Posted: January 27th, 2010 | Author: David Anttony | Filed under: Society | Tags: BOGO, Business, Buy1GIVE1, cause marketing, fundraising, marketing, Society | No Comments »
Charity ratings are something so inconsistent that highly rated charities might easily find themselves outdone in rating by unknown ones that materialize out of nowhere. Charity Water is a representative though new sample of this. The power of the online medium and ingenuity are helping brand new charities to drive their ratings sky high. A charity that may not have any rating one day might be considered as one of the top of the chart charities by the New York Times the next day and their rating would then go through the roof in no time.
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!
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.
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
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 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 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.
* The message and objective are clear, straightforward and singular – sell water and give water – Buy One Give One
* Their focus was on how to solve the problem and not the problem itself. It is important for charities to properly define their focus if they want people to rate them highly. No one has interest in getting their attention turned to the unpleasant things in life. People want a positive focus. So when they are told that they can make a positive change in the lives of others by buying a bottle of water they feel happy.
How to reduce you Charity Ratings in a heart beat
The fastest way in which a charity’s ratings would go down is when it turns itself less tempting by centring its attention on the problem. People are by and large disinclined to listen to negative things. On the contrary, most people are keen on listening to positive things that involve verve, dynamism, motivation and effort to bring in a fresh vision.
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 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
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 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.
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 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.
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.
Alternative Charity Ratings
Newer and varied ways of gifting things to others are rated and featured in the table given below. These are Charity Comparison Data.
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
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.
COSTS OF FUNDRAISING – B – Huge amounts are spent every year 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)
WAY 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.
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.
ABILITY FOR EFFECTING A CHANGE – B – All those who collaborate with Products (RED) are big enterprises and all the income is spent on Africa.
THE BODY SHOP
PATH 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.
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.
EXPENSES FOR RAISING FUNDS – A – Costs are kept low – Business design is good enough to attract large contributions and further community trade.
DONORS’ CHOICE POTENTIALS – A – Ventures that donate has the option to decide in what way their donations are to be used.
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 music concerts for a global audience held on July 7, 2007 which kick-started a three-year long campaign to fight climate changes across the world.
TRANSPARENCY – F – According to Intelligent Giving, there were big questions about accountability as to where the proceeds of ticket sales went.
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 )
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).
ADVANTAGE TO BUSINESS – A+tve – Outstanding marketing value due to:
* Measurable giving * Media attraction * Good stories * Word of mouth * Repeat customers
COSTS OF FUNDRAISING – A+tve – Absolutely no cost – B1G1 can oversee a charity’s needs for raising funds and also manage much of the administration as well. So the funds go entirely 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.
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 Might Think Giving away Money Would Be simple!”
Donating money may not seem to be a difficult job – it is just a question of handing over some money as cheque, cash or via the credit card. Still, someone like George Sores, who is as generous a donor as could be, agrees that effectual giving is no cakewalk. Underprivileged communities and countries receive millions of dollars in aid and still the situation remains much the same year after year.
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.
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 ways to improve 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 rather new entrant to the world of Social Enterprises and was launched in’97 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
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.
Find out more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing.
categories: fundraising,Buy1GIVE1,society,cause marketing,business,marketing,BOGO
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