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Business Non Profit Organizations How To Increase Charity Ratings
Business Non Profit Organizations How To Increase Charity Ratings
| How To Increase Charity Ratings |
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| Written by David Anttony |
| Thursday, 31 December 2009 08:22 |
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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. Charity rating directory listings 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! 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. With enough charity rating guides, there is no data shortage for anyone who wants to get information on the 100 top charities, but what constitutes real rating is something different. What in reality makes a charity superior has nothing much to do with its ratings. There are characteristics that make an organization, whether charity based or otherwise, stand out from the rest. Charity Ratings and trust 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 Warning Bells 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. 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 mystery 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. * 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 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. 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 picture a charity projects would strongly affect its ratings. By projecting an arousing and motivating picture of itself it will be able to influence people well. Then people will be ready to give more in response. Social Enterprise raises Charity Ratings and reduces Fundraising Problems Social Enterprise is a new business pattern that evolved a few years ago. This combines trading with a social purpose. This pattern is a result of the interest of some businessmen who have social objectives but does not find the type of functioning of charitable enterprises satisfactory enough. Many socially conscious businessmen may find the ambience 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. 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. 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. The company has managed to advertise the worthy cause of the charity Midday Meals in Australia. The inspiring story is continuously shared by Maple Muesli with all their buyers which has resulted in increased rating for the institution of Midday Meals in Mumbai, though all that the charity does is provide a daily lunch for those needy children. This is the era of Effective Giving - The sun has almost set on the Era of Plain Charity Donations. 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 ROUTE 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. CANDOUR - B - Insufficient candour - Lots of money is donated - but result is not completely quantifiable. ADVANTAGE TO BUSINESS - C - Even a single donation to Salvation Army by a business might find mention in the press. EXPENSES FOR RAISING FUNDS -B - Heavy expenses are incurred for raising 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 licensed to collaborate with companies, and collect money for their Global Fund to Fight AIDS, Malaria and Tuberculosis 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. EXPENSES FOR RAISING FUNDS - C - Spends huge sums of money on advertisements - giving that money directly to Africa would have been more practical. DONORS' CHOICE POTENTIALS - C - Enterprises that partner with them have limited options in where their money should go - all needs 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 ROUTE 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. TRANSPARENCY - B - Lack of transparency - sum of money is contributed for every purchase - but result is not fully measurable. 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. FUNDRAISING COSTS - A - Lower costs - Successful business model that makes donations and boosts community trade. DONORS' CHOICE POTENTIALS - A - Ventures that donate has the option to decide in what way their donations are to be used. 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 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. TRANSPARENCY - F - According to Intelligent Giving, there were big questions about accountability as to where the proceeds of ticket sales went. ADVANTAGE TO BUSINESS - B - The sponsors of the business benefitted by the good press coverage, though by being a single occurrence results were not properly assessable. 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. PROMISE FOR GLOBAL CHANGE - C - Such events can be held just once or at the most once a year. The amount collected generally goes to better known 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. CANDOUR - A - By giving for particular causes, makes sure that funds go exactly for that which it is intended. Customers get information on how exactly their money has made a change - i.e. the children whom it helped, or the environmental cause it protected. BENEFIT FOR THE BUSINESS - A+tve - Superb marketing value as a result of: * Calculable giving * Media interest * Effective stories * Person to person * Returning 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 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. 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. 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. As of now if one is not connected with good international networks via the internet, the chances of losing out are substantial even with good charity rating, tomorrow things are bound to change - totally. 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. 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. About the Author: Find out more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing. Click here to get your own unique version of this article with free reprint rights. Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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