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.
As the public can be easily influenced by the charity ratings that the agents of mass media give, it is very easy for a completely new charity to grow very fast and be able to attract a wave of charitable donations to their side. For the same reason, when they become less popular with the media, their charity ratings also go down.
Charity rating directory listings
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!
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.
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
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 Watchdog Scares 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 18% 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 exposed
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 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 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 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
* They had a simple, single and clear message and mission – sell water 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 let Charity Ratings plummet in a second
The fastest way for a charity to lose its rating is by making itself less appealing by concentrating on the problem. People are hardly inclined to listen about all that negativity going on in the world. On the other hand, most people are ready to listen to sagas of vigour, eagerness, drive and dedication to fashion a better world.
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 ratings of a charity depend substantially on the image it projects in front of the public. With a motivating and inspiring image people will be swayed to its ideas. They will then be ready to contribute well to the cause of the charity.
Social Enterprise increases Charity Ratings and helps solve 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 social entrepreneurs would never survive in traditional business because their ethical and moral values would always be in conflict with many of the business decisions made. Social Enterprise is a perfect arena for these very inspiring and valuable individuals who choose to use the business vehicle to effect social and global change. One of the most famous Social Entrepreneurs of course is Muhammad Yunus who was the first businessperson ever to be awarded the Nobel Peace prize in 2006.
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.
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 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
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.
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
ROUTE 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.
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.
FUNDRAISING COSTS – B – Spends millions of dollars annually to raise funds.
CONTRIBUTORS’CHOICE OF CHARITY – B – For direct giving, you can have a lot of charities to check out before settling which one is best.
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 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.
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
PATH 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.
OPENNESS – B – Not sufficiently open – Plenty of money is being collected – but the results are not always completely clear.
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.
EXPENSES FOR RAISING FUNDS – A – Costs are kept low – Business design is good enough to attract large contributions and further 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.
TRANSPARENCY – F – According to Intelligent Giving, there were big questions about accountability as to where the proceeds of ticket sales went.
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.
CONTRIBUTORS’CHOICE OF CHARITY – C – Only three charities received funds.
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.
TRANSPARENCY – A – One for one giving ensures funds given are used for what they were intended. Customers know their giving translates into real change (e.g. numbers of trees planted, numbers of children fed).
MARKETING VALUE TO BUSINESS – A+tve – Great marketing value because of:
* Calculable giving * Media interest * Effective stories * Person to person * Returning 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.
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.
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 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.
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.
Many enterprises emerge out of thin air nowadays and grow enough in the matter of maybe three years to be sold for more than a billion dollars. This was unconceivable ten years ago, though today it has become a routine state of affairs. All these online enterprises are doing the same thing – drawing on international networks or themselves making international networks.
Buy1GIVE1 (Buy One Give One)
Buy1GIVE1 is a relatively new Social Enterprise founded by a Japanese lady called Masami Sato in 1997. 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.
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.