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In 2016, an estimated $500 billion was donated to non-profit institutions. Although the amount of money donated grows each year, the number of donors has been on a steady decrease for some years now. Donations are mostly made by older generations, as young generations find it difficult to trust and donate to charities. And their concerns are well based, as many charity institutions lack transparency and give only a small percentage of the money donated to actually impact the cause it was meant for. This is due to corruption, operational costs, and outsourcing, as many charity institutions rely on marketing specialists to grow their market share of donations.
What is Little Phil?
Little Phil is a platform that uses blockchain technology to radically transform charity while overcoming the problems previously stated. Little Phil will be able to improve the way donations work in many ways through the use of smart contracts and an immutable ledger. It will use Proof-of-Need, ensuring the authenticity of the receiver through biometric data and cryptographically secured Unique Digital Identities (UDID), and Proof-of-Impact, a transparent proof of the positive impact your donation had on the receiver.
How Does it Work
The Little Phil Coin (LPC) will reduce the costs of transferring money, as transferring fiat can be extremely expensive, especially international money transfers. It will also be able to reduce operational costs, as the platform will be able to perform tasks that will improve the efficiency of organizations.
Another way Little Phil is looking to change charity, or giving, is by changing fundraising methods. Studies show that younger generations are opposed to cold calling, door knocking and other outdated fundraising methods. By integrating technology and Proof-of-Impact, Little Phil makes it possible for users to donate from their mobile devices, choosing their benefactors for themselves and transparently track the direct impact of the donation. There will also be a social component, where receivers can show direct appreciation to the donors and social impact statistics are shared.
However, the most important contributions Little Phil’s blockchain solution has to offer is that it will be able to lower the costs of fundraising, thus offering a lower barrier of entry to charity institutions and channeling more money to help the cause, while at the same time ensuring the money is received and used for the cause it was intended to.
The Australian team behind Little Phil promises to provide a better giving experience, convenience, and gratification to donors. It is aimed to capture the attention of the younger generations with its social features. It will also be appealing to socially responsible organizations, as it can greatly facilitate and democratize the process of corporate giving. A simple and positive donor experience using up to date technologies, that can provide philanthropists with a deeper emotional connection with their chosen cause, Little Phil will start its fundraising for the public in Q4 of this year.