changing humanitarian aid for good.

The humanitarian sector suffers from chronical inefficiencies.

Karuna raises the efficiency of donations by following four key drivers to offer the best experience for recipients, additional synergies with local NGOs and the biggest impact in every single donation.

Direct Donations

We ensure making the most of your donations by sending them straight to recipients. This enables us to bypass costly intermediaries and additional bureaucracy.

Financial Freedom

We know that every recipient has distinct needs. Instead of sending predefined care packages we let them decide what they need the most, enabling the sourcing of local goods.

Partners For Education

We make sure to use synergies with local NGOs by tying donations to the participation in their education programs. Your donations act as scholarships for personal development.

Digitization

We leverage the newest technologies like mobile banking and blockchain to make every penny count, while automating processes to ensure maximum efficiency.

Granting Scholarships in Africa

With a scholarship of as little as 1,00 € per day we can enable people, who lack financial freedom to attend education programs from NGOs and Governments, to develop themselves.

We call these scholarships microdonations, which allow people who work two digit hours a day to reduce their  workload to attend school or other programs. Local entities help us identify people in this situation and apply them for a scholarship with Karuna.

Daily Microdonations as Scholarships

Through modern technologies like mobile banking and blockchain we are able to send microdoantions on a daily basis with minimum operational costs to recipients.

This allows us to tie attendance and participation in programs to payouts, meaning we only help those who really want to pursuit an education and professional development.

Why Our Direct Donations Model?

Recent studies have shown a clear positive link between cash-based donations and increases in education, health, nutrition, savings and investments while not having a statistically significant impact on employment.

More Sustainability

Cash-based donations came to disrupt costly in-kind donations, which more than often come imported from faraway lands through several intermediaries and expensive supply chains. Additionally, those imported products are offered for free, crushing local businesses and entrepreneurs, who can’t keep up the competition.


 

Tech Enhanced

Advances in technology adoption in Mobile Banking and Blockchain created the environment to enable direct cash transfers, thus reducing the need for intermediaries and direct physical presence, which in turn reduces transaction costs. These advances enable us to send donations directly to mobile phones of recipients with no wait times in distribution centers and astonishing efficiency compared to other humanitarian aid alternatives.


Efficiency Gains

Preliminary tests show a donation efficiency of 95% for our program, meaning that for every Euro we donate only five Cents are needed to cover all incurred costs, in contrast to in-kind donations, which can show value losses of up to 60% before arriving at recipients. This means more impact with less resources.


Our Work

We enable cross-border cash donations at minimum costs to recipient’s mobile phones. Our donations are paid out daily as microdonations ranging from 70% – 100% of the extreme poverty line income of the destination country. This gives people space and time to attend school or other courses, avoid child labor or create her or his own business, which gives them a perspective for the future.

To achieve this, we work with local NGOs, which offer education projects. Several NGOs struggle with declining attendance during their programs, which is partly explained due to reduced income, since working times are reduced during the participation in such projects. To solve this, we offer people who attend these programs daily microdonations, which act as scholarships. This increases attendance and overall impact of these initiatives by reducing the time they need to work per day. Those NGOs help us to find people whose presence during programs depend on the availability of such education tied income. Our donation process is simple and transparent. Incoming donations are transferred to the destination country through the cheapest available channel, e. g. Blockchain. From there we send the predefined donation amount to recipient’s mobile banking account daily. People are free to use the money in the way that suits their individual needs. The increased availability of money in determined regions pushes local demand for goods and services, creating a more sustainable environment for local businesses to thrive.

Our Awesome Team

We are four engineers from three different nationalities, who decided that the humanitarian aid sector needed a push into the twenty-first century through technology and economics instead of pretty pictures and bloated operations.

Alexander Hupfeld

Cofounder

Erik Kaiser

Cofounder

Maarten Hendricks

Cofounder

Omar Kamel

Cofounder

Why is it Sustainable?

A clear trend in favor of cash transfers instead of in-kind donations can be recognized within the humanitarian sector for several reasons. Our model adds even more advantages to this approach.

Individual Needs

Instead of dictating what recipients are able to consume they can choose what they need the most at any given time.

Donation Efficiency

Direct cash transfers do not go through costly supply chains and intermediaries like in-kind donations do. Specifically in our case it means that  95% of the donated amount reaches our recipients.

Local Economies

In-kind donations tend to import goods which are then distributed for free. Cash transfers generate customers for local businesses ensuring sustainable growth.

Anonymity and Security

Since the money is transferred directly to the mobile phone of recipients  they can choose to stay anonymous and hidden from potential robbers.

Get Involved

Empower One

Empower One is the perfect solution for any person willing to give ongoing support for someone in need. For as little as 7,00 € a week it’s possible to have lasting impact on someone’s life giving them the opportunity for education, nutrition, financial stability but most of all a perspective for the future.

 

Empower Many

Empower Many is our corporate solution for companies interested on having a quantifiable impact on their donations. Companies can support a flexible amount of people for set amount of time, offering financial aid for hundreds of people at once for projects of their desire.

 

Volunteer With Us

We are looking for volunteers with passion for social impact and entrepreneurial thinking to further develop our platform.

Desired backgrounds are: – Information Technology – Design – Sales – Legal