It sounds like you have a great starting point to create a DAO or NGO. If set up correctly I would think donations could easily be tax breaks to drive people to invest. It could create jobs, housing, and even help build communities. That all sounds great!

On the other side how can you guarantee someone with enough funds could not hijack the system and change it into something else? Maybe a nice in between would be a public ledger or blockchain for government spending. This could include section 8 housing funds as the payment to refund "HST" token you mentioned.

The verification of ID is an easily solved problem just for giving up some freedom. There are a few different biometric technologies that could be used independently or together for greater security. Some of the include Fingerprints, Retina Images, Facial Recognition software, and there are probably many others.