The Better You Blog

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 the general public are swayed so much by the charity ratings the press and media give, a brand new charity can flourish very quickly with a flood of charitable giving being thrown its way. And of course when the media lose interest, then the charity rating can drop out of the sky overnight.

Charity rating directory listings

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!

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 belief 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 Watchdog Scares are more common

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 exposed

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 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 combine to make Charity Water so enticing, making it popular, are easily decipherable.

* 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 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 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 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 socially conscious businessmen may find the ambiance of a full fledged commercial venture and its decision making mechanism unpalatable. For such people a social enterprise is an apt field where they can use their business acumen and inspiration effectively to solve social problems and usher in changes. One of the best known among such socially aware entrepreneurs is Muhammad Yunus who won the Nobel Peace Prize in 2006. He was the first business man to be given such recognition.

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.

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.

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 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 methods of 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

WAY 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.

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

EXPENSES FOR RAISING FUNDS -B – Heavy expenses are incurred 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.

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 licensed to partner companies, to raise money for the Global Fund to Fight AIDS, Tuberculosis and Malaria in Africa.

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

BENEFIT FOR THE BUSINESS – A – Popular among business ventures as well as people as it is supported by charismatic personnel like Bono and Oprah Winfrey. Marketing results are however not fully traceable.

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

PATH 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.

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.

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.

ABILITY FOR EFFECTING A CHANGE – B – The ability of the business to give back to the society is good – still few make the required additional effort to press on for change.

LIVE EARTH

WAY 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.

DONOR\’S CHOICE OF CHARITY – C – Only three charities could manage to get 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 form a partnership with any business – connecting them with any worthy cause in any place. A truly universal precept.

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.

DONORS\’ CHOICE POTENTIALS – A – Businesses have the option of choosing a particular project to donate to, or give to a worthy cause of their choice like feeding, knowledge training etc.

PROMISE FOR GLOBAL CHANGE – A – Unlimited. If more and more businesses can collaborate with charities internationally, the prospects for real change is colossal.

You Might Think Giving away Money Would Be simple!\”

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 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 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.

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 relatively new Social Enterprise founded by a Japanese lady called Masami Sato in\’97. 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

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.

Discover more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing. You are welcome to reprint this article – but get your own unique content version here.