How can you ensure every penny you donate meets its purpose?
Big ticket donations from organizations like Apple, Bank of America, Michael Dell, Facebook and many more generous individuals are anticipated to bring some relief to the recent Hurricane and earthquake-hit areas in and around the Americas. However, a sizable portion of these large volume donations, charitable funds, global aid and disaster relief funds fall into the wrong hands or ‘go missing’ quite often. Many such instances of fund embezzlement, misappropriation and money laundering involving charitable funds were spotted across the globe.
For example, a 2015 report by CFA Institute shows how a New York based National Children’s Leukemia Foundation has been accused of being involved in a fraud of misusing the funds it collected for cancer research. The foundation raised $9.7 million from prospective donors, out of which only one percent was contributed towards fighting leukemia. The rest of the charitable funds have been misappropriated by the charity’s founder and the fundraising firms.
In another report published by the National Audit Office – UK, the number of cases amounting to Fraud involving UK foreign aid have quadrupled over the past five years. There has been a recent spike in fraud inquiries, with 475 cases in the nine months to December 2016, 11% more than the total for 2015/16. Fraud losses in 2015/16 amounted to £3.2m – just 0.03% of the department’s budget, the report said.
Tracking the donations and spending behavior
The need of the hour is to deploy a solution which can reduce leakages, give donors a better visibility and control over their donations. mFino’s Metacash set purpose and spending guidelines to every dollar, monitors expense and ensures the money reach the right destination.
With mFino Metacash, one can tie a specific purpose to every dollar by defining rules and controlling the spending. The Metacash engine imposes pre-defined rules once the payment gets initiated. mFino Metacash is tailored to generate payments for consumers, enterprises, and governments. It controls many aspects much more than just payment security which includes setting business rules, redemption restrictions, budgets, bulk purchasing discounts and automatic reconciliation. It also tokenizes any payment instrument like cards, E-money, vouchers, Linked Bank Accounts, Cash, along with the facility of a comprehensive audit trail.
Additionally, the need for physical verification of bills by beneficiaries is not required anymore as mFino Metacash enables real-time tracking of spending behavior. The platform allows users to receive online or periodic reports to track the spending patterns. And so, governments, NGOs, Donors, Global Aid contributors can guide every dollar to its right destination and ensure their proper use.