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 the general public are swayed so much by the charity ratings the press and media give, a brand new charity can flourish very quickly with a flood of charitable giving being thrown its way. And of course when the media lose interest, then the charity rating can drop out of the sky overnight.
Directory listings 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!
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.
So if you want to find the 100 top charities then there are so many charity rating guides out there and yet maybe charity ratings are actually about something else. What makes a charity stand above the rest often has nothing to do with its ratings at all. There are special ingredients that make any charity or non-charity organisation successful.
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 Critics’ Warnings are profuse
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 analyses reveal that just the cost of raising funds could amount to about’% in UK and 20% in Australia. The studies of the Association of Fundraising Professionals in USA put the amount to be about 30%. Administrative expenses are in addition to this and could be higher. Many charity givers find that this is the main problem, more so when charity giving grabs media attention as was the case in Singapore a couple of years ago. Such unwelcome focus becomes conducive to a decrease in charity giving which is quite unpleasant.
Charity ratings mystery revealed
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.
To increase the charity rating as well as attract better flow of funds the secret can be found in a single word – attraction.
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 factors that make Charity Water quite fascinating and promote its rating are the following.
* They have the perfect name – Charity Water that makes people easily respond to the obvious passion of the founder to the idea, and his eagerness to share it with others.
* They had a simple, single and clear message and mission – sell water 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.
All we have to do is see ourselves with our own kids and understand how we easily answer in the affirmative when they request for things in an eager and happy and excited way. But when they prefer to make their demands in a peevish or weepy way, we may tend to refuse.
The images that a charity uses will affect its charity ratings. Using uplifting and inspiring images will uplift and inspire people. Uplifted and inspired people give more and spend more.
Social Enterprises improve Charity Ratings and solve the problems in Getting Funds
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.
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 comparatively new global social venture, Buy1GIVE1, also known as B1G1 (Buy 1 Give 1), combines commercial activities with noble causes and charity organisations across the globe. Buy1GIVE1 has reduced the costs of administration and fundraising so completely that it is able to give away the whole of the funds it gets. It functions in a way quite similar to online enterprises like Kiva.org, which has been given support by Bill Clinton; Buy1GIVE1 is a substitute for the conventional style of direct giving to charities. Lots of people find them a more practical way for making donations while receiving valuable things in return.
Successful businessmen, who are searching for a chance to give back richly to the society and to provide for deserving charities, fully understand the importance and properly structured working credos of institutions like Buy1GIVE1. Every single sale is able to affect a change somewhere – not only altruistically. It has also the ability to forcefully influence things in such a way that each act becomes a unique marketing story. There is a world of difference in the way in which Buy1Give1 works and those charities which give away thousands and thousands of dollars work, because Buy1Give1 lets their customers know what the joy o f giving is. Buy1Give1 transaction-based giving is a perfectly beautiful way of 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.
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.
Maple Muesli has helped to put Midday Meals on the map as a worthy and well-rated cause in Australia. Maple Muesli share their giving story with all their customers increasing the natural rating of this amazing organisation in Mumbai without Midday Meals doing anything other than feed children. Effective Giving – The Era for Plain Charity Donations is ending
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 choices in Charity Ratings
Newer and varied ways of gifting things to others are rated and featured in the table given below. These are Charity Comparison Data.
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
PATH 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.
TRANSPARENCY – B – Lack of transparency – Sum of money is contributed – but result is not fully measurable.
BENEFIT FOR THE BUSINESS – C – Contribution to Salvation Army gets mention in the press even if it is a one time contribution.
COSTS OF FUNDRAISING – B – Huge amounts are spent every year 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.
POTENTIAL FOR REAL GLOBAL CHANGE – C- Nothing new to offer in terms of market change.
PRODUCT (RED)
ROUTE TO GIVING: MARKETING CAMPAIGN
Product (RED) is a brand licensed to collaborate with companies, and collect money for their Global Fund to Fight AIDS, Malaria and Tuberculosis in Africa
CANDOUR – B – Insufficient candour – Lots of money is donated – but result is not completely quantifiable.
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.
DONORS’ CHOICE POTENTIALS – C – Enterprises that partner with them have limited options in where their money should go – all needs are in Africa.
