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.
Because the public are swayed so much by the charity ratings that the press and media give, a new charity can flourish very quickly with a flood of charitable giving thrown its way. And of course when the media lose interest then its charity rating can drop out of the sky overnight.
Charity rating directory listings
With skepticism running high with charity watchdogs highlighting charity issues such as misconduct, misappropriation of funds or charities having exceptionally high amounts of funds allocated to admin and overhead costs, charity rating directories are flourishing. Isn't it so funny that philanthropic organisations that set out to give to others are now 'watch-dogged' by other charity organisations. Philanthropy is now becoming quite complicated.
Organisations like Guidestar.org and Givespot.com show detailed non-profit charity ratings. Givespot.com has a detailed list called GiveSpot 100 list showing its top 100 charities. Other organisations like charitynavigator.org have charity check systems and a charity Top Ten list so that you look up a charity quickly. 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 , despite its name is also charity directory listing both business and non-profit organisations.
So if you want to find the top 100 charities then there are lots of charity rating guides out there and yet somehow charity ratings are about something else. What makes a charity stand out often has nothing to do with ratings at all. There are special ingredients that make any organisation successful.
Charity Ratings and trust
A 2005 YouGov poll found that a majority of the British population (56%) had only a 'fair amount' of trust in international charities like Oxfam and Save the Children . Only 15% of those surveyed had 'a great deal' of trust - even in the ones that do well in charity ratings. Charity Watchdog Scares
Faith in charities has fallen drastically in recent times. But who can blame the general public? Charity watchdogs give us unsettling stories of astronomical CEO salaries, charities gulping down as much as 60% of donations for overheads with little left for charitable giving, and massive global fundraising events whose funds disappear into thin air (Live Earth).
Studies show that the average costs of fundraising in the UK and Australia are 18% or 22% respectively. In America, the Association of Fundraising Professionals found the number to be around 30%. These figures do not even include administrative costs, which are often higher. Some charity givers see this as a major issue especially with charitable giving often in the media spotlight like it was in Singapore a couple of years ago. This additional negative focus directly reduces charitable giving which is never good. Charity ratings secret
Businesses and charities are no different when it comes to attracting money. Their end use of the money is of course different but their secrets to attracting it are the same.
To increase charity rating as well as attract more funds the secret lies in a single word : attraction.
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 elements making up the attractiveness for Charity Water and boosting it's ratings are quite obvious.
* 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
* 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 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.
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 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 increases Charity Ratings and helps solve Fundraising Problems
A new business model emerged a few years ago called Social Enterprise . This in a way is a hybrid mix between a charity and a business. Some entrepreneurs want to tackle social issues but they do not find the charity model effective or attractive enough.
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.
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.
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
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
Some of the new and different ways to give are highlighted and rated in the table below. Charity Comparison Points
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
One of the Top 100 charities in the world - The Salvation Army is a charity that individuals and businesses often donate to directly.
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.
FUNDRAISING COSTS - B - Spends millions of dollars annually to raise 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)
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.
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.
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.
TRANSPARENCY - B - Lack of transparency - sum of money is contributed for every purchase - but result is not fully measurable.
MARKETING VALUE TO BUSINESS - A-tve - Customers are happy to be involved in community trade and are motivated to buy more. Visibility could be a lot better.
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.
POTENTIAL FOR REAL GLOBAL CHANGE - B - Businesses' giving back is great - but very few take the added effort to push for change like Body Shop.
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.
TRANSPARENCY - F - According to Intelligent Giving, there were big questions about accountability as to where the proceeds of ticket sales went.
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.
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 )
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).
MARKETING VALUE TO BUSINESS - A+tve - Great marketing value because of:
* Measurable giving * Media attraction * Good stories * Word of mouth * Repeat customers
FUNDRAISING COSTS - A+tve - Zero costs - B1G1 can take care of a charity's fundraising needs including a large percentage of admin as well. 100% of funds received go 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!"
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 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.
Next steps to increasing 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.
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.
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 relatively new Social Enterprise founded by a Japanese lady called Masami Sato in 1997. Today any business anywhere in the world can be a Buy1GIVE1 member, with membership for small businesses only costing $1 per day and contributions starting from just 1c per sale. Buy1GIVE1 is leading the Buy One Give One transaction-based giving global movement. Working with Buy1GIVE1 is easy for a charity worthy cause or a business. Their model is unique, flexible and inspiring. A business simply marries any or all of its products or services with a charity project (Buy1GIVE1's or their own) and then every time they sell something record the sale and pay their contribution each month or quarter direct to their cause or through Buy1GIVE1.
If you are not forging an alliance with Buy1GIVE1 and encouraging your business sponsors to become Buy1GIVE1 members you will be missing our more and more as this amazing enterprise makes a huge impact in the world of giving.
A new era of 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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