I congratulate you on the arrival of the blessed month of Ramadan, and on this charitable occasion, I am pleased to present to you a research paper I have worked on, which studies the current state of donation-based crowdfunding platforms, also known as #Donation_Fintech.
I will provide you with a summary of this study, and you will find the full file as a gift at the end of the article.
Title of the Study: Donation Fintech
In light of the rapid developments the world is witnessing in the field of digital transformation, the nonprofit sector in Saudi Arabia is in urgent need of keeping pace with these changes in order to achieve maximum effectiveness in supporting social development and strengthening community cohesion. This research focuses on analyzing the growing role of digital technologies in empowering nonprofit organizations in Saudi Arabia by reviewing the current landscape, studying successful case examples, and developing a strategic roadmap for adopting technology and fostering innovation within the sector
Research Problem:
The research problem lies in how nonprofit organizations can adapt to the increasing challenges amid social and digital changes, and how they can utilize innovation and financial technology to achieve their objectives.
Current Status of the Nonprofit Sector in Saudi Arabia:
The nonprofit sector in Saudi Arabia officially began to emerge in the 1950s. With the launch of Saudi Vision 2030, the sector became an essential part of the government's strategy to promote sustainable development and community participation. The sector plays a vital social and economic role, contributing to the strengthening of social solidarity, achieving sustainable development, and providing various services in the fields of health, education, and social relief.
The Importance of Digital Transformation in the Nonprofit Sector:
Digital transformation has become central to the development of the nonprofit sector in Saudi Arabia. With the widespread use of the internet and smartphones, the government and nonprofit organizations have begun adopting technology to enhance efficiency and reach a broader audience. Financial technology (Fintech) has become an essential part of this transformation, contributing to improved fundraising methods, better financial management, and streamlined financial operations.
Tools for Empowering Nonprofit Organizations:
Enhancing digital infrastructure: developing integrated digital platforms, strengthening cybersecurity, automating processes and reports, enhancing data collection and analysis, using blockchain technology, and encouraging training courses for employees.
Financial technology (Fintech): facilitating fundraising and increasing revenues, improving transparency and donor trust, reducing operational costs and enhancing efficiency, expanding access to supporters, and providing innovative financing options.
Improving legislation and policies: establishing a legal and regulatory framework that supports innovation and enhances the regulatory environment for the nonprofit sector.
Encouraging innovation and developing new solutions: utilizing digital technology, co-designing projects, diversifying funding sources, analyzing data and making decisions based on it, and emphasizing experimentation and continuous evaluation.
Crowdfunding Platforms in the Nonprofit Sector
Several successful crowdfunding platforms, both local and global, were reviewed, such as GoFundMe, JustGiving, Ehsan, Jood Eskan, and Tabarru. These platforms offer innovative solutions for fundraising and managing charitable projects, with a focus on transparency and ease of use.
Key Findings
Diversity in Supported Areas: Donation fields vary significantly across platforms, with local platforms focusing on issues such as health, education, and housing.
Ease of Use: All platforms offer user-friendly interfaces, with local platforms standing out by providing mobile applications.
Transparency: All platforms provide reports on the impact of donations, with local platforms distinguished by a high level of transparency supported by detailed reports and government oversight.
Integration with Government and Private Entities: Saudi platforms enjoy strong integration with both government and private sectors, which enhances their effectiveness.
Support for Repeat Donations and Increased Donor Loyalty: The platforms have shown high rates of repeat donations from donors, reflecting their satisfaction and trust in these platforms
Financial and Statistical Performance: Global platforms excelled in fundraising volume, while local platforms achieved notable success in raising funds to support local causes.
Support for Modern Technologies: The Ehsan platform stands out for its use of artificial intelligence to provide personalized donation suggestions, showcasing its innovation in enhancing the user experience.
Key Recommendations
For Policymakers: Establish legislative and regulatory policies, support digital infrastructure, collaborate with the private sector to provide tax incentives, strengthen partnerships between platforms and government sectors, and promote education and training on digital philanthropy.
For Donors: For Nonprofit Organizations: Expand partnerships, leverage technology to boost engagement, provide training on managing digital campaigns, deliver transparent and high-quality reports, focus on recurring donations, and measure beneficiary satisfaction
3. للجهات الأهلية: توسيع نطاق الشراكات، الاعتماد على التكنولوجيا لزيادة التفاعل، التدريب على إدارة الحملات الرقمية، تقديم تقارير شفافة وذات جودة، التركيز على التبرعات المتكررة، وقياس رضا المستفيدين.
In Conclusion
The study showed that digital technologies offer innovative solutions that enable nonprofit organizations to reach a wider audience and achieve the level of transparency required to build trust with donors and beneficiaries. Digital tools provide significant flexibility in project management and performance monitoring, which contributes to enhanced transparency, improved distribution efficiency, and a faster response from the sector to community needs. Encouraging innovation in digital financial technologies and developing appropriate legislation is a fundamental pillar for supporting the nonprofit sector and strengthening its role in achieving sustainable development in Saudi Arabia.
You can access the study through the following link:
https://drive.google.com/file/d/1XJGTGIwtX-f-cNi6Bx93MMRRUUiOyW4g/view?usp=drivesdk
ورمضانك مبارك.
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