POTENTIAL FOR REAL GLOBAL CHANGE – B – Products (RED) only partner huge companies and all their profits go to Africa.
THE BODY SHOP
WAY TO GIVING: BUSINESS TRADE & GIVING
The Body Shop is involved in community trade to help economically backward countries and makes large donations to causes from the profit they generate.
TRANSPARENCY – B – Lack of transparency – sum of money is contributed for every purchase – but result is not fully measurable.
MARKETING VALUE TO BUSINESS – A-tve – Customers are happy to be involved in community trade and are motivated to buy more. Visibility could be a lot better.
FUNDRAISING COSTS – A – Lower costs – Successful business model that makes donations and boosts community trade.
DONOR’S CHOICE OF CHARITY – A – Enterprises are at liberty to choose where their contributions should go.
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
PATH 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 benefitted by the good press coverage, though by being a single occurrence results were not properly assessable.
FUNDRAISING COSTS – C – Spent millions of dollars on advertising on what some say was an unsuccessful event, which had no real goals.
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 any business – partnering them with any charity anywhere in the world. A truly global concept.
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:
* Quantifiable giving * Press coverage * Valuable stories * Individual to individual * Continuing customers
COSTS OF FUNDRAISING – A+tve – Absolutely no cost – B1G1 can oversee a charity’s needs for raising funds and also manage much of the administration as well. So the funds go entirely to the charity.
DONORS’ CHOICE POTENTIALS – A – Businesses have the option of choosing a particular project to donate to, or give to a worthy cause of their choice like feeding, knowledge training 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 Might Think Giving away Money Would Be simple!”
Donating money may not seem to be a difficult job – it is just a question of handing over some money as cheque, cash or via the credit card. Still, someone like George Sores, who is as generous a donor as could be, agrees that effectual giving is no cakewalk. Underprivileged communities and countries receive millions of dollars in aid and still the situation remains much the same year after year.
People make changes by asking probing questions about the problems they find in front of them. The winner of the Nobel Peace Prize, Mohammed Yunus, by his introduction of the new category of banking known as Microfinance has made groundbreaking achievements in solving social problems and is leading the way in showing how social enterprise and consumption of goods can positively change the world. Other such ideas worth emulating are that of Buy1GIVE1 or ‘Trade – Not Aid’ of The Body Shop. The overwhelming importance of social enterprise has to be fully appreciated.
Bill Gates, when asked how one can make a difference in the world, pointed to the Internet. Kiva.org and Buy1GIVE1 (www.b1g1.com) are organisations that add value to the giver. With Kiva.org, people can receive email journal updates from the business they have sponsored. This happens with Buy1GIVE1 as well. Businesses also get the added benefit of marketing stories to tell their customers: buy a laptop with us, and we give one computer to someone who cannot afford it.
Other methods for improving 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.
The present situation is that if a venture is not allied online with global networks of good standing, it stands to lose quite a lot whatever its charity rating is, by tomorrow things are likely to change — completely.
There are more and more examples these days of companies rising up from nothing and being sold three years later for over a billion dollars. This was unheard of ten years ago. Today this is becoming a regular occurrence. All these new Internet companies are doing one thing – tapping into global networks or creating global networks.
Buy1GIVE1 (Buy One Give One)
Buy1GIVE1 is a relatively new Social Enterprise founded by a Japanese lady called Masami Sato in’97. Today any business anywhere in the world can be a Buy1GIVE1 member, with membership for small businesses only costing $1 per day and contributions starting from just 1c per sale. Buy1GIVE1 is leading the Buy One Give One transaction-based giving global movement. Working with Buy1GIVE1 is easy for a charity worthy cause or a business. Their model is unique, flexible and inspiring. A business simply marries any or all of its products or services with a charity project (Buy1GIVE1’s or their own) and then every time they sell something record the sale and pay their contribution each month or quarter direct to their cause 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
Companies that had no presence a few months ago are ravaging cyberspace with the echo of user acceptance. Services life Twitter , Facebook , MySpace , YouTube, NING and TipJoy are places you must have a presence in. Organisations like Change The Present, Kiva and companies like Buy1GIVE1 you should be building relationships with. These are all the new future and will all help maintain and build charity ratings. Today is a new opportunity to build a new future.
Discover more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing. You are welcome to reprint this article – but get your own unique content version here.