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.
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!
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.
The fact is that there are enough guides that provide information about 100 top ranking charities but these ratings does not, in reality, convey the correct picture. The ratings of a charity has actually nothing much to do with what actually makes it superior to the rest. There are unique features that place a charity or non-charity institution above the rest.
Charity Ratings and faith 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
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 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.
In order to get the funds necessary for functioning, as well as to improve the charity ratings, there is only one assured way - make it tempting.
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 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
* Their focus was on how to solve the problem and not the problem itself. It is important for charities to properly define their focus if they want people to rate them highly. No one has interest in getting their attention turned to the unpleasant things in life. People want a positive focus. So when they are told that they can make a positive change in the lives of others by buying a bottle of water they feel happy.
How to let Charity Ratings plummet in a second
The quickest and easiest way to lose attraction or attractiveness and thus your ratings is by focusing on the problem. No one wants to listen to anyone complaining how bad things are. Yet everyone will listen to someone who has high energy, enthusiasm, drive and determination to create something better.
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 Enterprises improve Charity Ratings and solve the problems in Getting Funds
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 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.
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.
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.
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 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.
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
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.
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)
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.
DONORS' CHOICE POTENTIALS - C - Enterprises that partner with them have limited options in where their money should go - all needs 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
PATH 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.
OPENNESS - B - Not sufficiently open - Plenty of money is being collected - but the results are not always completely clear.
ADVANTAGE TO BUSINESS - A-tve - Clients are by and large happy to become part of the community trade and are encouraged to buy more - the enterprise could afford to be more visible.
EXPENSES FOR RAISING FUNDS - A - Costs are kept low - Business design is good enough to attract large contributions and further community trade.
DONORS' CHOICE POTENTIALS - A - Ventures that donate has the option to decide in what way their donations are to be used.
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.
OPENNESS - F - Intelligent Giving had reported that the takings from the concert tickets sales were not accounted satisfactorily.
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.
CONTRIBUTORS'CHOICE OF CHARITY - C - Only three charities received funds.
PROMISE FOR GLOBAL CHANGE - C - Such events can be held just once or at the most once a year. The amount collected generally goes to better known charities.
Buy1GIVE1 (B1G1 )
WAY TO GIVING: SOCIAL ENTERPRISE
B1G1 is a brand licensed to form a partnership with any business - connecting them with any worthy cause in any place. A truly universal precept.
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).
BENEFIT FOR THE BUSINESS - A+tve - Superb marketing value as a result 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.
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.
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 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.
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.
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.
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.
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'97. 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 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 epoch 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.
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