The Ratings Game Evaluating the three groups that rate the charities By Stephanie Lowell, Brian Trelstad, & Bill Meehan Stanford Social Innovation Review Summer 2005 Copyright © 2005 by Leland Stanford Jr. University All Rights Reserved DO NOT COPY Stanford Social Innovation Review 518 Memorial Way, Stanford, CA 94305-5015 Ph: 650-725-5399. Fax: 650-723-0516 Email:
[email protected], www.ssireview.com 38 STANFORD SOCIAL INNOVATION REVIEW by STEPHANIE LOWELL, BRIAN TRELSTAD, & BILL MEEHAN the ratings game The tsunami that struck South Asia in ited scale of its operations in the affected December 2004 will be remembered not areas. Another group, Direct Relief Inter- only for the scale of the human misery it national, assured donors it was depositing caused, killing hundreds of thousands and its flood of donations into a separate bank displacing millions, but also for the account, and that the salaries of its unprecedented global outpouring of char- employees would not be ity it evoked. Within a few weeks of the paid out of these donations, disaster, over $400 million (on the way to as part of its effort to maxi- Evaluating an estimated total of $1 billion) had been mize the amount that would raised by U.S. aid organizations alone; fur- reach the victims. the thermore, a large proportion of those If all of this heralds a new donations was made via the Internet. age in philanthropy, where three groups “The response has been unprece- the Internet will be a domi- dented,” says Mike Kiernan of Save the nant force in charity, bringing that rate Children USA, “greater than any other dis- a new sense of accountabil- aster or crisis in (our) more than 70 years ity and transparency to the the of operation.” By April, roughly 20 percent process, there are three of the $63 million Save the Children USA online services already in charities had collected for tsunami victims had come place that stand to benefit.