Charity ratings are highly unpredictable with highly appraised top ranking charities being overtaken by new charities that suddenly make their appearance in the horizon. Charity Water is a rather new but typical example of this. Innovativeness and the all-powerful Internet are causing charity ratings of brand new charities to skyrocket. A charity that could be relatively unknown today might get rated as the best the next day by the New York Times. And then the rating of that charity might shoot up from nowhere to the top of the chart within the matter of a single day.
Because of the power the mass communication media have over the people, when a charity is in the good books of the media, it expands very quickly and manages to get a lot of charitable giving. By that same yardstick, when media do not have much interest in propping up a given charity, its rating also plummets in the same proportion.
Directory lists of charity rating
With cynicism a bit on the higher side and eagle eyed guardians of charity practices ever on the lookout for malpractices, with huge amounts of money spent on managing or misuse of funds, directory listings of charity ratings are having a field day. It is rather strange that altruistic organizations, the purpose of which is to give others, themselves come under the scrutiny of guardians of ethics. Altruism is becoming a knotty issue!
Institutions like Givespot.com, Guidestar.org etc. provide comprehensive listings of charity ratings. GiveSpot 100 list is the list of the 100 highest ranking charities that is provided by Givespot.com. Another one that provides similar data is charitynavigator.com which has a list of the top ten charities as well a charity check system. Finding out charities is made easy by this. The biggest charity director of US is Guidestar.org with lots of free data on charity as well as information that can be availed for payment. Though its name gives a different impression, Better Business Bureau is a charity directory that gives a list of both commercial and non-profit ventures of USA.
With enough charity rating guides, there is no data shortage for anyone who wants to get information on the 100 top charities, but what constitutes real rating is something different. What in reality makes a charity superior has nothing much to do with its ratings. There are characteristics that make an organization, whether charity based or otherwise, stand out from the rest.
Charity Ratings and trust in the public
According to a YouGov poll of 2005, even well known charities like Save the Children and Oxfam did not enjoy a high amount of faith by the majority of the British population amounting to 56%. The public seemed to have faith only in about 15% of the charities even among those that had good charity ratings.
Charity Watchdog Scares are more common
Belief in charities is at an all time low these days. Public can hardly be blamed for this. Charity watchdogs are ringing warning bells of charity institutions spending even up to 60% of the amount collected on overheads that include big salaries for managers so that very little remains for real charity giving.
Recent studies show that the average costs of raising funds in the UK and Australia are\’% or 22% respectively. In the USA, the Association of Fundraising Professionals found the statistic to be around 30%. These figures do not even include admin expenses, which are often much higher. Some charity givers see this as a key issue especially with charitable giving often in the media spotlight like it was in Singapore a fewyears ago. The additional negative focus tends to reduce charitable giving which is not good.
Charity ratings secret exposed
There is practically no difference between a charity and a commercial enterprise when it comes to the question of drawing money. They way they put the money to use might be different, but the techniques they use to get that money are more or less the same.
In order to get the funds necessary for functioning, as well as to improve the charity ratings, there is only one assured way – make it tempting.
When we see a thing and might prefer to buy it, or would consider putting money in it, or creating a bond with it, we are likely to make the decision based on how enticing the whole idea is. If it is a very attractive proposition, we might instantly choose to opt for it while if it is not very enticing, we may not do it immediately.
Charity Water was exceptionally successful in getting media backing and good charity rating because of their appealing idea. The scheme of charging a good price for a bottle of charity water, and using the profits thereof for getting clean water to areas where it was not available, was a fascinating idea that appealed to all.
The elements making up the attractiveness for Charity Water and boosting it\’s ratings are quite obvious.
* They have a cool name – who would think of calling a charity Charity WaterThe person behind the charity was on overdrive with passion in sharing about their idea
* The message and objective are clear, straightforward and singular – sell water and give water – Buy One Give One
* They gave importance to the solution and not to the problem. This is an assured way for any charity to get a good charity rating in the public\’s eye. People by and large have no interest in being reminded of the miseries of life. They prefer to feel elated. So in this case when they know that their act, that of buying a bottle of water, can affect the lives of others positively, they are glad.
