Wednesday, January 28, 2009

How to improve the inconsistent 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.

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 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.

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

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 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 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 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 make Charity Water quite fascinating and promote its rating are the following.

* 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 instantly reduce one's Charity Ratings

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.

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 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.

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.

Buy1GIVE1 commonly known as B1G1 (Buy 1 Give 1), is a global organisation that is a recent entrant into the world of charitable giving. It is a perfect blend of business and valuable causes functioning at the global level. Buy1GIVE1 has so minimised its expenses of fundraising and management that it is able to give for charity all the funds collected. The institution is similar in its attributes to the online organization Kiva.org, which has been promoted by Bill Clinton; unlike conventional charities, Buy1GIVE1 involves direct giving to charities. Many people are convinced that it is a better way for contributing things and receiving richly 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.

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.

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 helped to put Midday Meals on the map as a worthy and well-rated cause in Australia. Maple Muesli share their giving story with all their customers increasing the natural rating of this amazing organisation in Mumbai without Midday Meals doing anything other than feed children. Effective Giving - The Era for Plain Charity Donations is ending

In a matter of a few years, changes are bound to happen in the background of the top 100 charities as more inventive and effectual ways of giving originate. The current scenario offers very few choices on how to give for a charitable purpose. All the available ones are not good enough to make a dent in the existing problems.

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.

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

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.

DONOR'S CHOICE OF CHARITY - B - There are many charities and the contributors can decide to which one they would like to give directly.

PROMISE FOR GLOBAL CHANGE -C- No potential noticed for bringing about a market change.

PRODUCT (RED)

PATH 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.

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.

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

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.

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

ROUTE TO GIVING: EVENT FUNDRAISING

Live Earth consisted of a string of global musical programmes which set in motion a three-year campaign to battle climate change and was held on July 7, 2007.

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.

FUNDRAISING COSTS - C - Spent millions of dollars on advertising on what some say was an unsuccessful event, which had no real goals.

CONTRIBUTORS'CHOICE OF CHARITY - C - Only three charities received funds.

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.

OPENNESS - A - The one for one style of giving sees to it that the donors' money reaches the specific cause that it is meant to help. Donors are provided information on how exactly their money is being utilised - how many kids were fed or how many trees were planted.

MARKETING VALUE TO BUSINESS - A+tve - Great marketing value because of:

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

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 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.

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

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.

Today if you are not linked in with powerful global networks through the Internet you are missing out and no matter what your charity rating is today, tomorrow things will change - radically.

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 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 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

Companies that had no presence a few months ago are ravaging cyberspace with the echo of user acceptance. Services life Twitter , Facebook , MySpace , YouTube, NING and TipJoy are places you must have a presence in. Organisations like Change The Present, Kiva and companies like Buy1GIVE1 you should be building relationships with. These are all the new future and will all help maintain and build charity ratings. Today is a new opportunity to build a new future.

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