While it might all sound a bit sci-fi, experts are predicting big things in the future of fundraising.
In the future washing machines could raise money for your charity.
No, honestly they could.
A paper published today examining the implications of virtual currencies on charitable giving by the Charities Aid Foundation (CAF) has explained how everyday appliances such as washing machines, fridges or kettles could play a significant role in the future of charity fundraising.
While a world in which washing machines may play a key role in charitable giving may seem like science fiction to some, many of these technologies already exist
Essentially how it would work is the owners of modern ‘smart’ appliances (appliances connected online) would be paid to allow some of their built in computer's processing power to perform online calculations for something known as the ‘Blockchain’.
The Blockchain is a shared, decentralised public record which makes virtual currencies like Bitcoin possible by providing a record of all transactions and determining who owns what at any given time.
It is owned and maintained by all users of the system, who contribute some of their computers’ processing power to perform calculations, thus doing away with the need for expensive third parties when making transactions.
As greater numbers of appliances become ‘smart’ – for example kettles already exist that can be set to boil using a mobile phone and fridges have been designed that automatically order more milk when you run out – it is envisaged that they could also become part of the blockchain, contributing their processing power in exchange for money – in a similar way in which someone who has solar panels on their house sells electricity back to the national grid.
The CAF report suggests technology exists so appliances are set up to suggest good causes to automatically support with the money they make.
Today’s Giving unchained: Philanthropy and the Blockchain report is believed to be the first to explore what the implications of virtual currencies may be for charitable giving.
It follows a CAF paper from earlier this year on cryptocurrency – Giving a Bit (Coin) – which set out how virtual currencies could be the answer to charity transparency as any user is able to view details of any transaction.
Rhodri Davies, author of the report and leader of the Giving Thought policy programme at CAF said: “While still very much in its infancy, this technology has the potential to revolutionise the way charities work.
“Banks and financial organisations are already actively exploring the very large potential of blockchain to change the way they do business, and overhaul how people and markets interact in future.
“Charities and non-profit organisations will need to be alive to the huge implications this may have for fundamentally changing the nature of social action too.
“While a world in which washing machines may play a key role in charitable giving may seem like science fiction to some, many of these technologies already exist.”
