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lundi 21 décembre 2009

Charity Ratings Are Unpredictable - How To Increase Rating

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 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!

Institutions like Givespot.com, Guidestar.org etc. provide comprehensive listings of charity ratings. GiveSpot 100 list is the list of the 100 highest ranking charities that is provided by Givespot.com. Another one that provides similar data is charitynavigator.com which has a list of the top ten charities as well a charity check system. Finding out charities is made easy by this. The biggest charity director of US is Guidestar.org with lots of free data on charity as well as information that can be availed for payment. Though its name gives a different impression, Better Business Bureau is a charity directory that gives a list of both commercial and non-profit ventures of USA.

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

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

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.

Recent analyses reveal that just the cost of raising funds could amount to about'% in UK and 20% in Australia. The studies of the Association of Fundraising Professionals in USA put the amount to be about 30%. Administrative expenses are in addition to this and could be higher. Many charity givers find that this is the main problem, more so when charity giving grabs media attention as was the case in Singapore a couple of years ago. Such unwelcome focus becomes conducive to a decrease in charity giving which is quite unpleasant.

Charity ratings secret revealed

There is practically no difference between a charity and a commercial enterprise when it comes to the question of drawing money. They way they put the money to use might be different, but the techniques they use to get that money are more or less 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 a thing and might prefer to buy it, or would consider putting money in it, or creating a bond with it, we are likely to make the decision based on how enticing the whole idea is. If it is a very attractive proposition, we might instantly choose to opt for it while if it is not very enticing, we may not do it immediately.

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.

* First of all it has an ideal name, Charity Water, which strikes a chord in people's heart. The person behind the idea was obviously passionate about the image and about taking it to the people.

* Their idea of the vocation and their message is lucid, plain and remarkable - sell water and 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 let Charity Ratings plummet in a second

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 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 Enterprises improve Charity Ratings and solve the problems in Getting Funds

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 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.

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.

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 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 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.

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.

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

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.

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

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.

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 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.

TRANSPARENCY - B - Lack of transparency - sum of money is contributed for every purchase - but result is not fully measurable.

ADVANTAGE TO BUSINESS - A - People and enterprises by and large prefer to support it as it is promoted by popular idols like Bono and Oprah. End result of marketing is not correctly available.

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.

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 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.

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

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.

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.

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

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 Easy!"

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 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 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.

Other methods for improving 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.

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'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 are strongly advised to create lasting bonds with Buy1GIVE1 and also motivate your business associates to join Buy1GIVE1. It is a singular and wonderful organisation doing stupendous work and no one can afford to ignore it.

The dawn of a new age 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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