STHS grad washes away poverty with soap
By Kathryn Reed
Changing the world one bar of soap at a time.
That is the goal of four Chapman University students, including 2013 South Tahoe High School graduate John Cefalu. The four (Max Wysong, Ajay Dhameja and Daniel Cruz) have formed the nonprofit Health 2 Humanity to help orphans in Africa.
They have created their own line of soap. Through trial and error working out of their dorm rooms and a garage they came up with a 5-ounce bar made of natural ingredients. They now have a manufacturer producing the soap.
John Cefalu with children he met in Kenya in 2013. Photos/Provided
To start with, an orphanage in Kenya with more than 300 kids is the beneficiary. Each child is getting a bar of soap every month. Eventually the four friends want to reach as many orphanages as possible.
“We could just give soap and call it a day, but when the bar is gone where are they left?” Cefalu told Lake Tahoe News. “Our thought process is we teach them how to make it themselves. It helps them have economic opportunities.”
For every 250 bars of soap that are sold, Health 2 Humanity is able to sponsor another orphanage. Bars cost $7.99. (They are available at Gaia-Licious in South Lake Tahoe.)
Cefalu came up with the idea last summer when he went on an excursion to Kenya and saw people were living without the basic needs that he took for granted.
“It really changed my life and shaped what I wanted to do in the future,” the business major said.
Health 2 Humanity is partnering with Think Kindness so it can operate as a nonprofit as well as benefit from that group’s experience.
Money raised from soap purchases are divided in half.
“Fifty percent is put into a fund to bring resources and training to a developing country, while at the same time we teach someone how to make soap and also how to run a business,” Cefalu said. “Then, after the person we train makes the soap, a bar is given to each child in the orphanage that is being sponsored. Whatever soap is left over is then sold by the person that we train and hire and 100 percent of the profits from their soap goes back to the sponsored orphanage.”
Soap is available at Gaia-Licious in South Tahoe for $7.99.
The other half goes back into Health 2 Humanity to make more soap, for marketing and other overhead expenses, including what will likely be at least two trips to Africa a year.
Besides the hygiene benefits, the goal is people will be taught how to make the soap and be able to sell it for a profit – thus there is ideally a huge economic benefit to the area by providing jobs. The end goal is each orphanage becomes self-sufficient and the men of Health 2 Humanity move on to the next location that is in need of their help.
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Notes:
• More info is available at Health 2 Humanity’s website or contact John Cefalu at 530.307.2314 or cefalu@health2humanity.org.
• The group takes donations in addition to selling bars of soap.
Cheers to you gentlemen! Educative charity and micro-entrepreneurship rolled into one thoughtful mission! I’ll be on the lookout for this soap to purchase and help support your efforts!
Mr. Cefalu, Wysong, Dhameja and Cruz. Outstanding! Bravo, gentlemen!
I’ll definetly be buying a bar of your soap from Gaia-Licous Global gifts. The gift store is located at 987 Tallac ave., just a couple doors down from hwy. 50 on the right. Call 542-4244 for business hours.
“Health 2 Humanity”, what a great idea! I’m sure your folks are proud! Keep up the good work, Old Long Skiis
Congratulations to John – and his parents for raising him with these values. I’ll be going to Gaia-liscious today to buy my soap!! Not only is this an amazing humanitarian effort, but these young men are getting valuable business experience. To think they are college freshman and sophomores!!
What an inspiration you gentlemen are & I will be buying H2H soap for myself & to give as gifts. Lets all pass it on..
Until Health 2 Humanity obtains their own legitimate Exempt Nonprofit Status under Internal Revenue Code Section 501 (c)(3) they aren’t operating as a recognized nonprofit organization. “Partnering” with Think Kindness does not make an organization a nonprofit and thus Health 2 Humanity has no legal requirement which binds their adherence to the laws set forth in Federal Code Section 501 (c)(3).
Also, Think Kindness is a DBA for One Million AOK, IRS EIN #27-0856047. Their 2011 Form 990, Part II reports that their Gross Receipts were $19,091, their Charitable Contributions were $3,783, and their Expenses were $9,362. For 2011, their Charitable Contributions were 21% of their Gross Receipts; their Expenses were 49% of their Gross Receipts, and they Retained 30% of Gross Receipts. Their tax return can be viewed on the following link:
http://990s.foundationcenter.org/990_pdf_archive/270/270856047/270856047_201112_990EZ.pdf
According to the above website, Think Kindness/One Million AOK have not filed their 2012 Form 990 which was due on May 15, 2013.
