💟#CardanoGives - A Global Donations Campaign - A Framework
A common vision and mission, helping our Cardano-based non-profit organizations globally.
Project Description
The definition, implementation and first execution of a framework for recurring global donation campaigns.
The respective fundraising campaigns are carried out worldwide and have different beneficiaries each time. The beneficiaries are determined in an open voting process involving the members of the #CardanoCommunity.
Project Justification
Several communities are focusing on their internal goals and on the fulfilment of commitments from the Catalyst proposals. This is in principle good and important, however, a common element (e.g. project or initiative) which creates a global identification with the Cardano core values (i.e. decentralization, fair, freedom, banking-the-unbanked) is lacking.
This is due to timezone differences, language barriers and simply the fact, that the members of the regional communities do not know their peers in other regions.
Project Scope and Main Objectives
Goal Nr. 1. By end of 2023, have a clear process definition for the planning, execution and documentation of the donations campaign.
Goal Nr. 2. By end of 2023, have executed a first pilot multiSig donations campaign in a simplied manner - e.g. 5 out of 5 TCM sign the outgoing donations.
Goal Nr. 3. By end of 01.2024 have conducted a Lessons Learned workshop with key stakeholders and applied adaptations to the process for the next iteration.
Goal Nr. 3 By end of 02.2024, have a clear roadmap for the next iteration of the donations campaign.
Goal Nr. 4. By end of 02.2024, have collected at least 500 ADA as a donation for each participating beneficiary.
Scope
The process specification and the first execution is in scope of this project.
Subsequent planning and execution is not in scope, since the idea is, that any member of the Cardano Community can use this framework to plan and execute a similar multiSig-secured donations campaign.
Stakeholders
Customer of this initiative is the broader #CardanoCommunity
Advocates/Supporters are
Regional Cardano Communities (aka Town Halls)
African Cardano Community (ACC) - confirmed by Daniel and Richmond
Eastern Cardano Community (EACC) - confirmed by Yan
European Cardano Community (ECC) - confirmed
LATAM Cardano Community (LCC) - confirmed by Alejandro Pestchanker
Middle East and North Africa Community (MENA) - confirmed by Juana Attieh
Pacific Town Hall (SANADA) - confirmed by Nori Nishigaya
Japanese Community - TBC
Stake Pool Operators (SPO) willing to support the initiative - Define criteria
Key Influencers (e.g. elliot(aka UnpopularEL)
MeetUp Cardano Groups (explore this!) https://x.com/CatalystSwarm/status/1719800848652423585?s=20
Trusted Community Members (TCM) are selected (
Nnumber) of Cardano community members (e.g. YouTubers, Cardano Ambassadors) who will sign the donation transactions. For the first iteration, the following TCM have been identified:@astroboysoup - Pete Bui from the Learn Cardano Podcast in Australia - confirmed
@LucasMacchia2 - Lucas Macchiavelli, Cardano Ambassador in Argentina - confirmed
@padierfind - Patrick Tobler, Entrepreneur in Switzerland - confirmed
@SoorajKSaju - Sooraj - author and influencer in Germany - confirmed
mie.tran.0407 - Mie Tran (Eastern Townhall) - confirmed
ibr - Izzat-Begum B. Rajan - confirmed
https://twitter.com/AlexDamsker - "Is This Even Legal?" | Startup and finance lawyer | Explaining law, facts, and investing in stocks, bonds, crypto | Former SEC | 2X Founder - based in the USA, - confirmed
Sponsors are as many projects and initiatives which will support in spreading the word about the donations campaigns and contribute to the campaign with ADA donations and/or other digital assets (e.g. fungible tokens, NFT)
Beneficiaries are without exception registered non-profit organisations, which fulfill certain criteria. (to be discussed and elaborated)
Experts regarding Impact and NGO -
Raz Samsudin - confirmed
Simon Sällstrom - founder DirectEd Development Foundation - confirmed
Pending: Cole Bartlett, Dr. Michaela Ulieru --> to be contacted
Signature Procedure
5 out of 7 Trustees must sign the multiSig outgoing transactions.
Coordination Role
The goal is to rotate the coordination role for the donation campaigns. The ECC, EACC, ACC and LCC, MENA, Sanada will moderate the activities.
