PayPal redirects charitable donations without consent
A New York Times article today made public a lawsuit claiming that PayPal has been redirecting charitable donations without consent. The article explains that PayPal has been offering customers the opportunity to donate to a vast number of charities using the GivingFund platform.
In December, when a donor checked to see if her donation had been received by the charity, it became apparent that the charity had never been notified of a gift. The donor looked further and fount that ten of the thirteen charities to which she had donated had never received the donations.
Where did the money go?
The question remained: where did the money go? PayPal had organized the charitable donation system such that a group would only receive the gift if they were registered with both PayPal and GivingFund; even if they did not fulfill these requirements, however, they still appeared as an option for donors.
PayPal allegedly reassigned funds to other organizations when the intended organization was no registered.
Should have been using Blockchain
Had PayPal been using Blockchain to redirect their charitable donations, this organizational disaster causing harm to donors, recipients, and PayPal’s integrity could have been avoided.
Smart Contracts could have been arranged between PayPal and the according organizations in order to facilitate, verify, execute, and enforce the performance of the agreements, rather than requiring organizations to register with both PayPal and GivingFund. Smart Contracts could have autonomously carried out the assignment of funds to organizations without the requirement of a third party.
Providing evidence effortless with Blockchain
In court, PayPal will face the challenge of having to provide evidence that they either indeed transferred funds to the intended organizations (unlikely given the accusations), or that they reallocated funds to other organizations.
If all transactions were saved in a Blockchain, the company could safely retrieve the necessary information retain their integrity. Unfortunately, this will likely not be the case.
Charity Chain for integrity
Additionally, faizod is working on a Blockchain solution to be used by charities themselves. Many charities suffer from public mistrust due to incidences exactly like this one. Charity Chain will be accessible to charities themselves to provide absolute transparency to donors, eliminating factors that discourage individuals from donating.
Blockchain solutions ensure that your company does not have to worry about organizational failures compromising your company’s integrity. To get in touch with faizod’s Blockchain experts and find out more about how you can integrate Blockchain in to your company’s existing structures, you can contact us here.