Charity ratings are something so inconsistent that highly rated charities might easily find themselves outdone in rating by unknown ones that materialize out of nowhere. Charity Water is a representative though new sample of this. The power of the online medium and ingenuity are helping brand new charities to drive their ratings sky high. A charity that may not have any rating one day might be considered as one of the top of the chart charities by the New York Times the next day and their rating would then go through the roof in no time.
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.
Charity rating directory listings
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!
Organisations like Givespot.com and Guidestar.org list detailed charity ratings. Givespot.com has a detailed list called the GiveSpot 100 list, which shows its top 100 rated charities. Other organisations like charitynavigator.org have charity check systems as well as a charity Top Ten list so that look up a charity is easy. Guidestar.org is probably the biggest US charity directory offering an amazing array of charity information some free some at a cost. The Better Business Bureau in the USA, despite its name is also charity directory that lists both business and non-profit organisations.
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 faith in the public
A 2005 YouGov poll published that the majority of the British population – 56% – had only a ‘fair amount’ of trust in the global charities like Save the Children and Oxfam . Only 15% of the charities surveyed had ‘a great deal’ of trust – even in the ones that do well in charity ratings.
Charity Warning Bells are more common
People do not have faith in charities any more. They cannot be blamed for this state of affairs. Eagle eyed critics of charities complain about mismanagement in the field with high salaries for the staff and about 60% donations being spent on overheads for running the venture, leaving little for actual charity giving.
It has been shown in recent studies that the expenses for raising funds in places like UK and Australia amount to about18% in the case of the former and 22% in the case of the latter. The corresponding amount in USA is about 30% according to the Association of Fundraising Professionals. These are without administrative expenses, which might be higher. This is a big issue with donors especially in situations like what happened in Singapore a few years ago when the issue fell under the media scanner. This sort of negative attraction leads to a reduction in charity giving which is definitely not a good sign.
Charity ratings secret revealed
There is not much difference in the way in which charity organizations and commercial organizations try to get money. How they eventually use that money may be different, but their modus operandi for attracting that money is essentially 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 look at something and consider buying it, investing in it or connecting with it, we make an instant decision based on how attractive it is to us. If the level of attraction is high, we are highly interested and take action quickly and of course if low, we take our time or decide no.
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 factors that make Charity Water quite fascinating and promote its rating are the following.
* First of all it has an ideal name, Charity Water, which strikes a chord in people’s heart. The person behind the idea was obviously passionate about the image and about taking it to the people.
* They had a simple, single and clear message and mission – sell water give water – Buy One Give One
* They focused on the solution and not the problem. This is the number one mistake that loses charities rating points lowering their charity rating in people’s minds. No one wants to feel guilty and sad. They want to feel uplifted and happy. In this case happy to know they could make a difference in the lives of others by buying a simple bottle of water.
How to reduce you Charity Ratings in a heart beat
The fastest way for a charity to lose its rating is by making itself less appealing by concentrating on the problem. People are hardly inclined to listen about all that negativity going on in the world. On the other hand, most people are ready to listen to sagas of vigour, eagerness, drive and dedication to fashion a better world.
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 Enterprises improve Charity Ratings and solve the problems in Getting Funds
Social Enterprise is a new business paradigm that arose some time ago. This endeavour combines in it a commercial enterprise and charity. This has been initiated by those who are enthusiastic of solving social problems but are not satisfied with the pattern of charity organizations.
The medium of a conventional business enterprise may not be suitable for many businessmen whose ideas of ethics and integrity would be contrary to the way decisions are made in a commercial world. Such people use a social enterprise to use their acumen and ability to create a profit and effect great changes in the social arena. A typical example of such a social entrepreneur is Muhammad Yunus who won the Nobel Peace Prize in 2006 for his rich contributions to improving social conditions.
