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.
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!
Givespot.com, Guidestar.org etc. are institutions that give a detailed list of charity ratings. The list of Givespot.com is known as GiveSpot 100 list, which gives a list of charities that are rated as the top 100. Then there are other institutions like charitynavigator.org which has a charity check systems and also gives a list of the Top Ten charities so that searching for a charity becomes easy. The biggest US charity directory is Guidestar.org and it offers a wide range of charity information some of which is available for free while some of the data require payment. In USA Better Business Bureau is also a charity directory that provides a list of non-profit institutions as well as commercial enterprises.
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
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 Warning Bells are more common
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.
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 mystery revealed
There is little difference between businesses and charities when it comes to attracting money. Their end use of the money is of course different, but their special secrets to attracting it in the first place are much 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 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 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 let Charity Ratings plummet in a second
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 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
A new business model emerged a few years ago called Social Enterprise . This in a way is a hybrid mix between a charity and a business. Some entrepreneurs want to tackle social issues but they do not find the charity model effective or attractive enough.
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.
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.
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.
Other methods of 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.
Rating and comparison has been done on some better known and lesser known charities and Social Enterprises on issues that concern those who donate to these.
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.
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.
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.
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.
FUNDRAISING COSTS - C - Spends hundreds of millions of dollars on advertising - could have just given that money to Africa.
CONTRIBUTORS'CHOICE OF CHARITY - C - Partner businesses do not have much choice in the charities that receive their contributions - all 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 engages in community trade helping Third World countries; and makes huge donations to charities from their profits.
CANDOUR - B - Insufficient candour - Lots of money is donated - but result is not completely quantifiable.
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 worldwide concerts held on 7 July 2007 that initiated a three-year campaign to combat climate change.
OPENNESS - F - Intelligent Giving had reported that the takings from the concert tickets sales were not accounted satisfactorily.
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.
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.
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)
WAY 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.
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:
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.
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 Would Think Giving away Money Would Be No Big Deal!"
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.
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 queried as to how someone can effect a change in the world, Bill Gates pointed towards organisations like Buy1GIVE1 (www.b1g1.com) and Kiva.org which reward the giver richly. Kiva.org ensures that those who sponsor a business get regular updates via email from those businesses. Buy1GIVE1 also ensures this. With such communication, customers get a clear picture and come to know the stories behind the charities. For example, when they buy a laptop, someone who badly needs a computer might be getting it at some other corner of the world.
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.
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 1997 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 era of 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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Find out more about how Buy1GIVE1 (BOGO ) can transform your business using Cause Marketing .
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