How to reduce you Charity Ratings in a heart beat
The fastest way in which a charity\’s ratings would go down is when it turns itself less tempting by centring its attention on the problem. People are by and large disinclined to listen to negative things. On the contrary, most people are keen on listening to positive things that involve verve, dynamism, motivation and effort to bring in a fresh vision.
We only need to observe ourselves with our own children and experience how when our children ask us for something in a fun and lively and enthusiastic way we just want to say yes. And when they ask us for the same thing in a whinging and whining way we say no very quickly.
The picture a charity projects would strongly affect its ratings. By projecting an arousing and motivating picture of itself it will be able to influence people well. Then people will be ready to give more in response.
Social Enterprise raises Charity Ratings and reduces Fundraising Problems
Social Enterprise is a new business pattern that evolved a few years ago. This combines trading with a social purpose. This pattern is a result of the interest of some businessmen who have social objectives but does not find the type of functioning of charitable enterprises satisfactory enough.
Many socially conscious businessmen may find the ambiance of a full fledged commercial venture and its decision making mechanism unpalatable. For such people a social enterprise is an apt field where they can use their business acumen and inspiration effectively to solve social problems and usher in changes. One of the best known among such socially aware entrepreneurs is Muhammad Yunus who won the Nobel Peace Prize in 2006. He was the first business man to be given such recognition.
Buy1GIVE1 commonly known as B1G1 (Buy 1 Give 1), is a global organisation that is a recent entrant into the world of charitable giving. It is a perfect blend of business and valuable causes functioning at the global level. Buy1GIVE1 has so minimised its expenses of fundraising and management that it is able to give for charity all the funds collected. The institution is similar in its attributes to the online organization Kiva.org, which has been promoted by Bill Clinton; unlike conventional charities, Buy1GIVE1 involves direct giving to charities. Many people are convinced that it is a better way for contributing things and receiving richly in return.
Business leaders who are looking for opportunities to give back in effective ways and give to worthy charitable causes, see the great value and well-defined key marketing advantages businesses like Buy1GIVE1 offer. Each sales transaction makes a difference – and not just in an altruistic sense. With powerful \’impact-matching\’, businesses are gifted with an eye-opening, attention-grabbing marketing story. Compare the business that gives away a million dollars to charity with the one that lets their customers experience the joy of giving with Buy1Give1 transaction-based giving.
Enterprises like Buy1GIVE1 provide details of charity requirements, especially those which are really needy causes, and these always manage to attract lots of donations. Entrepreneurs understand very well the fundamentals of these equations and so are more likely to help such causes rather than worry about the charity rating. They know very well that people have an inherent tendency to respond to a more touching requirement, than simply to media rating.
The Australian company Maple Muesli collaborates with an Indian charity called Midday Meals in the city of Mumbai. Whenever someone buys a bag of muesli, the contribution from it feeds a needy child there. A meal for a child costs only the equivalent of 30 US cents and the charity in this way feeds 125,000 kids in Mumbai every day. This makes the children desist from begging, keeps them away from streets, and makes them remain in school.
Maple Muesli has familiarised the whole of Australia with the noble cause of the Midday Meals. The company has made all its customers aware of the stupendous service the charity is doing and how their money is helping it. This has made Midday Meals tremendously popular even though all they are doing is providing meals for the kids. The era of Effective Giving has dawned – that of Plain Charity Donations is disappearing at the horizon.
We will surely see a change in the landscape of the top 100 charities over the coming years as new and innovative and far more effective ways of giving are created. These days we are spoilt for choice on how we can make our charitable giving. Not all of them are efficient ways to make a difference.
Alternative Charity Ratings
Some of the new and different ways to give are highlighted and rated in the table below. Charity Comparison Points
We have compared and rated a few well-known and less well-known charities and Social Enterprises on areas that are important to their donors.
