Charity ratings are a fickle thing with highly rated charities holding the number 1 position today being overtaken by new charities coming from nowhere. Charity Water is a recent and amazing example of this. Originality and the power of the Internet, are driving the ratings of brand new charities through the roof. A charity may not know today with a non-existent rating, but tomorrow it can be rated as number one by the New York Times as being the most amazing charity ever, and wham their rating goes from zero right to the top overnight.
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.
Charity rating directory listings
With steadily rising distrust and morality guardians of charity being ever suspicious of charity problems like transgression, having pretty large amounts of money spent on the running of charities or mishandling of funds, listings of charity ratings are booming. It is real quaint that humanitarian institutions that are meant for giving others are under the watchful eye of charity watchdogs. The whole idea of benevolence is getting a bit problematical!
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.
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 belief in the public
A YouGov poll of 2005 stated that about 56 percent of the British population did not have a considerable amount of belief even in well known global charities like Oxfam and Save the Children. Even among the charities that had a good charity rating, only about 15 percent enjoyed the public’s belief in them.
Charity Watchdog Scares 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.
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 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 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 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.
* 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 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 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
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.
Many socially conscious businessmen may find the ambiance 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 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.
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.
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.
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 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.
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.
Alternative 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.
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.
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)
PATH 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.
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 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.
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.
COSTS OF FUNDRAISING – A -Comparatively low – It is a good business pattern that makes a lot of donations to charities and enhances community trade.
CONTRIBUTORS’CHOICE OF CHARITY – A – Businesses can choose where their money goes.
ABILITY FOR EFFECTING A CHANGE – B – The ability of the business to give back to the society is good – still few make the required additional effort to press on for change.
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.
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.
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.
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:
* Measurable giving * Media attraction * Good stories * Word of mouth * Repeat 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.
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.
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.
Next steps to increasing 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.
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.
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 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
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.
Find out more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing.
