Building Up The Unpredictable Charity Ratings

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.

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.

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.

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 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 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.

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 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.

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 an object and would like to buy it, or make an investment in it, or want to connect with it, we tend to take a decision on the basis of how tempting it is to us. If it is very appealing, we might instantly buy it or plan to get it but if it is not all that tempting, we would definitely postpone the idea.

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.

* 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

* The message and objective are clear, straightforward and singular - 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 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.

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 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 socially conscious businessmen may find the ambience 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.

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.

Businesses like Buy1GIVE1 profile charities and it tends to be the charities or worthy causes as they call them, that are the most attractive that receive the most contributions. Intrinsically business owners understand the power of attraction and they tend to go with non-profit causes that have the best story rather than look at their direct rating. They intrinsically know that their customers will connect with a better story and not ever think about a charities 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.

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 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.

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

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.

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.

EXPENSES FOR RAISING FUNDS -B - Heavy expenses are incurred for raising 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.

POTENTIAL FOR REAL GLOBAL CHANGE - C- Nothing new to offer in terms of market change.

PRODUCT (RED)

WAY 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.

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.

EXPENSES FOR RAISING FUNDS - C - Spends huge sums of money on advertisements - giving that money directly to Africa would have been more practical.

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.

CANDOUR - B - Insufficient candour - Lots of money is donated - but result is not completely quantifiable.

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.

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.

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 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.

ADVANTAGE TO BUSINESS - B - The sponsors of the business benefitted by the good press coverage, though by being a single occurrence results were not properly assessable.

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.

DONOR'S CHOICE OF CHARITY - C - Only three charities could manage to get 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 )

ROUTE 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.

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.

ADVANTAGE TO BUSINESS - A+tve - Outstanding marketing value due to:

* Measurable giving * Media attraction * Good stories * Word of mouth * Repeat 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.

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.

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!"

Giving away money appears simple on the face of it - it just involves pulling out notes or writing a cheque or punching in a credit card. But reality is a bit different. George Sores, who has donated billions to charity, insists that effective giving is a very complicated business. Underdeveloped nations receive a lot of money in aid year after year but the changes effected do not seem to be proportionate.

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.

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.

Next steps to increasing your Charity Ratings

Ensure that you have an inquisitive mind, and remain connected to a computer, and spare some time to find out about the new types of charities and how they function. These programs are mainly based on networking and work through 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.

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.

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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