Learn the Reality About Charities

Let’s talk about charities. In today’s fast-paced and unpredictable world, it is so important to be aware of trickery and scams. Philanthropy is an arena with its fair share of big scandals.However, it is equally – if not more – important to ensure we help each other when we can. Life slows down for no one, but a helping hand can give the less fortunate what they need to keep pace. 

With ‘AFIK for the Community’, Yaacov Afik (Afik Group’s CEO) established a charitable platform that has the scope to tackle a broad range of issues. Any cause, big or small, can be tackled by the charity’s team with professionalism and skill. 

The impact of charities is not limited to financial assistance to the poor – they also help pave paths toward hopes and dreams, give our greatest and brightest the opportunities to foster their gifts, provide aid and safety to animals, protect the environment, and so much more. This is why charities matter.

To spark the spirit of charity within you, we will start by highlighting some real-life charity success stories before diving into information about how charities work, how to discern whether a charity is honest and true to their public mission, and also clear up some common misconceptions about charitable organizations. 

Serious Charities & How They Help

Addressing Homelessness

"Sheltered by Grace saved my life—plain and simple. And the truth is, it wasn’t because of anything I did." - Brad

Charity name: Sheltered by Grace

Based in: Waterford, Logan, Queensland, Australia

Their mission: Since 2009, this charity has worked toward ending homelessness in a sustainable manner, providing emergency shelter for individuals over 25 who are experiencing homelessness or at risk of becoming homeless due to complex issues including addiction, domestic violence, mental health challenges, and more.  

Support Provided: Life skills training, personal development, domestic violence trauma recovery, addiction recovery, and addiction recovery

Story of a Life Saved: Brad’s life growing up was one of pain and emotional neglect. He was told his parents’ separation was his fault, then never found his place within the homes of his father or mother. The emotional toll this took led Brad to drugs during his early teens and addiction was quick to take hold. This turned into a decade of living on the streets while he fed his habit, saw the tension grow between him and his family, and hit rock bottom when his father passed away. 

While struggling to get clean by attending Narcotics Anonymous meetings, a chance encounter with Sheltered by Grace’s manager led to a bed at the charity’s shelter and then six months of rehab and recovery. He has since turned into a new man who supports other residents at the home. 

Funding: Non-governmental, primarily supported by donations, grands and corporation sponsors

Learn how to donate or volunteer at www.sbg.org.au

Lt. Dan Helps Veterans Navigate Normal Life

“The Gary Sinise Foundation stepped in to fill a void in our lives that we had. My husband lost his arms and legs by an IED while on patrol in Afghanistan back in 2012. We didn't have a handicap accessible home at the time and GSF gifted us with a fully equipped/accessible smart home! Now my husband can do daily tasks that he thought would be impossible, possible.”- Review on greatnonprofits.org by Kelsey M.

Charity name: Gary Sinise Foundation

Based in: Franklin, Tennessee, USA

Their mission: Gary Sinise has been actively supporting the military since the 9/11 attacks. The Gary Sinise Foundation (a registered nonprofit) was founded in 2011 to bolster his endeavors. In essence, the organization honors, supports, and entertains USA’s defenders, veterans, first responders, their families, and those in need. 

Support Provided: Providing specially adapted smart homes, mortgage-free, to severely wounded veterans and first responders through their R.I.S.E. program. The Gary Sinise & the Lt. Dan Band (named after the actor’s iconic character in ‘Forrest Gump’) has performed over 500 shows to entertain, boost morale and raise funds and awareness for disabled veterans. On top of this, the foundation hosts many outreach programs and organizes events such as the Snowball Express five-day experience at Walt Disney World, which hosts children of fallenservicemembers and first responders. Snowball Express has had over 17,840 attendees since 2018.

Funding: Primarily donations – the foundation raised over $300 million between 2011 and 2021.

