Jul 16th, 2008
Donating your unused clothing makes a lot of sense; you can help out a charity like Goodwill or the Salvation Army while cleaning out your closet. You’ll even score a small tax deduction. But choose whom you give you clothes to carefully; for-profit companies are now setting up clothing drop boxes and then reselling your duds to consignment stores or textile recyclers.
Misleading clothing donation boxes
I learned about for-profit clothing drop boxes a couple weeks ago when my parents told me about a bright red donation dumpster they saw in a shopping center parking lot. When they red the fine print, they realized the drop box was not sponsored by Goodwill, the Salvation Army, or another charity, but a for-profit company that donated a tiny percentage of its profits to charitable causes. The practice is misleading at best, illegal at worst.
Clothing recycling boxes
While some companies solicit clothing donations under the guise of charity, others—like U’SAgain—are unashamed to be collecting your old clothes and making a buck.
Unscrupulous charities
Finally, there are even some non-profit organizations soliciting clothing donations that you may want to avoid. Planet Aid is one such company that has drop boxes in certain locations around the country and brags supporting a variety of causes in Africa. There are allegations, however, that Planet Aid, U’SAgain, and other clothing recyclers have links to criminal organizations.
Whether or not the group skirts the law, annual reports reveal that just 11 percent of Planet Aid’s income goes to charity. While non-profit organizations cost money to operate, it seems reasonable to question just how Planet Aid spends the other 89 percent.
How do you find a legitimate charity that accepts clothing donations?
While many charities may be able to put your garments to good use, the Salvation Army and Goodwill are two widespread and reliable charitable recyclers. With some exceptions, however, these groups are likely to have fewer stand-alone drop boxes. To donate clothing, you may have to drive to a thrift store or staffed drop location.
Locate a Salvation Army or Goodwill clothing donation site now.
I'm David, an ex- financial journalist and recovering debtaholic. I'll help you get out of debt, get saving, and get on with life. Sound good? Please subscribe (RSS or e-mail) or follow me on Twitter.
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Donated clothing is often sold in markets overseas, leading to the collapse of the garment industry in 3rd world nations. (Per a friend of mine at the IMF. I think he specifically pointed out a study in Malawi…)
I’ve been trying to repurpose my old clothes but the donation box and its tax benefits keep calling my name…
To mapgirl’s point – Save This shirt is a great book for repurposing old clothing. There are all sorts of ways to reuse it! Like using the fabric for quilts, etc.
Our local fire department has a drop box, and they make money off of it. When I only have a few things (not worthy of a Goodwill reciept) I throw it in their box. I don’t have qualms with this use of it, as it’s still supporting a local organization I want to support.
I didn’t realize there were straight for-profit boxes though! That is very misleading, and I fear the organizations who are using this for a good reason (ie: fire departments) are going to get burned… I suppose it’s better than landing in a landfil!
I’m curious as to how often these boxes are emptied and how much stuff doesn’t get used.
I always see signs screaming “No furniture, trash,” etc.
The boxes depending on locations, are often emptied twice a week. In connecticut most good locations do 2000 pounds a week. Mapgirl just so you know, almost all donated clothes are sold in overseas markets. Including all of goodwill and salvation armys product that isnt used in consignment stores. They donate the money they get from the sales of clothes. now for the guy who wrote the article, you are really on point and have some valid info. Im a non profit clothing collection company. It is not illeagle though for someone to be a for-profit. The other horrible thing are goverment allows is you can be a for-profit and rent a name from a charity much like big brothers big sister. American Thirft land inc. pays 15,000 dollars a year and then sells the cloths for .30 per pound. Now imagine a nation wide company that collects 3 million pounds per month. that is a gross profit of 900,000 dollars per month and they donate 15,000 dollars a year. It dosen’t say anywhere on there box that there not actally big brother big sister.
Some organizations DON’T sell clothing overseas; just watch out for who does and who doesn’t. You can also sell or trade or swap clothes.
I know about that too. My friend(she lived in Africa)really witnessed this.
Do you people really feed into this internet GARBAGE!!?? I am a rep of Planet Aid. Where do you get your information from. People please, let me clear the air for you. Planet Aid does collect clothing for reuse. The clothing is sold, correct. The profits are used to build schools, train teachers, AIDS programs, Food programs, ect. To whoever is reading this, trust me, this article is FULL of only ALLIGATIONS!! Most likely a for-profit company trying to bash on other for-profit and even successful non-profit companies. Believe half of what you see, and NONE of what you hear. Planet Aid has ties to criminal activity??? What??Planet Aid is in 20 different states in the U.S. Thats just rediculous. Get a real job. Have a good day. God Bless……..
please I want mor e information about charity npnprofit
Hey Roberto
What would you like to know? What kinds of Charities or Non-profits are you interested in?
Mr. John and informed readers,
It isn’t ALL internet garbage, only everything that isn’t Planet Aid P.R. It’s the Better Business Bureau, Institute of Philanthropy, Boston Globe, & Toronto Star, and the BBC, among other organizations and publications. Exactly what percentage of profits go to people in need and how exactly are they helped? It is questionable practices at best, misrepresentation, and–at worst–ties to criminal activity. Look up Tvind, Teachers Group, or just put “Planet Aid” & fraud together in Google…then think about it (while you give LOCALLY) and decide.