THE SALVATION ARMY
ROUTE TO GIVING: DIRECT GIVING
The Salvation Army comes among the top 100 charities globally – contributions are made directly by both businesses as well as individuals.
TRANSPARENCY – B – Lack of transparency – Sum of money is contributed – but result is not fully measurable.
ADVANTAGE TO BUSINESS – C – Even a single donation to Salvation Army by a business might find mention in the press.
COSTS OF FUNDRAISING – B – Huge amounts are spent every year for raising funds.
DONORS\’ CHOICE POTENTIALS -B- For those who want to give directly, there are plenty of charities to choose from.
PROMISE FOR GLOBAL CHANGE -C- No potential noticed for bringing about a market change.
PRODUCT (RED)
WAY TO GIVING: MARKETING CAMPAIGN
Product (RED) is a brand licensed to partner companies, to raise money for the Global Fund to Fight AIDS, Tuberculosis and Malaria in Africa.
OPENNESS – B – Not sufficiently open – Plenty of money is being collected – but the results are not always completely clear.
MARKETING VALUE TO BUSINESS – A – People and businesses love to support (RED) as it is backed by adored personalities like Oprah & Bono. Marketing results a little hard to track though.
FUNDRAISING COSTS – C – Spends hundreds of millions of dollars on advertising – could have just given that money to Africa.
DONOR\’S CHOICE OF CHARITY – C – Limited choice for collaborators on deciding to which charity they should donate – all their charity work is in Africa.
POTENTIAL FOR REAL GLOBAL CHANGE – B – Products (RED) only partner huge companies and all their profits go to Africa.
THE BODY SHOP
PATH TO GIVING : BUSINESS TRADE & GIVING
The Body Shop has a purchasing program known as community trade to help Third World countries; and from the income they generate, substantial contributions are made to charities.
CANDOUR – B – Insufficient candour – Lots of money is donated – but result is not completely quantifiable.
BENEFIT FOR THE BUSINESS – A-tve – Customers are interested in community trade and it increases their interest to do business with the venture. Visibility is not entirely sufficient.
COSTS OF FUNDRAISING – A -Comparatively low – It is a good business pattern that makes a lot of donations to charities and enhances community trade.
DONOR\’S CHOICE OF CHARITY – A – Enterprises are at liberty to choose where their contributions should go.
PROMISE FOR GLOBAL CHANGE – B – The potential for giving back to the community is substantial – but not everyone have the impetus and the extra energy to impel the change.
LIVE EARTH
ROUTE TO GIVING: EVENT FUNDRAISING
Live Earth was a series of music concerts for a global audience held on July 7, 2007 which kick-started a three-year long campaign to fight climate changes across the world.
CANDOUR – F – As per the reports of the site Intelligent Giving, satisfactory accounts were not produced on the proceeds from the sales of tickets.
ADVANTAGE TO BUSINESS – B – The sponsors of the business benefited by the good press coverage, though by being a single occurrence results were not properly assessable.
EXPENSES FOR RAISING FUNDS – C – Substantial sums were spent on promotion of an event which was considered a fiasco by many as it did not have any proper objectives.
DONORS\’ CHOICE POTENTIALS – C – Funds were made available only to three charities.
ABILITY FOR EFFECTING A CHANGE – C – Occasions like this can be managed only yearly or may be still rarely. The earnings are mostly donated to charities that are already established.
Buy1GIVE1 (B1G1 )
ROUTE TO GIVING: SOCIAL ENTERPRISE
B1G1 is a brand licensed to form a partnership with any business – connecting them with any worthy cause in any place. A truly universal precept.
OPENNESS – A – The one for one style of giving sees to it that the donors\’ money reaches the specific cause that it is meant to help. Donors are provided information on how exactly their money is being utilised – how many kids were fed or how many trees were planted.
