For the past 15 years or so, the Internet as we know it, or Web 2.0, has empowered many nonprofit organizations and individuals to fundraise through crowdfunding. No one can dispute that lives have been impacted because donors and receivers are more easily connected through online platforms. However, is this model really the best that we can provide for idealists who want to do good for others? And, if it isn’t, how can we capitalize on Web 3.0, which will introduce decentralization and transparency?

At its heart, fundraising really involves just two “actors”: a problematic situation or someone in need and a person who wants to help. Empathetic people who are moved by the need to renovate a dilapidated school building or pay for a child’s medical bills lack the deep pockets to do so. Fundraising, then, is the only viable solution.

Here, however, is where Web 2.0 is failing idealists and problem solvers. A person who simply wants to help someone else should be able to do so freely. It is not, after all, a business transaction, just one person trying to ease another’s suffering. Yet, today’s online fundraising model – crowdfunding – is profiting off that desire to do good. 

Before we go further, let’s address a few points first. This is not a criticism of the people who manage today’s crowdfunding sites – they have facilitated many impactful fundraising campaigns and deserve credit for advancing the entire model. Even so, there are significant drawbacks for Web 2.0 fundraisers that limit their ability to be effective.

Commissions are a concern. Yes, you can fairly argue that anyone who runs a crowdfunding site has the right to charge them so long as they are disclosed up front. And, on the surface, 2.9% does not seem like a lot of money. That said, consider a campaign that generates $100,000: $2,900 of that goes to the platform. That is not an insignificant amount of money, and if it were given to the fundraiser in full, more good could be done.

That points to the real crux of the problem: there is a third actor in today’s fundraising. It is not simply a do-gooder plus someone in need – there is a middleman, one who charges commissions and is responsible for accepting and releasing funds. The question for all of us is whether we want to keep that middleman or see what can be accomplished without them. 

So, here we are at a potential solution: Web 3.0. A decentralized Internet is eliminating the need for that intermediary, creating more financial independence, and protecting human rights. What that means for fundraisers is that the mediator is gone, so platforms like UFANDAO are able to facilitate P2P (person-to-person) transactions that are secure, transparent, and in real time. Funds are not accumulated, nor are commissions imposed on transfers. That 2.9% is wiped out, resulting in 100% of the funds being received. There are also more fundraising methods available, a plus in our rapidly changing world, with UFANDAO allowing a digital, or crypto, wallet to be selected.

This transition to fundraising that is only between the giver and receiver might be the reset that fundraising has needed for quite a while. It may help connect more donors with the causes they are passionate about and lead to changed lives and problems solved.

Oleg Rodionov, the CEO of UFANDAO.com, says, “We believe that a decentralized way of fundraising will ultimately fulfill more dreams. Web 3.0 is making fundraising fair for everyone. We are excited about the possibilities that this will bring to our users as they set out with new fundraising tools to make the world a better place for us all.”