockchain technology has the potential to
revolutionize the charity sector by enhancing transparency,
efficiency, and trust in the donation process. From the secure
entry point of the login page to the user-friendly dashboard,
the addition of new wallets, and the process of making
donations, every aspect is designed to provide a seamless and
secure user experience. Features such as featured donations
further enhance the effectiveness of charitable giving.
However, like any technology, it’s not without its challenges.
Technical complexity, scalability issues, and legal
considerations are some of the hurdles that need to be
Fig. 3: Adding New Wallet addressed. Despite these challenges, with continued research
and development, blockchain technology could transform the
4. Donating in a blockchain-based charity system is a way we give, ensuring that donations have the greatest
straightforward and secure process, allowing users to possible impact on those in need. It’s an exciting time for the
contribute to their chosen causes using cryptocurrency. intersection of technology and philanthropy, and the future
The system records each donation on the blockchain, holds immense possibilities.
providing a transparent and immutable record that
donors can use to track the impact of their
contributions. VIII. REFERENCES

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