Why I Won't Participate in the ALS Ice Bucket Challenge

I won't be giving money to ALS or participate in the Ice Bucket Challenge. Not because I think that the ALS society is not a worthwhile charity. It is just that there are many other charities for which I have a greater affinity.

I have been watching the ALS Ice Bucket Challenge with interest. Everyone from former Presidents to your next door neighbour are tossing a bucket of iced water over their head and then challenging someone else to do the same. It is one of the most successful campaigns for a charity ever, and the ALS Society is getting money faster than they can handle. As people take the challenge and give money to this organization (and possibly don't give to another disease group) are they doing so because they understand the statistics around the disease, the association and its administrative & fundraising expense to program expense ratio? Or are they just donating because they've been challenged and, well, this is a fun thing?

Generally people give to specific charities for a few reasons.

    They have been touched by a disease personally;
    They are supporting someone else who they know who is raising funds -- someone who is involved in an event or perhaps someone's spouse or parent died and it is a "in lieu of flowers donation;
    They wish to support the marginalized or poor, either in this country or another;
    They believe an association does "good works" -- a hospital, a children's organization, etc.

True philanthropy is not getting on a band wagon, through peer pressure or "ha-ha" this is fun, who cares what it is raising funds for.

Now don't get me wrong, as I do believe you can have a fun event and raise money at the same time. But for me, I believe a lot has been lost in translation with the Ice Bucket Challenge.

Whenever you give money to a cause, you should always ask the question "Why?" And it shouldn't be because everyone else is doing it. The "why" usually consists of some of the points noted above.

All other charities are now looking at what they can do to make things go viral and raise the type of money that the ALS society is. So I'm sure we will see other similar fundraising activities in the future. It is somewhat like when one hospital started a lottery. Now we have more charitable lotteries than you can count on your appendages.

I am not dissing the ALS Society. Good for them for raising the amount of money that they are, and hopefully many will benefit.

But the bandwagon effect is not sustainable, and I believe that most people have not even considered how many people are affected by this disease vs. others (in the US is about 30K people are living with ALS according to recent statistics by the CDC) or what the admin/fundraising expense to program expense ratio is for ALS (it is good but a little higher than most associations with only 72% of what is raised going to research and other programs).

There are approximately 300K sufferers of MS in the US; 800K suffer strokes; 1 million suffer from Parkinson's; 5 million have Alzheimer's; and so on. The number for ALS is relatively small in comparison, which I know means nothing if you or a relative/friend are afflicted with the disease.

When giving to charity, for a disease group or to some other charity, ensure that it is meaningful to you. Don't just do it because everyone else is. And make sure that you give the same or greater amount every year.

I doubt very much that after this blip in the ALS fundraising that they will experience the same generosity in the future. Because most of the people who have done the Ice Bucket Challenge probably know relatively little about the disease and only did it because of peer pressure.

This is gamesmanship not philanthropy and it is not something I would participate in, or I think is meaningful in the long run.

The One Thing To Do To Make Money And Do Social Good

I keep on saying it. We're living in fast times. Radical innovation and progress is happening unlike anything we've seen before in human history and it's impacting the philanthropic sector. Major donors are no longer looking at nonprofits as the only game in town. Start-up companies are melding social good with making money.

So, let's say you want to make money and do good in your part of the world. There's a way to do it. It'll give you a good head start with regard to giving you a "seal of approval."

The Basics of a B Corporation

B Corps are for-profit businesses that are certified by the B Lab. At present there are over 1,400 Certified B Corps in 42 countries and over 120 industries. They seek to "redefine success in business."

These B Corps have joined a growing movement to go through a rigorous review process around performance, accountability and transparency. Additionally, these businesses have committed themselves to the following:

    B Corps commit to creating higher quality jobs.
    They commit to improve the quality of life in their communities.
    B Corps are seeking to provide not only value for their shareholders, but also for the greater world at large.

While B Corps recognize that there is a need for charitable organizations, they are also aware that business can bring a lot to bear for social change. For-profit businesses understand market-based and scalable solutions. Some B Corps with this certification include Etsy, iContact and Better World Books.

Why Become a B Corporation

The first reason is simple: money. By becoming a certified B Corp, businesses can demonstrate they have gone through a rigorous vetting process. They are able to show:

    That they can achieve social impact.
    Have the management and operational infrastructure.
    Can command higher valuations when sold, or were they to go public, because they are certified.

Another reason to consider this type of certification is because it provides the public with proof. It tells your customers that you actually mean what you're saying. According to Cone Communications, "90% of Americans say that companies must not only say a product or service is beneficial, but they need to prove it."

How to Become a B Corp

By going to the B Lab website, you'll find everything you need. Essentially, you have to do the following:

    Complete the B Impact Assessment and earn a reviewed minimum score of 80 out of 200 points.
    Determine the path for your corporate structure and state of incorporation.
    Sign the B Corp Declaration of Interdependence and Term Sheet.

I'm not saying that becoming a B Corp makes sense for everyone. However, if you're looking for a competitive advantage and want to make money as well as do some social good, this may be a great option for you.