By David Anttony
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 listings of charity rating
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!
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 trust 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
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 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 made it to the top of the chart in charity rating and got media support because of its unique and attractive image. The way they sold a bottle of charity water for the best price and projected the idea of using the profit for making clean water accessible to those who required it was very enticing.
The elements making up the attractiveness for Charity Water and boosting it's ratings are quite obvious.
* 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.
* Their idea of the vocation and their message is lucid, plain and remarkable - 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 increases Charity Ratings and helps solve Fundraising Problems
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 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.
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.
All ventures like Buy1GIVE1 particularize charities and these are mostly charities where help is considered to be fully necessary, with enough potential to attract contributions. Businessmen obviously understand how poignant situations attract customer interest and as such they tend to support such causes rather than give importance to the organisation's rating. They are only too conscious of the customers' proclivity to bond better with a stronger story than worry about charity 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.
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
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.
Some better known and not so well-known charities as well as Social Enterprises are evaluated and rated below so as to be of help to those who contribute to these.
THE SALVATION ARMY
WAY 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.
MARKETING VALUE TO BUSINESS - C - Businesses' one-off contributions to Salvation Army may be mentioned in the press.
FUNDRAISING COSTS - B - Spends millions of dollars annually to raise funds.
DONORS' CHOICE POTENTIALS -B- For those who want to give directly, there are plenty of charities to choose from.
ABILITY FOR EFFECTING A CHANGE -C - Nothing specific in the activities that is likely to bring about a 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.
CANDOUR - B - Insufficient candour - Lots of money is donated - but result is not completely quantifiable.
BENEFIT FOR THE BUSINESS - A - Popular among business ventures as well as people as it is supported by charismatic personnel like Bono and Oprah Winfrey. Marketing results are however not fully traceable.
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
ROUTE 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.
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.
CONTRIBUTORS'CHOICE OF CHARITY - A - Businesses can choose where their money goes.
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 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.
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.
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.
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.
BENEFIT FOR THE BUSINESS - A+tve - Superb marketing value as a result of:
* Quantifiable giving * Press coverage * Valuable stories * Individual to individual * Continuing 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.
DONOR'S CHOICE OF CHARITY - A - Any donor can contribute to a specific charity, or they can insist on giving to specific causes such as food, environment, or instruction.
ABILITY FOR AFFECTING A CHANGE - A - Infinite. If increasing number of businesses can team up with charities worldwide, the possibility for real change is boundless.
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.
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.
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
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 comparatively new Social Enterprise established in'97 by a Japanese lady named Masami Sato. Today any business globally can be a member of Buy1GIVE1. The membership fee for smaller enterprises is as low as $1 for a day. Contributions can also be as low as one cent on a sale made. Buy1GIVE1 is spearheading the Buy One Give One transaction-based giving global movement. For any enterprise or charity requirement, working jointly with Buy1GIVE1 is very simple. It is perfectly structured and accommodating enough to adjust to the requirements of its partners. An organisation can connect its products or services with any charity endeavour (Buy1GIVE1's or their own) and each time a sale is made, the sale has to be recorded and the input paid at the end of a specific period. The amount can be sent through Buy1GIVE1 or directly to the concerned charity.
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.
The dawn of a new age 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.
