Blockchain for Organizational Transparency in Nonprofits
Abstract
Trust and accountability are fundamental pillars in the operation of nonprofit organizations (NGOs), yet they are often undermined by structural barriers, lack of financial traceability, and limited operational transparency. This article explores how blockchain technology can be applied in NGOs to enhance institutional legitimacy through verifiable, automated, and auditable processes. A quantitative approach was adopted using frequency analysis and impact measurement, based on five anonymized NGOs with diverse social missions. The findings reveal significant improvements in key indicators such as resource traceability, donor trust, and administrative efficiency. Additionally, major barriers were identified—including lack of technical capacity and legal uncertainty—and a progressive implementation model was proposed, comprising organizational diagnosis, adapted technological development, and continuous evaluation. This study shows that blockchain, beyond its technical capabilities, can serve as a strategic tool to strengthen transparency and governance standards in the nonprofit sector.Downloads
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References
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Christensen, C. M. (1997). The innovator's dilemma: When new technologies cause great firms to fail. Harvard Business Review Press.
Christensen, R. A., & Ebrahim, A. (2006). How does accountability affect mission? The case of a nonprofit serving immigrants and refugees. Nonprofit Management and Leadership, 17(2), 195–209. https://doi.org/10.1002/nml.142
Ebrahim, A. (2003). Accountability in practice: Mechanisms for NGOs. World Development, 31(5), 813–829. https://doi.org/10.1016/S0305-750X(03)00014-7
Li, J., Greenwood, D., & Kassem, M. (2020). Blockchain in the built environment and construction industry: A systematic review, conceptual models and practical use cases. Automation in Construction, 102, 288–307. https://doi.org/10.1016/j.autcon.2019.01.004
Maier, F., Meyer, M., & Steinbereithner, M. (2016). Nonprofit organizations becoming business-like: A systematic review. Nonprofit and Voluntary Sector Quarterly, 45(1), 64–86. https://doi.org/10.1177/0899764014561796
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf
O'Dwyer, B., & Unerman, J. (2008). The paradox of greater NGO accountability: A case study of Amnesty Ireland. Accounting, Organizations and Society, 33(7–8), 801–824. https://doi.org/10.1016/j.aos.2008.02.002
Prakash, A., & Gugerty, M. K. (2010). Rethinking foreign aid: Accountability and effectiveness in foreign assistance. Brookings Institution Press.
Rauchs, M., Glidden, A., Gordon, B., Pieters, G., Recanatini, M., Rostand, F., & Zhang, B. Z. (2018). Distributed ledger technology systems: A conceptual framework. Cambridge Centre for Alternative Finance. https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/distributed-ledger-technology-systems/
Rejeb, A., Keogh, J. G., & Treiblmaier, H. (2020). Leveraging the Internet of Things and blockchain technology in supply chain management. Future Internet, 12(6), 94. https://doi.org/10.3390/fi12060094
Rejeb, A., Simske, S. J., Keogh, J. G., Treiblmaier, H., & Zailani, S. (2021). Blockchain technology in humanitarian operations: A review. Annals of Operations Research. https://doi.org/10.1007/s10479-021-04184-6
Tacon, R., Walters, G., & Cornforth, C. (2017). Accountability in nonprofit governance: A process-based study. Nonprofit and Voluntary Sector Quarterly, 46(4), 685–704. https://doi.org/10.1177/0899764016668895
Tapscott, D., & Tapscott, A. (2016). Blockchain revolution: How the technology behind bitcoin and other cryptocurrencies is changing the world. Penguin.
Treiblmaier, H. (2018). The impact of blockchain on the supply chain: A theory-based research framework and a call for action. Supply Chain Management: An International Journal, 23(6), 545–559. https://doi.org/10.1108/SCM-01-2018-0029
Wellens, L., & Jegers, M. (2014). Effective governance in nonprofit organizations: A literature based multiple stakeholder approach. European Management Journal, 32(2), 223–243. https://doi.org/10.1016/j.emj.2013.01.007
WFP (World Food Programme). (2020). Building blocks: Blockchain for zero hunger. https://innovation.wfp.org/project/building-blocks
Xu, X., Weber, I., & Staples, M. (2019). Architecture for blockchain applications. Springer. https://doi.org/10.1007/978-3-030-03035-3
Yermack, D. (2017). Corporate governance and blockchains. Review of Finance, 21(1), 7–31. https://doi.org/10.1093/rof/rfw074
Zheng, Z., Xie, S., Dai, H., Chen, X., & Wang, H. (2020). An overview of blockchain technology: Architecture, consensus, and future trends. IEEE Access, 7, 117827–117843. https://doi.org/10.1109/ACCESS.2019.2935545
Published
2026-01-15
How to Cite
Marceles Palma, V. (2026). Blockchain for Organizational Transparency in Nonprofits. IJMSOR: International Journal of Management Science & Operation Research, 9(1), 86-97. Retrieved from https://ijmsoridi.com/index.php/ijmsor/article/view/150
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