BENEFIT FOR THE BUSINESS – A+tve – Superb marketing value as a result of:
* Calculable giving * Media interest * Effective stories * Person to person * Returning customers
EXPENSES FOR RAISING FUNDS – A+tve – No cost at all – B1G1 can look after a charity\’s fundraising requirements which will include a good percentage of management also. All the funds that have accrued go to the cause.
CONTRIBUTORS\’CHOICE OF CHARITY – A – Business givers can choose their charity project or elect to give to a charity cause such as food or education, etc.
PROMISE FOR GLOBAL CHANGE – A – Unlimited. If more and more businesses can collaborate with charities internationally, the prospects for real change is colossal.
You Would Think Giving away Money Would Be No Big Deal!\”
You would think that giving money is easy – pull out a wad of cash, write a cheque or punch in your credit card details. Yet, billionaires philanthropists like George Sores , have gone on the record as saying that effective giving is one of the hardest things to do. Developing nations receive billions of dollars every year and yet it often seems like nothing changes much.
Asking the right questions is necessary for bringing about the required changes. Social entrepreneur Mohammed Yunus, who won the Nobel Peace Prize, has done pioneering work in the field of Microfinance and is revolutionizing the ways in which indigence and environmental problems can be tackled. People like him are showing the way as to how consumerism and social enterprise can change the face of the world. Another such example is the \’Trade – Not Aid\’ of The Body Shop. The ideals of Buy1GIVE1 are equally potent and are a model for charities. Social enterprise needs total recognition.
When questioned on how one can bring about some positive global change, Bill Gates showed Kiva.org and Buy1GIVE1 (www.b1g1.com) as examples of charities that enrich the giver. Those who sponsor a business are updated by Kiva.org about the activities of the business. Buy1GIVE1 also does this. By this arrangement enterprises get enough stories to tell their clients – if they buy a laptop they will know that it will help in some needy person somewhere else getting a computer.
Other ways to improve your Charity Ratings
Make sure that you have an open attitude, use the laptop effectively, and keep apart a little time to observe the novel and wonderful systems of charity that are being born. These function through the internet and are mostly network based.
Today if you are not linked in with powerful global networks through the Internet you are missing out and no matter what your charity rating is today, tomorrow things will change – radically.
Many enterprises emerge out of thin air nowadays and grow enough in the matter of maybe three years to be sold for more than a billion dollars. This was unconceivable ten years ago, though today it has become a routine state of affairs. All these online enterprises are doing the same thing – drawing on international networks or themselves making international networks.
Buy1GIVE1 (Buy One Give One)
Buy1GIVE1 is a rather new entrant to the world of Social Enterprises and was launched in\’97 by a Japanese lady called Masami Sato. Any business can avail a membership in Buy1GIVE1, and membership charges for smaller ventures will only be one dollar a day and donations can be as little as one cent on a sale. Buy1GIVE1 is in the forefront of the Buy One Give One transaction-based giving world movement. Joining hands with Buy1GIVE1 is totally uncomplicated for businesses as well as charity needs. The working pattern of Buy1GIVE1 is perfectly controlled and practical. It connects the products or services of any given business to a needy cause (Buy1GIVE1\’s or their own) and after that whenever a sale is closed, it has to be recorded and the contribution percentage sent to the charity at the end of the month or end of quarter year directly or through Buy1GIVE1.
You are strongly advised to create lasting bonds with Buy1GIVE1 and also motivate your business associates to join Buy1GIVE1. It is a singular and wonderful organisation doing stupendous work and no one can afford to ignore it.
A new epoch in charity giving
Organizations that have been non-entities just a couple of months ago have now invaded internet with resounding user acceptance. Having an online presence on sites like MySpace, YouTube, Twitter, Facebook, NING or TipJoy are becoming survival requirements. Likewise companies like The Present, Buy1GIVE1 and Kiva are organisations that one should build a relationship with. These are the avant garde institutions that help to create and sustain charity ratings. Now is the time to give new life to a perfect future.
Discover more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing.