A new global social enterprise, Buy1GIVE1 commonly known as B1G1 (Buy 1 Give 1), partners businesses with worthy cause and charity organisations right around the world. Buy1GIVE1 cuts traditional fundraising and administrative costs down to nothing: promising to give 100% of all funds received. Similar to successful online entities like Kiva.org , recently endorsed by Bill Clinton; Buy1GIVE1 is an alternative to the traditional way of direct giving to charities. Many find them a more efficient way to make contributions while gaining significant value in return.
Entrepreneurs, who are forever on the lookout for avenues to give in return to the society in effectual ways and to donate to beneficial charitable causes, realise the exemplary worth and strong marketing principles of organisations like Buy1GIVE1. Each and every sale that is made makes a change – not merely philanthropically. It makes a change with its strong impact as well, for every sale that is made becomes a poignant story that is an eye-opener. Buy1Give1 is a far cry from the commercial enterprises that might donate a million dollars to charity, for it lets the customers fully relish the joy of giving. The transaction-based giving of Buy1Give1 is a lesson in perfection.
Businesses like Buy1GIVE1 profile charities and it tends to be the charities or worthy causes as they call them, that are the most attractive that receive the most contributions. Intrinsically business owners understand the power of attraction and they tend to go with non-profit causes that have the best story rather than look at their direct rating. They intrinsically know that their customers will connect with a better story and not ever think about a charities rating.
Maple Muesli in Australia has partnered with Midday Meals in Mumbai, India. With every bag of muesli bought, a hungry child in India is fed. Midday Meals is a charity that feeds 125,000 Mumbai children every day for just US 30 cents per meal. The meals are provided in schools to keep kids off the streets and encourage learning while reducing begging and child abuse.
The company has managed to advertise the worthy cause of the charity Midday Meals in Australia. The inspiring story is continuously shared by Maple Muesli with all their buyers which has resulted in increased rating for the institution of Midday Meals in Mumbai, though all that the charity does is provide a daily lunch for those needy children. This is the era of Effective Giving – The sun has almost set on the Era of Plain Charity Donations.
A change is impending in the setting of the top 100 charities and would become visible in a few years as more novel and productive ways of charitable giving take shape. Nowadays only limited choices exist for making donations for charitable purposes. All the existing ones are not good enough to create enough difference.
Other methods of 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
WAY TO GIVING: DIRECT GIVING
One of the Top 100 charities in the world – The Salvation Army is a charity that individuals and businesses often donate to directly.
OPENNESS – B – Not sufficiently open – Plenty of money is being collected – but the results are not always completely clear.
ADVANTAGE TO BUSINESS – C – Even a single donation to Salvation Army by a business might find mention in the press.
EXPENSES FOR RAISING FUNDS -B – Heavy expenses are incurred for raising funds.
DONOR’S CHOICE OF CHARITY – B – There are many charities and the contributors can decide to which one they would like to give directly.
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 that enters into partnership with companies, which then creates products with its logo, a percentage of which goes to fighting AIDS, TB and Malaria in Africa.
TRANSPARENCY – B – Lack of transparency – sum of money is contributed for every purchase – but result is not fully measurable.
ADVANTAGE TO BUSINESS – A – People and enterprises by and large prefer to support it as it is promoted by popular idols like Bono and Oprah. End result of marketing is not correctly available.
COSTS OF FUNDRAISING – C -Simply splurges money on advertising – it would be far better if that money is sent directly to Africa.
DONORS’ CHOICE POTENTIALS – C – Enterprises that partner with them have limited options in where their money should go – all needs are in Africa.
ABILITY FOR EFFECTING A CHANGE – B – All those who collaborate with Products (RED) are big enterprises and all the income is spent on Africa.
THE BODY SHOP
WAY 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.
FUNDRAISING COSTS – A – Lower costs – Successful business model that makes donations and boosts community trade.
DONORS’ CHOICE POTENTIALS – A – Ventures that donate has the option to decide in what way their donations are to be used.
