Wednesday, January 28, 2009

How to improve the inconsistent charity ratings

By David Anttony

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.

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 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

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.

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 secret exposed

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 promote the charity rating and also to ensure better cash flow, there is a one and only formula - enticement.

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 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.

* They had a simple, single and clear message and mission - sell water 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 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.

We only need to observe ourselves with our own children and experience how when our children ask us for something in a fun and lively and enthusiastic way we just want to say yes. And when they ask us for the same thing in a whinging and whining way we say no very quickly.

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.

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 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.

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 of Australia has allied itself with a charity called Midday Meals in India, in the city of Mumbai. As a result when a packet of muesli is bought, a needy kid is given food in Mumbai. Since a simple meal is available there at the cost of 30 US cents, Midday Meals daily manages to feed about 125,000 kids. The charity feeds these children in schools and it helps substantially in protecting children from begging and other harsh realities and abuse of street life.

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.

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.

Alternative Charity Ratings

Newer and varied ways of gifting things to others are rated and featured in the table given below. These are Charity Comparison Data.

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

WAY 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.

OPENNESS - B - Not sufficiently open - Plenty of money is being collected - but the results are not always completely clear.

BENEFIT FOR THE BUSINESS - C - Contribution to Salvation Army gets mention in the press even if it is a one time contribution.

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 collaborate with companies, and collect money for their Global Fund to Fight AIDS, Malaria and Tuberculosis in Africa

TRANSPARENCY - B - Lack of transparency - sum of money is contributed for every purchase - but result is not fully measurable.

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

WAY 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.

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.

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

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.

CANDOUR - F - As per the reports of the site Intelligent Giving, satisfactory accounts were not produced on the proceeds from the sales of tickets.

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.

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)

WAY TO GIVING: SOCIAL ENTERPRISE

B1G1 is a brand licensed to any business - partnering them with any charity anywhere in the world. A truly global concept.

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

COSTS OF FUNDRAISING - A+tve - Absolutely no cost - B1G1 can oversee a charity's needs for raising funds and also manage much of the administration as well. So the funds go entirely 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.

POTENTIAL FOR REAL GLOBAL CHANGE - A - Exponential. If more businesses partner charities globally, the potential for real change is massive.

You Might Think Giving away Money Would Be simple!"

Donating money may not seem to be a difficult job - it is just a question of handing over some money as cheque, cash or via the credit card. Still, someone like George Sores, who is as generous a donor as could be, agrees that effectual giving is no cakewalk. Underprivileged communities and countries receive millions of dollars in aid and still the situation remains much the same year after year.

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 questioned on how one can bring about some positive global change, Bill Gates showed Kiva.org and Buy1GIVE1 (www.b1g1.com) as examples of charities that enrich the giver. Those who sponsor a business are updated by Kiva.org about the activities of the business. Buy1GIVE1 also does this. By this arrangement enterprises get enough stories to tell their clients - if they buy a laptop they will know that it will help in some needy person somewhere else getting a computer.

Other methods for improving 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.

The present situation is that if a venture is not allied online with global networks of good standing, it stands to lose quite a lot whatever its charity rating is, by tomorrow things are likely to change -- completely.

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 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 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. - 15784

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