Online Marketing

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 cynicism a bit on the higher side and eagle eyed guardians of charity practices ever on the lookout for malpractices, with huge amounts of money spent on managing or misuse of funds, directory listings of charity ratings are having a field day. It is rather strange that altruistic organizations, the purpose of which is to give others, themselves come under the scrutiny of guardians of ethics. Altruism is becoming a knotty issue!

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

A 2005 YouGov poll published that the majority of the British population – 56% – had only a ‘fair amount’ of trust in the global charities like Save the Children and Oxfam . Only 15% of the charities surveyed had ‘a great deal’ of trust – even in the ones that do well in charity ratings.

Charity Critics’ Warnings are profuse

People do not have faith in charities any more. They cannot be blamed for this state of affairs. Eagle eyed critics of charities complain about mismanagement in the field with high salaries for the staff and about 60% donations being spent on overheads for running the venture, leaving little for actual 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 not much difference in the way in which charity organizations and commercial organizations try to get money. How they eventually use that money may be different, but their modus operandi for attracting that money is essentially the same.

In order to get the funds necessary for functioning, as well as to improve the charity ratings, there is only one assured way – make it tempting.

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 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 factors that make Charity Water quite fascinating and promote its rating are the following.

* 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

* 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 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.

All we have to do is see ourselves with our own kids and understand how we easily answer in the affirmative when they request for things in an eager and happy and excited way. But when they prefer to make their demands in a peevish or weepy way, we may tend to refuse.

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 raises Charity Ratings and reduces 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 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.

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.

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

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

WAY 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.

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

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.

PROMISE FOR GLOBAL CHANGE -C- No potential noticed for bringing about a market change.

PRODUCT (RED)

ROUTE 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.

CANDOUR – B – Insufficient candour – Lots of money is donated – but result is not completely quantifiable.

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.

POTENTIAL FOR REAL GLOBAL CHANGE – B – Products (RED) only partner huge companies and all their profits go to 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.

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.

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.

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.

COSTS OF FUNDRAISING – C – Huge amounts were spent on advertising and according to some the whole event was a damp squib without any actual goals.

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 form a partnership with any business – connecting them with any worthy cause in any place. A truly universal precept.

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:

* 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.

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 Easy!”

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.

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.

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.

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’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.

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.

Discover more about how Buy1GIVE1 (BOGO) can transform your business using Cause Marketing.