POTENTIAL FOR REAL GLOBAL CHANGE – B – Businesses’ giving back is great – but very few take the added effort to push for change like Body Shop.
LIVE EARTH
WAY TO GIVING: EVENT FUNDRAISING
Live Earth consisted of a string of global musical programmes which set in motion a three-year campaign to battle climate change and was held on July 7, 2007.
TRANSPARENCY – F – According to Intelligent Giving, there were big questions about accountability as to where the proceeds of ticket sales went.
MARKETING VALUE TO BUSINESS – B – Business sponsors got good coverage – but it was only a one time event and it is not easy to test and measure results.
COSTS OF FUNDRAISING – C – Huge amounts were spent on advertising and according to some the whole event was a damp squib without any actual goals.
CONTRIBUTORS’CHOICE OF CHARITY – C – Only three charities received funds.
PROMISE FOR GLOBAL CHANGE – C – Such events can be held just once or at the most once a year. The amount collected generally goes to better known charities.
Buy1GIVE1 (B1G1)
ROUTE TO GIVING: SOCIAL ENTERPRISE
B1G1 is a brand licensed to collaborate with any enterprise – uniting them with any cause across the globe. A fully comprehensive model.
CANDOUR – A – By giving for particular causes, makes sure that funds go exactly for that which it is intended. Customers get information on how exactly their money has made a change – i.e. the children whom it helped, or the environmental cause it protected.
ADVANTAGE TO BUSINESS – A+tve – Outstanding marketing value due to:
* Measurable giving * Media attraction * Good stories * Word of mouth * Repeat customers
FUNDRAISING COSTS – A+tve – Zero costs – B1G1 can take care of a charity’s fundraising needs including a large percentage of admin as well. 100% of funds received go to the charity.
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.
POTENTIAL FOR REAL GLOBAL CHANGE – A – Exponential. If more businesses partner charities globally, the potential for real change is massive.
You Might Think Giving away Money Would Be simple!”
Giving away money appears simple on the face of it – it just involves pulling out notes or writing a cheque or punching in a credit card. But reality is a bit different. George Sores, who has donated billions to charity, insists that effective giving is a very complicated business. Underdeveloped nations receive a lot of money in aid year after year but the changes effected do not seem to be proportionate.
People asking smarter questions will bring about the needed change. Social Entrepreneurs like Mohamed Yunis, Nobel Prize winner, creating innovative solutions to poverty and environmental issues with Micro Finance are carving the way to a new future where business initiatives, social enterprise and conscious consumerism transform our world. Initiatives like The Body Shop’s ‘Trade – Not Aid’ need to be replicated. New ideas like Buy1GIVE1 need to be embraced. The value of social enterprise needs to be recognised.
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
Adopt a questioning mind, hop onto a wired laptop, and with a few hours to spare look at some of the new and amazing giving systems that are being created. Most of these new systems are network based and driven from the Internet.
As of now if one is not connected with good international networks via the internet, the chances of losing out are substantial even with good charity rating, tomorrow things are bound to change – totally.
Lots of companies nowadays make their appearance out of nowhere and are sold a few years later for billions of dollars. This was a scenario that would have been considered impossible a decade ago. But today this is a normal phenomenon. What every one of these internet companies primarily do is to tap into global networks or even perhaps create one themselves.
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.
If you are not forging an alliance with Buy1GIVE1 and encouraging your business sponsors to become Buy1GIVE1 members you will be missing our more and more as this amazing enterprise makes a huge impact in the world of giving.
The dawn of a new age in charity giving
Institutions that no one had heard about even a few months ago, are today bombarding the cyber world with booming user acceptance. People strongly prefer have a place on sites like Facebook, MySpace, Twitter, YouTube, NING or TipJoy. One should also create strong bonds with companies like Buy1GIVE1, Kiva or The Present. These are the realities of the future which are imperative for sustaining and building charity ratings. Now is the chance to fashion an ideal new future.
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