Abstract

The charity sector is trust-intensive as its performance depends on people’s willingness to donate and their confidence that donations will be used appropriately. However, recurring scandals continue to erode public trust. Charities are, therefore, increasingly turning to new technologies such as blockchain to increase accountability and the transparency of donation use and allocation. While studies either develop concepts for the design of blockchain-based donation systems or examine the effects on donors’ behavior, this paper focuses on emerging opportunities for charities. Using a systemic review, three types of blockchain uses, their interplay in the charity sector, and seven affordances are presented that enable charities to build trust through, among others, increased accountability and automated governance. We thereby contribute to a deeper understanding of the impact of blockchain on the charity sector by highlighting the action potential of actors in the sector and its effect on trust on the donors’ side.

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