Learn how to donate or help at www.garysinisefoundation.org/learn-more

Supporting & Empowering the Mediterranean

“One Name, Many Stories, Touching People’s Lives”- Slogan of Afik for the Community

Charity name: Afik for the Community

Based in: Caesar Resort & Spa, Yeni Iskele, North Cyprus

Our mission: Yaacov Afik founded his philanthropic platform with the intention of “Building a legacy of compassion in the Mediterranean and beyond.” – his vision was to have a hand in bettering the communities of Northern Cyprus, Turkey and beyond, wherever possible. He and his team keep their eyes and ears open for causes big and small. As long as their efforts can make a lasting difference, they are there. 

Support Provided: The charitable events and initiatives the group has notched up include disaster relief after the 2023 Turkey earthquake – this included financial aid through the Cyprus Foundations Administration, and the dispatch of five trucks with essentials including food, clothing and necessities.

Animal welfare is something Mr. Afik pursues with great passion, donating around 60,000 Turkish Lira (approx. US$1,500) each month, which provides food, vaccines, medication, neutering expeditions and more for animals living on the streets. 

Yaacov Afik has also funded renovations of elderly care facilities to make the homes more comfortable and safer for residents. Financial aid has also been extended toward families in need and to care for sick children. 

Learn more at www.afikdonations.com

The Reality of How Charities Work

At the end of the day, a charity is an organization that effectively gathers funds or other resources and forms of support for a cause and funnels it to where it can be put to use. These processes are not simple, requiring the dedication of skilled individuals. It is not sustainable or prudent for a charity to give 100% (or even close to it) of donations to the cause. 

There is overhead, including:

- Salaries | Many charities will have a roster of volunteers with consistent turnover, but like a good business, a quality group/team of skilled workers are needed for everything from management to IT. Paying staff worthy salaries makes the charity more effective and brings in more money than if the staff were not there. 

- Office Space & Base of Operations | A quality staff needs a good place to work.

- Utilities & Equipment | Electricity, gas, internet access and other necessities require funding, as does the purchase of essential equipment such as computers, cameras, printers etc.

Any charity looking to make a significant impact needs to organize fundraisers, which fits the adage “you need to spend money to make money.”

With the costs of running an effective charity made clear, one can see that judging a charity by how much they spend is not the best approach. It is better to look at the impact their efforts have. Non-profit does not mean that an organization doesn’t make money, it means they don’t distribute profits to individuals. Profits can benefit charities as a surplus that acts as a reserve for emergencies and/or helps make long-term planning more viable, thus increasing the charity’s positive influence. 

So, if you see a charity being run like a well-oiled business, this is a good sign. But this isn’t to say that there are not times when a charity’s position has been exploited for personal gain. Especially egregious examples of this include the Cancer Fund of America being used to fill the wallets of those running the organization, resulting in attorney generals shutting down the organization’s network in all 50 states in 2015. Or the Cup Trust in the UK, which was set up to be used for tax avoidance. 

This is why the next section will outline signs to look for that indicate a charity is honest and transparent. 

Signs that a Charity is Trustworthy

- They DON’T claim to give 100% (or close) of donations to the cause | As we mentioned earlier, a well-run charity will have significant costs, so if they claim to be giving everything, that’s reason to be suspicious.

o An honest and sustainable charity should have a program expense ratio of 65-75% (meaning that percentage of the money they receive should be going to the cause). Anything lower is a red flag. 

- They have Audited Financial Statements created by independent entities that should be available for inspection, especially for large charities. 

- They are governed by an active and professional board of directors. 

- They have a whistleblower policy that not only allows but encourages employees to report concerns without fear of retaliation. 

- They are open to external verification by watchdog organizations. 

Why Charities Matter

Any misgivings anyone may have about charities are completely understandable, especially in today’s world. However, if you are in a position to give, volunteer or help in any way, doing so through an honest charity is a beautiful way to make a difference. 

Honest charities, such as Yaacov Afik’s organization, have laid the groundwork to make real lasting change possible. The systems they put in place are a blessing for anyone who wants to help as much as for those in need of help. That is the magic of charities.

Reading stories of lives changed by charity will not only smooth over any doubts you have butalso put a smile on your face.