Most Americans donate to charities based on compelling stories or emotional appeals. Corporate executive Jack Truong took a different path when he decided to address hunger in Chicago. He spent six months analyzing organizations before writing his first check.
The extensive research revealed troubling patterns across the nonprofit sector. Many well-intentioned organizations lack the operational systems needed to convert donations into meaningful assistance. Others consume substantial resources on overhead expenses that would alarm any business owner.
Truong’s methodical approach uncovered the difference between charities that deliver measurable results and those that simply burn through contributions while producing limited impact.
Walking Chicago Streets Changed His Focus
Truong’s charitable priorities shifted after moving to Chicago and observing conditions firsthand. Walking through downtown areas, he witnessed increasing poverty and homelessness, particularly following COVID-19.
“Since coming to Chicago and particularly right after Covid, what I saw is a lot of, walking around anywhere in Chicago, particularly in downtown, there’s just a lot of poverty, a lot of homeless folks,” he explains.
The economic pressures became clear during these observations. While inflation dominated headlines, Truong recognized that purchasing power had declined for many families despite nominal wage increases.
“People are saying that inflation have gone up, but really the purchasing power has really gone down for most of them because what do they earn? They know the rates of growth and their income does not match the rates of rice or cost of goods,” he notes.
Children faced particular challenges accessing nutritious food. Families struggling financially often substitute fresh produce with processed alternatives, potentially affecting developmental outcomes.
The 90% Efficiency Standard
Truong applies a simple but rigorous financial test to potential charitable partners. He asks each organization what percentage of donations reaches intended beneficiaries rather than funding administrative costs.
“I think that I always ask when I work with different charities is that what percent of the donation actually go toward the people that they target to help? So that, typically, a very good organization, more than 90% of what you donate go directly to the people who are in need,” he explains.
This criterion eliminates nonprofits with bloated overhead structures. Organizations that cannot demonstrate efficient resource allocation often redirect donor funds toward salaries and operational expenses instead of direct assistance.
The 90% threshold reflects standards Truong would apply to any business partnership. Charitable organizations that fail this test typically lack the financial discipline necessary for sustainable operations.
Operational Sustainability Assessment
Financial efficiency alone doesn’t guarantee impact. Truong’s second evaluation criterion examines whether organizations possess infrastructure capable of sustaining their missions over time.
“And then the second is that, does that have the scale to be sustainable in terms of does it have a good organization that allow it to continue to provide service to the community that is meant to do? Because those two are very, very important factors, because you don’t want to support something that just, and then short-lived, because then it’s not really sustainable,” he explains.
Scale becomes crucial when addressing systemic problems like hunger. Individual charitable acts provide temporary relief, but persistent social challenges require organizations with capacity for consistent, long-term intervention.
Supply Chain Complexity in Food Distribution
Truong’s research into hunger relief exposed the operational sophistication required for effective food distribution. During his tour of the Chicago Food Depository, he observed the complex logistics behind getting nutritious food to neighborhood pantries.
“When I took a tour of that, it dawned on me is that to be able to distribute food to the pantries, which then those who are in need of meals or food can go in and get, you need to make sure that not only that the food arrives at those pantries that’s within the expiration date so that they’re not, got spoiled and that they don’t or they’re still nutritious, you need to have a certain supply chain system,” he explains.
Organizations lacking sophisticated supply chain management often waste donated food or deliver products that recipients cannot use effectively. Successful hunger relief requires coordinating donations from restaurants and manufacturers while managing logistics to ensure perishable items reach families before spoiling.
Research Beyond Marketing Materials
Truong’s evaluation process extends far beyond reviewing promotional content or annual reports. He conducts direct site visits, meets organizational leadership, and observes operations personally.
These firsthand assessments provide insights unavailable through standard charity rating websites or marketing presentations. Truong can determine whether organizations possess genuine operational capacity to execute their stated missions rather than simply promoting compelling narratives.
His business background influences this approach, applying due diligence principles typically used for corporate partnerships to charitable relationships.
Multi-Year Commitment Strategy
Rather than annual donations, Truong structures charitable giving as multi-year commitments. This approach provides organizations with predictable funding streams necessary for strategic planning and program development.
“We first came across Feed America and Chicago Food late last year and we’re so impressed with that that we support them… And then we look now, we gain more knowledge with them that we would want to make that a multi-year support,” he explains.
Multi-year commitments allow nonprofits to hire staff, develop programs, and expand operations without constantly scrambling for annual funding. Donors can also track organizational progress over time and adjust support based on demonstrated results rather than initial promises.
Local Community Prioritization
Truong advocates balancing national charitable contributions with local community investment. Many donors support well-known national organizations while overlooking pressing needs in their immediate areas.
“I know that a lot of my friends and colleagues here in Chicago, they just need to be more aware about the situation here in Chicago. I think a lot of them support at the national level, but I also like to have to always focus on also where we live, the community that we live in,” he observes.
Local giving offers several advantages. Donors can personally observe impact, develop ongoing relationships with organizations, and address problems they encounter directly in their communities.
Developmental Impact on Children
Truong’s focus on nutrition reflects understanding of how food insecurity affects child development. Children experiencing inadequate nutrition may substitute fresh foods with processed alternatives, potentially affecting cognitive and physical development.
“You probably would appreciate that with kids, their mind, their brains, their body’s still developing. And if they don’t have certain fresh foods, that probably would supplement with some others, maybe canned food or processed foods is, it can be a detriment to their development and who knows what that’s going to do to the next generation,” he notes.
This developmental perspective influences his charitable priorities, emphasizing organizations capable of providing consistent access to nutritious food for children and families.
Systematic Approach to Maximum Impact
Truong’s methodology offers a framework for donors seeking measurable charitable impact. His systematic evaluation process treats philanthropy as strategic investment requiring operational analysis rather than emotional decision-making.
The approach provides concrete steps: requesting detailed financial breakdowns, evaluating operational infrastructure, conducting site visits, prioritizing local community needs, and structuring multi-year commitments.
“For my wife and me, it took us six months to do a lot of research to really understand which ones are the one that we can help make the bigger impact. Rather than just a small donation, we want to be able to make a big donation, allow them to have a scale and scope,” he explains.
For donors frustrated with charitable giving that produces limited measurable results, Truong’s business-oriented approach offers a path toward organizations addressing root causes of social problems rather than providing temporary relief.