While the stated lofty efforts of Health 2 Humanity sound altruistic, they can at any time alter their choice and just keep all the profits for themselves. Also, this article is wholly unclear about “Money raised from soap purchases are divided in half” and “Fifty percent is put into a fund to bring resources and training to a developing country and the other half goes back into Health 2 Humanity to make more soap, for marketing and other overhead expenses, including what will likely be at least two trips to Africa a year.” That’s all extremely vague.
I realize that this is a feel good story about a local kid and his friends, but entrepreneurial tricks under the guise of nonprofit good deeds are all too commonplace. Young Mr. Cefalu and his colleagues need to do this the right way and apply to the IRS for legitimate Nonprofit Status, once that’s received they’ll have real credibility and proof of their altruism, plus they’ll have all those accompanying beneficial tax breaks. But until that 501 (c)(3) Tax Status is granted this is the equivalent of George Costanza’s “The Human Fund” on Seinfeld, except it’s for a bar of soap costing $7.99.
They don’t need their own 501c3. They can obtain a fiscal sponsor who has a 501c3 determination. That is a much easier and cheaper direction and works just as well.
For marketing a cheap product, 50% expenses and admin isn’t terrible at all. Overhead of 15-20% is pretty good and another 30% for cost-of-goods-sold is generally considered to be excellent.
I haven’t looked at the 990. And it seems like they are a little loose on the legal filings, but not too far off. They need to get the fiscal sponsor.
Wow, really??? How dare you question the legitimacy of the organization and their partnership with Think Kindness. All donated funds have gone through Think Kindness. There has been zero profit to any of these young men. All of the efforts, as well, time energy and expense have gone to the kids in need. Their partnership with Brian Williams the founder of Think Kindness are with only one goal, the benefit of children in need. Former USMC nice screen name how do I know your not a fraud? You state you are former USMC how do I know that. What I do know is the total unselfish mission of Think Kindness and Health 2 Humanity. Their many humanitarian trips delivering shoes, clothing, life straws, sporting equipment, computers, medical supplies and care to children in need. Now because of the very lofty goals of four young men, they will provide hygiene products that are in short supply and high demand! Not to mention the ability of orphans to produce and provide for themselves. Instead of trying to slander a fine group of people, you should get out from behind your computer and lame screen name and do something that might benefit others. All of the courageous vets and active duty military that I know are proud Americans that are happy to stand behind who they are. Great job to Think Kindness and Health 2 Humanity! Keep up the great work. Understand there will always be a small portion of the population that will question good deeds due to their own issues!!!! I have learned more from my son about the importance of thinking of others and doing not saying than I ever imagined!
Moral Hazard:
The only time I experienced the use of a “fiscal agent” was regarding a grant made to a Non-Profit Community Development organization in the Bay Area for the project specific purpose of a shelter while that shelter was in the process of applying for their own 501 (c)(3) Tax Exempt Determination Letter from the IRS. That’s not the preferred manner that Foundations elect in their grant making awards, but when writing grant checks for amounts in excess of $1 million it’s necessary to cross every T and dot every I. I suppose the “cheap and easy” way of doing things may be a possibility, but I wouldn’t donate any of my money to an organization that didn’t secure their own 501 (c)(3). And I don’t trust not-for-profit organizations that are “a little loose on the legal filings”.
Fiscal sponsorship is particularly useful when an organization will only be involved with a project for the short to medium term, or if the amounts involved are small. What is important is that the goals of the sponsee are aligned with the sponsor. If that’s the case, an it appears to be, then getting a fiscal sponsor is wholly appropriate and not a short cut.
Joby Cefalu:
I have every right to question the legitimacy of any not-for-profit organization since those organizations enjoy very beneficial tax circumstances. It would appear that you feel your child has been personally attacked but in actuality what I said was “Young Mr. Cefalu and his colleagues need to do this the right way and apply to the IRS for legitimate Nonprofit Status, once that’s received they’ll have real credibility and proof of their altruism, plus they’ll have all those accompanying beneficial tax breaks.”
It is your choice to believe that One Million AOK/dba Think Kindness is legitimate but subsequent to perusing their 990 PF (many of which I have prepared) I don’t currently share the same comfort level as you.
With regard to my military service, I enlisted in the Marine Corp in December 1961 and served until May 1966. The reason I use a screen name is because my name, address, and telephone number are in the telephone book and because some people who don’t like what I say have made threats. I have no intention of placing my loved ones in a compromising or dangerous position because of the effect of my opinions on an individual lacking impulse control.
You can believe whatever you want, just as I can.
