Collab19: Shifting the Philanthropic Paradigm
While COVID-19 has posed challenges to us all, people are collaborating at unprecedented levels in human history. Communities are being formed across the globe to strive towards common goals. Remote communication has been enabled through innovations in technology with companies such as Zoom leading the charge. Beyond just school and work, new technology has been extremely important in finding new ways to help others.
Another major step that must be taken to ensure we are optimally helping people in need is re-envisioning the age-old concept of philanthropy, which today works in a black box.
There are two main issues with the current model of philanthropy:
Trust
In January of 2020, the Chronicle of Philanthropy warned of the non-profits industry’s trust crisis. Only 52% of Americans trust nonprofits to do the right thing.
If there was a way for donors to be more involved in the giving process in a democratic and easy way, trust in the philanthropic process would skyrocket.
Inefficiency
The Better Business Bureau outlines that nonprofits should spend no more than 35% of all funds on overhead (which is extremely high in itself). However, it was found that 75–85% of nonprofits improperly allocate their expenses, spending exceedingly high amounts on overhead.
Generous people’s hard-earned money is not going where it is intended. Imagine the equity, prosperity, and all the good that would come if 100% of donations went to their intended place.
A New Approach
Fortunately, there is a new structure of giving that has the opportunity to solve both of these crippling issues in one fell swoop: the DAO.
A DAO (Decentralized Autonomous Organization) enables people to interact in a community-setting mirroring the purest form of democracy without a centralized governing body. Rather, a DAO is governed by rules set by the community and is rooted in blockchain technology utilizing Ethereum as a means of exchange. DAOs enable people to coordinate collective resources in a transparent way.
Built on top of Ethereum to fight COVID-19, Collab19 is a groundbreaking DAO and International Democratic Relief Fund that will completely innovate the ways philanthropy is approached.
The project aims to create a better paradigm for fundraising and distribution by combining:
To enter the Collab19 community, you must simply:
- Onboard via the Collab_19 bot interface.
- Donate any amount of money via Ether (ETH) to the fund.
Collab19 accepts grant requests via Discourse for COVID-19 relief. Then, the community votes on how the funds will be used. We ensure fairness by giving each person an equal vote, regardless of donation amount.
This system solves both problems with current philanthropic structures as people can trust the community to make the “right decision” rather than a bureaucratic and potentially politically charged governing body. Secondly, with a DAO there is absolutely no overhead! 100% of all donations will go into the hands they were intended.
Check out a video summary of Collab19!
An Exciting Experiment
DAO’s have the potential to revolutionize the ways that people give to worthy causes they are passionate about. Donors will love the opportunity to engage with people of identical philanthropic interests as well as having a say on exactly how the funds are spent.
I am new to the Web3 world myself, and I completely understand still being skeptical about this new model of charitable giving. However, I encourage you to give this exciting opportunity a chance. You don’t even need to start with a huge donation (in fact, it is recommended to start by donating just $5!). Donate, join the community, and you will begin to see how this model of philanthropy will quickly change the model of fundraising and charitable giving for the better.
COVID-19 has altered nearly every aspect of human life. This is the perfect time to engage with the future of the web as well as do your part to support people in need.
Link to join Collab19: https://t.me/collab19_bot
Thanks to James Duncan.
