Real-Time Donor Identity & Risk Screening

A cryptographically secure, self-sovereign identity (SSI) framework prevents bad actors from creating multiple fake donor profiles. Each identity is anchored to a verifiable credential, making fraud easily detectable.

• ROI Impact: Reduces fraud-related losses and chargebacks. For a large charity, preventing even a 2% fraud rate can save millions annually and protect the organization's reputation.

Every screening event and its result is recorded on an immutable ledger. This provides a permanent, tamper-proof record for regulators and auditors, turning compliance from a liability into a demonstrable strength.

• Business Value: Drastically reduces the cost and time of annual audits and regulatory examinations. Provides definitive proof of Know Your Donor (KYD) diligence.

Automation cuts manual review teams and associated overhead. Furthermore, a clear, blockchain-verified donor history reduces banking compliance fees and the risk of account holds or closures due to suspicious activity reports (SARs).

• Quantifiable Savings: Organizations report a 40-60% reduction in compliance operational expenses post-implementation, with faster transaction settlement times.

A modular blockchain architecture allows for easy updates to screening logic and rulesets (e.g., new sanctions). Compliance becomes a programmable layer, not a static policy document, enabling agile adaptation to global regulatory changes like the EU's AML package.

• Strategic Advantage: Ensures long-term compliance viability and protects against future regulatory fines.

The Pain Point: Every charity screens the same donor repeatedly, wasting $50-$150 per check and delaying funds.

The Blockchain Fix: A permissioned, shared identity ledger allows one verified, compliant identity to be reused across organizations.

• Example: A major donor to the Red Cross can be instantly cleared for a UNICEF donation, with audit trail intact.
• ROI: Reduce per-donor onboarding cost by 70-90% and cut processing time from days to minutes.

The Pain Point: Static, periodic screenings miss real-time sanctions list updates, exposing organizations to regulatory fines and reputational damage.

The Blockchain Fix: Smart contracts automatically flag transactions linked to newly sanctioned entities, providing continuous compliance.

• Example: If a donor entity is added to an OFAC list, all connected nonprofits are alerted before the next transaction.
• Business Value: Proactive risk mitigation, reduced liability, and a demonstrable audit trail for regulators.

The Pain Point: Sharing sensitive PII (Personally Identifiable Information) between organizations is risky and often violates data sovereignty laws like GDPR.

The Blockchain Fix: Use zero-knowledge proofs (ZKPs) to verify donor eligibility and compliance status without exposing raw data.

• Example: A charity can cryptographically prove a donor is not on a sanctions list, sharing only a 'proof of compliance'.
• ROI: Enable secure collaboration, maintain donor privacy, and ensure global regulatory adherence.

The Pain Point: Manual compilation of compliance documents for auditors is time-consuming, error-prone, and costly.

The Blockchain Fix: Every verification, screening, and transaction is immutably recorded, creating a single source of truth.

• Example: Generate a complete, tamper-proof history of a donor's compliance status across multiple organizations with a single query.
• Business Value: Slash audit preparation time by over 80%, reduce operational overhead, and provide irrefutable evidence for regulators.

The Pain Point: Cumbersome, repetitive screening frustrates donors, leading to abandonment and reduced giving.

The Blockchain Fix: A seamless, one-time verification creates a frictionless donor experience, encouraging repeat and larger gifts.

• Example: A verified 'Humanitarian Passport' allows donors to support crisis relief across multiple vetted NGOs instantly.
• ROI: Boost donor conversion and retention, directly increasing net funds raised while lowering acquisition costs.

The Pain Point: Foundations and corporate grantmakers struggle to ensure due diligence across hundreds of grantees, creating operational bottlenecks.

The Blockchain Fix: A standardized, shared ledger allows grantmakers to pre-verify recipient organizations and their major donors.

• Real-World Parallel: Similar to how SWIFT network standardized bank communications, this creates a common language for nonprofit compliance.
• Business Value: Accelerate grant disbursement cycles from months to weeks, reduce administrative overhead, and enhance oversight.

Donors demand proof of impact. Smart contracts can be programmed to release funds only when pre-defined, verifiable milestones are met (e.g., satellite imagery confirming school construction).

• Guaranteed Fund Use: Ensures restricted donations are used as intended, increasing donor confidence and repeat giving.
• Automated Reporting: Generates immutable, real-time reports for stakeholders, eliminating costly manual reconciliation.
• Case Study: The World Food Programme's "Building Blocks" project uses a private blockchain to distribute aid, cutting transaction costs by 98% and providing full transparency.