By David Anttony
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 scepticism running quite high with charity watchdogs pinpointing charity problems such as misconduct, having exceptionally high amounts of funds spent on admin or the misappropriation of funds, charity rating directory lists are flourishing. It's so funny that philanthropic organizations that set out to give to others are now under the eye of charity watchdogs. Philanthropy is becoming a little complicated!
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 belief 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 Critics' Warnings are profuse
Trust in charities has dropped a lot in recent times. Yet who can blame the public. Charity watchdogs tell unsettling stories of very highmanagement salaries, charities taking as much as 60% of donations for overheads with their being little left for the actually charitable 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 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.
To promote the charity rating and also to ensure better cash flow, there is a one and only formula - enticement.
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 is highly attractive and hence why it's charity-rating sky rocked so quickly and the media got behind the idea. The simple idea of selling a bottle of charity water for a premium price with the extra profit been giving as a donation to the needy to access clean water was highly attractive.
The factors that combine to make Charity Water so enticing, making it popular, are easily decipherable.
* 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.
* The message and objective are clear, straightforward and singular - sell water and 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 instantly reduce one's Charity Ratings
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.
To prove this, all we have to do is look at ourselves in the company of our kids and know how our response is positive when children make a request in an exuberant, polite and eager manner. The same request, if made in an irritating or maudlin way, might elicit a negative response.
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 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.
Many socially conscious businessmen may find the ambience 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.
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.
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.
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.
In a matter of a few years, changes are bound to happen in the background of the top 100 charities as more inventive and effectual ways of giving originate. The current scenario offers very few choices on how to give for a charitable purpose. All the available ones are not good enough to make a dent in the existing problems.
Other choices in Charity Ratings
Methods of charity have changed over the years and newer ways are making their presence, some of which are rated below. Comparison Points of Charity.
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
The Salvation Army is one among the most well-known 100 charities of the world - Both individuals and enterprises make contributions directly to it.
CANDOUR - B - Insufficient candour - Lots of money is donated - but result is not completely quantifiable.
MARKETING VALUE TO BUSINESS - C - Businesses' one-off contributions to Salvation Army may be mentioned 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.
POTENTIAL FOR REAL GLOBAL CHANGE - C- Nothing new to offer in terms of 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.
OPENNESS - B - Not sufficiently open - Plenty of money is being collected - but the results are not always completely clear.
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.
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.
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
ROUTE 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.
TRANSPARENCY - B - Lack of transparency - sum of money is contributed for every purchase - but result is not fully measurable.
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.
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 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.
BENEFIT FOR THE BUSINESS - B - It was beneficial to business sponsors as they got good media coverage, but as it was a single event results are not easily measurable.
FUNDRAISING COSTS - C - Spent millions of dollars on advertising on what some say was an unsuccessful event, which had no real goals.
DONOR'S CHOICE OF CHARITY - C - Only three charities could manage to get funds.
POTENTIAL FOR REAL GLOBAL CHANGE - C - These events are usually held one-off or annually. Money is often given to larger, more established 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.
MARKETING VALUE TO BUSINESS - A+tve - Great marketing value because 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.
POTENTIAL FOR REAL GLOBAL CHANGE - A - Exponential. If more businesses partner charities globally, the potential for real change is massive.
You Would Think Giving away Money Would Be Easy!"
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.
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 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.
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.
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.
You could be losing out a lot if you are not interested in forming an association with Buy1GIVE1and not persuading your business patrons to do so. Buy1GIVE1 is a unique and brilliant organisation whose impetus as well as global impact is huge.
A new era of 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.