What do the terms Social Entrepreneurship, Sustainable Philanthropy, Impact Investment, and Profit With Purpose all have in common? Well, they all talk about the idea of being able to generate a financial return whilst creating a positive social impact at the same time, and that these two things are not mutually exclusive. At Perpetual Altruism, this rather simple yet very powerful idea of aligning the for-profit motive with social impact is a vital part of our company’s DNA and we believe that it’s a key part of the future of Capitalism.
The Power Of Sustainable Philanthropy
Much of the charitable giving and philanthropic activity that for-profit corporations engage in today is not as effective or impactful as it could be. The traditional approach of handing out one-off donations or holding branding/sponsorship fundraising events in partnership with charities actually leads to charities having an unsustainable reliance on piecemeal “handouts”. By building philanthropy into a company’s business model, charitable organisations can rely on more recurring and stable income streams. They can also focus their time and effort on their primary philanthropic mission, rather than having to spend more resources on fundraising activities. This model also means that businesses end up investing on behalf of the charitable causes they support because they are looking for greater financial returns coupled alongside greater social impact.
Cryptograph’s Sustainably Philanthropic Business Model
Every Cryptograph that is sold on our platform supports a charitable cause and every time a Cryptograph is bid on or transacted, it automatically raises money for its charity, creator, and for our company Perpetual Altruism. These transactions take place on the Ethereum blockchain, making everything transparent and traceable. Cryptographs are also indestructible by nature, meaning they will keep generating revenue and making an impact perpetually. As a rule, a minimum of 10% of all the revenue generated by a Cryptograph goes to the creator’s chosen charity and in many cases, Cryptographs will be giving upwards of 70% of their total revenue to charity forever.
This revenue share structure that we employ at Cryptograph is very powerful because it means that we and the charity are equal partners. When we decide to invest our portion of the revenue share back into the business to further grow the brand and number of Cryptographs in circulation, we increase the overall revenue of the platform and in turn generate more income for charitable causes. This model is very powerful because it means that we bear all of the operational costs and risks whilst delivering only the upside of these efforts to our charity partners. This model also incentivises everyone involved in the Cryptograph ecosystem to continue to deliver value and grow the philanthropic impact of each Cryptograph over the long term.
Bridging Blockchain And Charitable Organisations
Most charities today do not accept cryptocurrencies as a form of donation. Due to the fact that all of the Cryptograph revenues come in the form of Ether (aka “ETH”, the cryptocurrency of the Ethereum Blockchain), we take this ETH and then convert it into fiat currency via one of our trusted exchange providers to then distribute these funds to charity. The funds are then transferred directly to our Perpetual Altruism Charitable Trust (“PACT”). The PACT is a part of the C.Hoare & Co Master Charitable Trust, a fully financially regulated charitable donor-advised fund that is registered with the UK Charities Commission (Charity no. 1139904). The PACT is responsible for performing the necessary professional due diligence on charities and also for distributing the funds to the relevant charitable causes. Independent reports on the PACT donations are redacted quarterly by C.Hoare & Co. From blockchain to charity, Perpetual Altruism’s transparent process ensures the relevant share of a Cryptographs proceeds can be clearly identified as a charitable donation and it gives us the flexibility we need to be able to change the charity that a Cryptograph supports in the event that the charitable organisation ceases to exist.
Our platform is a powerful new tool that charities can use to perpetually raise funds in a truly sustainable fashion. We make charitable fundraising easier, instantly global, and perpetual in nature, it is a new way to engage in philanthropy in the digital age. We hope that our sustainably philanthropic business model will act as a blueprint for many other companies that want to mix profit with purpose and that Cryptograph too, will generate a huge positive impact in the world.
About the Author
This article was written by Hugo McDonaugh, Co-Founder of Cryptograph