This document discusses several disruptive technologies and their potential impacts and opportunities for funders and civil society organizations. It covers artificial intelligence, blockchain/cryptocurrency, big data, and more. Some key points discussed are: 1) These technologies could enable new ways for CSOs to achieve their missions or operate more efficiently. 2) However, they may also disrupt existing models and create new problems to address. 3) Technologies like blockchain could increase transparency and enable direct transfers, while cryptocurrencies present opportunities but also challenges around volatility. The document examines issues around algorithmic giving, data ownership, and how technologies might affect beneficiaries.

1. 1
Tech, Philanthropy & Civil
Society
Rhodri Davies
Head of Policy & Programme Director, Giving Thought

2. Why should funders and CSOs care
about disruptive tech?
G
O
O
D
B
A
D
NEUTRAL
New ways of achieving mission1)
Change the way organisations operate2)
Create new problems to address3)

3. What is tech disruption?
3
Innovation Disruption
Doing the same stuff,
but better
Doing new stuff Doing stuff that makes
the old stuff obsolete

4. Current Disruptive Technologies
4
Artificial
Intelligence (AI)
Blockchain
Cryptocurrency
Big/Open Data
3D Printing
Virtual &
Augmented Reality
(VAR)
Internet of Things
(IoT)
Autonomous
Vehicles & Drones
CRISPR/Biotech
Wearable tech
Robotics
Human
AugmentationQuantum
Computing

5. Key Questions for Civil Society about
Disruptive Technologies
5
Could it create new ways for
existing CSOs to solve social &
environmental problems?
Will it lead to new
organisations emerging to
compete with existing CSOs?
Could it create entirely new
problems that CSOs will have to
address?
Will it offer new ways for
existing CSOs to run more
efficiently or effectively?
Could it disrupt the existing
governance structures of
CSOs?
Could it give rise to new kinds
of donations?
Will it make it easier or
harder to identify potential
donors?
Could it give rise to entirely
new classes of donors?
Will it offer new ways of
engaging donors and
supporters?
Could the development of
this technology itself be
seen as a charitable cause?
Could it create new challenges
for existing beneficiaries?
Will it reduce or increase
inequality?

6. Cryptocurrency & Blockchain
Technology
6
NB: ≠
Cryptocurrency is the best-known use case of blockchain tech
so far, but there are potentially far wider applications
A blockchain is a distributed public ledger: record of transactions
and ownership within a system, but without need for traditional
trusted 3rd party

7. Non-financial blockchain uses
7
Trustworthy ledgers are pretty important

8. Cryptocurrency
8
Over 1,000 cryptocurrencies. E.g.
N.B: Nearly 40 have market cap of >$1bn each.
For non-
profits:
Opportunities
• Tap into newly
created crypto
wealth
• Get benefits of
blockchain
Challenges
• Technical know-
how
• Volatility
• AML/KYC

9. What are the key feature of
blockchain tech?
9
Public
Immutable
UniversalDistributed
Secure
Inherently
digital

10. What does blockchain enable?
10
Decentralisation & Disintermediation
Radical transparency
Assets and value of all kinds can be recorded
Smart contracts
Transforming governance

11. Civil Society Blockchain Possibilities
(part 1)
11
1) Disintermediation
• Reduced transaction
costs
• Direct cash transfers
at scale
• Increased trust?
2) Radical Transparency
• Ability to track donations
at all points
• Increased trust?
• Challenges in terms of
core costs etc
• What about justified
donor/beneficiary
anonymity?
3) All Kinds of Assets
• Any existing asset
can be recorded on
blockchain- tangible
or intangible
• Entirely new digital
assets can be
created- e.g. tokens

12. Civil Society Blockchain Possibilities
(part 2)
12
6) Real-time
financial info
• Immutable shared
ledger of transactions
• No need for separate
reporting regime
• No need for audit
4) Smart Contracts
• Self-executing computer
protocols that perform
defined functions when
set criteria are met
• Wide range of
applications e.g.
automated Payment by
Results, algorithmic
regulation
5) New governance models
• Distributed Autonomous
Organisations (DAOs)- networks of
individuals able to coordinate at
scale without centralisation by
using smart contracts etc.
• Challenge to traditional charitable
organisations?

