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.
Karuna Technology UG (haftungsbeschränkt) ist ein junges Unternehmen, welches im Sommer 2018 in das Business Incubation Center Programm der European Space Agency in Darmstadt aufgenommen wurde. Die Karuna Technology UG (haftungsbeschränkt) hat es sich zum Ziel gesetzt, eine Plattform zu entwickeln, mit der monetäre Spenden direkt und effizient an den Spendenempfänger geschickt werden können. Im Zuge dessen erhält die Karuna Technolgy UG (haftungsbeschränkt) finanzielle Unterstützung von der Europäischen Union (EFRE).
We ensure making the most of your donations by sending them straight to recipients. This enables us to bypass costly intermediaries and additional bureaucracy.
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.
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 a 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 can send microdonations daily with minimum operational costs to recipients.This allows us to tie attendance and participation in programs to payouts, meaning we only help those who want to pursue 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.
We enable cross-border cash donations at minimum costs to the 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 a 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 money in a 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.
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.
Instead of dictating what recipients can consume they can choose what they need the most at any given time.
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.
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.