4-mer-usmc:
I welcome any criticism that you may have and I would love to speak with you and go through any issues that you may have. I am very sorry that you have such a pessimistic view on companies like mine who only have good intentions. We are a very young company and are working towards all of the issues that you have brought up. Please feel free to shoot me an email at cefalu@health2humanity.org and we can set up a time to chat. I would love to take in any advice that you may have.
Mr. Cefalu:
You appear to be a very impressive young man. I do not have a pessimistic view of your company and would actually like to see you succeed. After having many years’ experience with a very large Foundation in the Bay Area I always perform my own review on a nonprofits current status with the IRS. I still stand by my initial recommendation and suggest your organization obtain their own IRS Tax Exempt Status for your own philanthropic purposes. Should you ever decide to expand on your philanthropic efforts and wish to seek grants a 501 (c)(3) document would be needed, also, you would never need to be concerned that an organization on which you depend but over which you have no control continues to conduct their activities above reproach and possibly place your organization in jeopardy. Lastly, there are some very good tax benefits.
I wish you great success in your altruistic efforts and applaud anyone possessing concern for humanity.
To the Cefalu family, 4-mer-usmc and others,
Joby, your son is doing a wonderful thing! I’m gonna scrape together a few more dollars and buy more soap for gifts. If I was you I’d be bustin’ buttons on my shirt with pride! Youv’e got a fine son. Is Wysong the son or grandson of the local accountant? Is 8 bucks a bit high for a bar of soap? Not when it comes to helping orphans in Kenya! On top of that they will learn how to become more self reliant by selling soap that they made themselves!
4-mer-usmc, You and I don’t always agree but I will say I share with you using a pseudonym as opposed to my real name. When going by my real name I did get several disturbng phone calls from people who refused to identify themselves, some vaguely threatening.
As far as the non profit status? I’ll bet these kids get it figured out right quick if there is any problem.
Cefalu family be proud of John and your families long history of continued contributions to this community!
4-mer-usmc be proud of your service! Without our men and women in the military, this country would not be what it is today.
Thank you one and all, Old Long Skiis
First and Foremost,
As the President & Founder of One Million AOK (dba Think Kindness), I am truly proud of what John and his team has done. It started as a simple high school philanthropic project and has turned into an endeavor that has not only inspired hundreds of lives, but changing even more around the globe. Our world truly needs more people like those apart of the H2H team.
4-mer-usmc – I thank you for your service! One of our speakers was a marine corp scout sniper that is advocating Kindness in schools across the country. Please know that I 100% welcome your comments and criticism. H2H is a for-profit company that is doing charitable works. They are donating 50% of their for-profit proceeds into a restricted fund managed by Think Kindness, which carries out all of the philanthropic efforts. The account is managed by the board of Think Kindness as well as an advisory committee. The funds are deposited into a separate account and none of the funds are used for any TK administrative costs. This type of scenario is becoming more common within our generation. The most famous of which is TOMS shoes, buy one give one. TOMS is a for-profit company that donates funds to non-profits that have the capacity, connections, and capacity to carry out their efforts in distributing over 1 million pairs of shoes per year. This is a much more efficient way. These type of companies are considered ‘Social Good’ companies. For-Profit companies that are in business for the social good of society.
Everything that is carried out on the philanthropic side in Kenya is funded with the restricted funds raised by the selling of soap within the United States. This includes but is not limited to: purchasing of materials within regions of kenya, funding the salaries of individuals to make soap, provide marketing materials for them to sell soap within their villages, and also fund the travel of volunteers to train them on how to make, manage, and execute their tasks.
In regards to our financials. Directly on our website you can access 2010, 2011, and 2012 990 tax returns. 2013’s 990 has been filed and will updated on our site within the next 30 days.
Again, I am proud to see what John and his team have and are about to accomplish. The energy is infectious and it showcases the power of the human spirit. Great work to everyone and thanks to all who’ve supported their efforts so far. (especially their parents!) This is a Tahoe story that will be told across the country. . . and it’s going to be a good one!!!
Brian Williams:
Thank you for your very nice correspondence. I perused the Think Kindness website and did not readily locate a link to One Million AOK’s Form 990 PF so I went directly to the IRS website which is where I am accustomed to looking. Perhaps the posting delay of your 2012 Form 990 is due to the IRS; they have been known to run behind schedule.
As I said to Mr. Cefalu, I applaud anyone possessing concern for humanity, and would add especially those individuals willing to “put their money where their mouth is.” Commendation on your altruism and those of your brethren and it is my hope that your charitable actions will inspire the same in others. The world needs a new generation of philanthropists and I shall enjoy observing you and your organization, Mr. Cefalu and H2H, and other young people participate in this honorable endeavor.