Blockchain-Enabled Charity Donation System for Transparency and Trust

Abstract

Traditional philanthropic frameworks often struggle with financial opacity and a relianceon centralized intermediaries, which frequently leads to an erosion of donor trust andsystemic mismanagement. This paper proposes a Decentralized Charity Fund ManagementSystem that mitigates these risks by encoding the complete donation lifecycle withinEthereum smart contracts, ensuring transparency and accountability by design. Utilizing agovernance model inspired by Decentralized Autonomous Organizations (DAOs), thesystem grants donors proportional voting rights based on their contributions, empoweringthem to collectively oversee fund disbursement. Capital is released to campaign organizersonly after a majority of donors approve specific withdrawal proposals, which must besupported by cryptographic expenditure proofs hosted on the InterPlanetary File System(IPFS). Additionally, the system features an autonomous refund mechanism that activatesif a campaign fails to reach its financial target by a set deadline, allowing for the directreclamation of funds without central intervention. Implementation via a React-baseddecentralized application (DApp) and validation through Hardhat-based testing confirmthat this frameowrk enforces all governance rules deterministically, effectively eliminatingthe need for centralized authority in the charitable ecosystem.