13. Blockchain & Global NGO Finance:
Opportunities
13
Real-time financial info &
audit
-Blockchain brings secure, visible
ledger of transactions
-No need for separate audit process
Enables co-ordination
between parties where trust
is lacking
-Rules governing interaction can be
set using smart contracts
-Transparency guarantees honesty
Enhanced KYC/AML?
-Lot of talk about ‘anonymity’ of
bitcoin etc., but actually highly
traceable
-ALSO: potential for dedicated
KYC/AML applications of blockchain
Multiple parties can update
ledger
-Public (any user); Permissioned, anyone
with permission
-Entries immutable once recorded
-Shared ledger: no need for separate
reconciliation process

14. Blockchain & Global NGO Finance:
Challenges
14
Volatility
-Mainstream cryptocurrencies are
incredibly volatile
-unsuitable for non-profits to hold,
and could make use for cross-
border transfer limited
Last Mile Challenge
-How to get money moved as
crypto/tokens to the end users?
-Might not be a problem if simply using
blockchain to track trad finance
-ALSO: integration with MPESA etc.
could help developing world “leapfrog”
Regulation
-Little clarity so far re how crypto and
blockchain will be regulated
-Some regulators clamping down entirely,
others looking to support innovation
-No global consensus
Choosing platform
-Growing number of blockchains and
initiatives built on top of them
-Lots of hype and inflated claims
-Few established use cases/ little track
record
-Difficult for non-profits to navigate

15. Artificial Intelligence (AI)
15
Number of key factors in recent AI growth:
1)More powerful
algorithms
(Deep Learning)
2)Data explosion
3) Greater
processing
power (GPUs)
4)Investment
NB: Narrow/Domain
Specific AI, not Artificial
General Intelligence
(AGI)
Opinions vary on when latter might happen, or if it is even possible, but former is here now.
Yes No

16. AI, Automation and Civil Society
16
Impact on CSOs Wider impact
Robotic Process Automation (Data
handling, grant applications etc.)
Chatbots for customer services &
advice services
Use AI to further mission (e.g.
medical research, conservation)
Increased use of AI by consumers
(e.g. conversational interfaces)
Algorithmic giving
Impact of AI on beneficiaries
(algorithmic bias,
desensitisation etc.)
1.
2.
3.
1.
2.
3.

17. Algorithmic Giving
“If you liked Cancer
Research UK, you’ll
love RNLI!”
Facebook/Amazon model: charity
recommendations based on past
preferences or peer group
behaviour
A.
Philgorithm: Wholly automated
process of matching needs and
interventions
B.

18. Are Philgorithms Feasible?
18
You can’t remove element of heart from charitable giving, so this
will never happen!
A) We will become accustomed to algorithmic advice in all
areas of life, so why not charity?
B) There will be contexts in which giving is only feasible
without human oversight e.g. Machine-to-Machine
(M2M) transactions
Objection:
Response:

19. M2M Philanthropy?
19

20. Data: Big, Open & Everywhere
20
“The world’s most valuable resource is no longer oil, but data”
The Economist (2017)
• Machine learning requires vast quantities of
data
• Growing pressure on data ownership in future
• Charities will need to embrace Open Data,
and get away from “private by default”
mindset
• Potential benefit: 3rd party innovation

21. Digital Identity
21
Proving identity remains one of the biggest challenges online
BUT: big changes may be coming…
Proof of ID - Biometrics, facial recognition etc.
Ownership – “Self-Sovereign Identity”.
Instead of govt, companies etc. controlling your ID; you
hold all data and disclose only those aspects you choose
in any given situation.
NB: Possibility that in future we could all monetise our personal data.

22. Key Cross-Cutting Themes Recap
22
Disintermediation Decentralisation
Algorithmic interfaces
Radical Transparency
New digital assets
Data-driven decision making Data ownership
New types of digital
identity

23. Where to find us
23
CAF Giving Thought think tank: https://www.cafonline.org/about-
us/blog-home/giving-thought
Giving Thought Podcast: http://givingthought.libsyn.com/
@Rhodri_H_Davies

24. Rhodri Davies
Head of Policy & Programme Director, Giving Thought
Charities Aid Foundation
rdavies@cafonline.org