How To Improve The Inconsistent Charity Ratings

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.

Because of the power the mass communication media have over the people, when a charity is in the good books of the media, it expands very quickly and manages to get a lot of charitable giving. By that same yardstick, when media do not have much interest in propping up a given charity, its rating also plummets in the same proportion.

Directory lists of charity rating

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 trust in the public

According to a YouGov poll of 2005, even well known charities like Save the Children and Oxfam did not enjoy a high amount of faith by the majority of the British population amounting to 56%. The public seemed to have faith only in about 15% of the charities even among those that had good charity ratings.

Charity Critics’ Warnings are profuse

Trust in charities has dropped a lot in recent times. Yet who can blame the public. Charity watchdogs tell unsettling stories of very highmanagement salaries, charities taking as much as 60% of donations for overheads with their being little left for the actually charitable 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 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 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 was exceptionally successful in getting media backing and good charity rating because of their appealing idea. The scheme of charging a good price for a bottle of charity water, and using the profits thereof for getting clean water to areas where it was not available, was a fascinating idea that appealed to all.

The elements making up the attractiveness for Charity Water and boosting it’s ratings are quite obvious.

* 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

* 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 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.

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 images that a charity uses will affect its charity ratings. Using uplifting and inspiring images will uplift and inspire people. Uplifted and inspired people give more and spend more.

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.

The medium of a conventional business enterprise may not be suitable for many businessmen whose ideas of ethics and integrity would be contrary to the way decisions are made in a commercial world. Such people use a social enterprise to use their acumen and ability to create a profit and effect great changes in the social arena. A typical example of such a social entrepreneur is Muhammad Yunus who won the Nobel Peace Prize in 2006 for his rich contributions to improving social conditions.

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.

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.

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.

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.

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

WAY 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.

TRANSPARENCY – B – Lack of transparency – Sum of money is contributed – but result is not fully measurable.

ADVANTAGE TO BUSINESS – C – Even a single donation to Salvation Army by a business might find mention in the press.

COSTS OF FUNDRAISING – B – Huge amounts are spent every year 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 licensed to collaborate with companies, and collect money for their Global Fund to Fight AIDS, Malaria and Tuberculosis in Africa

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

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.

CONTRIBUTORS’CHOICE OF CHARITY – C – Partner businesses do not have much choice in the charities that receive their contributions – all are in Africa.

PROMISE FOR GLOBAL CHANGE – B – All partners of Products (RED) are huge ventures and the entire profit is spent on helping people of 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.

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.

FUNDRAISING COSTS – A – Lower costs – Successful business model that makes donations and boosts community trade.

DONOR’S CHOICE OF CHARITY – A – Enterprises are at liberty to choose where their contributions should go.

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.

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 )

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.

BENEFIT FOR THE BUSINESS – A+tve – Superb marketing value as a result of:

* Quantifiable giving * Press coverage * Valuable stories * Individual to individual * Continuing 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.

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!”

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.

When queried as to how someone can effect a change in the world, Bill Gates pointed towards organisations like Buy1GIVE1 (www.b1g1.com) and Kiva.org which reward the giver richly. Kiva.org ensures that those who sponsor a business get regular updates via email from those businesses. Buy1GIVE1 also ensures this. With such communication, customers get a clear picture and come to know the stories behind the charities. For example, when they buy a laptop, someone who badly needs a computer might be getting it at some other corner of the world.

Other methods for improving 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.

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.

Lots of companies nowadays make their appearance out of nowhere and are sold a few years later for billions of dollars. This was a scenario that would have been considered impossible a decade ago. But today this is a normal phenomenon. What every one of these internet companies primarily do is to tap into global networks or even perhaps create one themselves.

Buy1GIVE1 (Buy One Give One)

Buy1GIVE1 is a comparatively new Social Enterprise established in 1997 by a Japanese lady named Masami Sato. Today any business globally can be a member of Buy1GIVE1. The membership fee for smaller enterprises is as low as $1 for a day. Contributions can also be as low as one cent on a sale made. Buy1GIVE1 is spearheading the Buy One Give One transaction-based giving global movement. For any enterprise or charity requirement, working jointly with Buy1GIVE1 is very simple. It is perfectly structured and accommodating enough to adjust to the requirements of its partners. An organisation can connect its products or services with any charity endeavour (Buy1GIVE1’s or their own) and each time a sale is made, the sale has to be recorded and the input paid at the end of a specific period. The amount can be sent through Buy1GIVE1 or directly to the concerned charity.

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

Institutions that no one had heard about even a few months ago, are today bombarding the cyber world with booming user acceptance. People strongly prefer have a place on sites like Facebook, MySpace, Twitter, YouTube, NING or TipJoy. One should also create strong bonds with companies like Buy1GIVE1, Kiva or The Present. These are the realities of the future which are imperative for sustaining and building charity ratings. Now is the chance to fashion an ideal new future.

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