How To Increase Charity Ratings

06.01.2010 | Author: David Anttony | Posted in Business

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!

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.

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 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

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

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 instantly reduce one\’s Charity Ratings

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

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 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.

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.

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.

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

PATH 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.

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

FUNDRAISING COSTS – B – Spends millions of dollars annually to raise 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)

ROUTE 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.

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.

COSTS OF FUNDRAISING – C -Simply splurges money on advertising – it would be far better if that money is sent directly 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.

POTENTIAL FOR REAL GLOBAL CHANGE – B – Products (RED) only partner huge companies and all their profits go to 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.

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.

COSTS OF FUNDRAISING – A -Comparatively low – It is a good business pattern that makes a lot of donations to charities and enhances community trade.

DONORS\’ CHOICE POTENTIALS – A – Ventures that donate has the option to decide in what way their donations are to be used.

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

ROUTE 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.

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.

EXPENSES FOR RAISING FUNDS – C – Substantial sums were spent on promotion of an event which was considered a fiasco by many as it did not have any proper objectives.

DONORS\’ CHOICE POTENTIALS – C – Funds were made available only to three charities.

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)

PATH 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:

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

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

You Would Think Giving away Money Would Be Easy!\”

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.

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.

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

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.

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 comparatively new Social Enterprise established in\’97 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 era of 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.

Discover more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing.

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