In the initial stage, the ECC will take over the project management role for the process creation and first pilot execution.
Process and Main Requirements
First Ideas
For every x ADA received, an additional beneficiary to be added. This is to ensure that each beneficiary receives at least xADA per campaign (discuss).
Idea: Depending on the collected ADA amount, define thresholds how many beneficiaries receive funding. E.g. Collected Amount up to `x` ADA --> One project received the funding, above that amount, the donations are split in equal percentage for `n` beneficiaries.
Idea: Sponsoring projects create a fungible token (e.g. 100(?) copies) commemorating the respective MultiSig-secured donations campaign. All FT have a common element (e.g. logo of the campaign)
Idea: The top x donors (by value or the first x) get a full set of FT from all different contributing projects.
A simplified process flow is as follows:
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Details on the implementation using MultiSig and NFT as Proof of Donations, see below:
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Project Risks
The following risks are identified in this context:
Unclear jurisdiction (e.g. for taxation)
Legal non compliance leading to ineffective donations.
Normally, a legal entity would be organizing a donations campaign. How should we organize the campaigns in the context of this framework? Vision: a decentralized, global campaign. Notes for consultation with legal team of LittleFish on Nov. 8th 2023: Some jurisdictions require the receiver to fulfill some requirements. Some countries allow organizations to collect donations globally. Next steps: see next section
Donations keep flowing to outdated wallets
Ineffective donations and loss of trust from the community.
Is there a way to redirect incoming transaction to the "new" address? Usage of $ADA Handle to mitigate the risk?
Perceived unfairness of who receives it
Some town hall members not interested in donating through this initative
Make sure that what we fund is not too regionally centered but is somehow global in nature
Which other risks do you see?
Risk Mitigation
With regards to the Unclear jurisdiction (beneficiary side):
(1) Identification of the criteria which the receiving non-profit organizations will have to fulfill, e.g.
are crypto donations allowed
are anonymous donations allowed
are there any maximum values for such donations
(2) Request the organizations to apply for being part of the initiative, incl. registration data as a registered non-profit organization, main contact, etc.
(3) Evaluate and review the potential recipients and inform all applicants about the outcome.
(4) Plan and execute a community vote to determine the beneficiaries for the pilot execution.
For the coordinating side:
From the legal consultation with the LittleFish team on Nov. 8th 2023, our understanding is, that a non-profit-organization should be identified to clarify potential legal aspects in the context of organizing a global donations compaign, which would also allow for anonymous donations (i.e. no KYC requirements to effectuate the donation).
In a theoretical case, a German registered non-profit would be the coordinating legal entity, one of the most important aspects is that, if a donor requests a donation confirmation (German "Spendenquittung"), then a threshold of 10.000 EUR must be observed for KYC. In Germany, non-profit organizations like e.V. (eingetragener Verein, which translates to registered association) are subject to anti-money laundering regulations. The KYC (Know Your Customer) process is typically required when a donation exceeds a certain threshold amount. As of the last update of ChatGPT in January 2022, the threshold for mandatory KYC checks in Germany was €10,000.
Project Milestones
The milestones will be defined after aligning on the aspects above and getting all stakeholders on the same page.
Cost Estimate
Because the main goal is to direct as much ADA into non-profit organizations as possible, the expenses shall be reduced to a minimum. In order to increase awareness for the initiative, and incentivize the projects and individuals to donate, a certain portion will be reserved for marketing and merchandise purposes.
The overall expenses shall not exceed x% of the collected ADA. -> Voting with community participation to determin the threshold will be planned.
Approval Requirements
This section will describe how decisions will be taken and documented. In preparation and to be aligned with the stakeholders.
Project Success Criteria
01
Process is clearly defined and documented.
Any other group or organization can re-use the process as a blueprint for a similar campaign.
02
First pilot donations campaign incl. Proof of Impact was conducted and published.
Goal is to identify areas that required improvement for the subsequent iterations.
03
Next steps (i.e. Roadmap) defined
A detailed plan for the next stage is created and aligned with the stakeholders.
Historical Information
As this is the first campaign of this nature, we will ensure that all Lessons Learned are documented and processed effectively.
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