Multi-Million Dollar Non-Profit Owns Overflowing Donation Bins in Worcester
Wednesday, September 16, 2015
Between fiscal years 2011 to 2013, Planet Aid Inc. has generated revenue of nearly $130 million - with FY2013’s revenue totaling $48.8 million.
Even though they are listed as a non-profit, over the same period of time (FY2011 to FY2013) Planet Aid, with a hub located in Milford, netted $5.6 million in income after expenses.
According to Planet Aid, the organization “collects and processes 50,000 tons annually of used clothing, shoes and textile” across the country.
Worcester's residents are complaining that Planet Aid’s bins, and other donation bins across the city, are continuously overflowing and surrounded by trash, clothing and furniture.
Planet Aid says the company services the bins as often as needed, “even daily at busy locations.” In Worcester, Planet Aid has 10 clothing donation boxes and, according to Planet Aid, they are serviced once or twice per week.
Donation Boxes Owned by Questionable Organization
“Textiles have an immense carbon footprint because of the size and scope of the industry, the intensive use of energy in production and manufacturing, and the harmful gases released from decomposition after disposal,” Planet Aid President Ester Neltrup wrote in the non-profit's 2014 annual report. “With those kinds of consequences for our environment, it is shocking that the United States generates approximately 12 million tons of textile waste each year and that 85 percent of that waste is not recovered.”
According to the American Institute of Philanthropy (AIP), aka CharityWatch, “Planet Aid reports spending 85% of its expenses on programs in 2013. CharityWatch's analysis of Planet Aid's 2013 tax form and audited financial statements shows the charity spending only 29% of its expenses on programs.”
CharityWatch goes on to say that the fact that Planet Aid can collect nearly $50 million from selling the clothes it collects to needy people is the “most damning evidence against Planet Aid’s financial reporting logic."
“This proves that there is a ready market of buyers willing and able to pay large sums of money to purchase used clothing, shoes, and textiles like the ones Planet Aid collects. It is ridiculous for this charity to assert that items worth millions and millions of dollars would end up in a landfill if Planet Aid did not collect them.”
In light of CharityWatch's views, Planet Aid is an accredited charity with the Better Business Bureau.
City Council Addresses Clothing Boxes
At Tuesday's city council meeting, City Councilor Kate Toomey requested that the City Manager provide a report concerning the recent actions to enforce Worcester's clothing donation receptacle ordinance. Toomey said, "Over the past several years, we've all gotten a number of phone calls from people saying 'Oh my god, look at the dumping at these collection boxes.'"
Worcester's ordinance on clothing donation receptacles reads: "A clothing donation receptacle shall be regularly emptied of its contents so that it does not overflow and result in clothing donations being strewn about the surrounding area...The registrant shall maintain the area around the receptacle clean and free of trash." The ordinance also states that only clothing is allowed in the donation boxes.
According to Worcester’s ordinance, only 100 of these donation boxes can exist at a time in the city. The city regulates where they can be located. It is also at the City's discretion to order these boxes removed following routine dumping and uncleanliness.
"This year...it had gotten to a crisis point," Toomey said. "We would take things away and the next day it would be as if nothing had ever happened. It really boggles one's mind that a collection box for clothing is now all of a sudden is a collection boxes for couches...tvs...monitors, printers...It became a health and safety issue for the city. We have no idea what people are throwing in these bags and donating to the companies that have the boxes."
Worcester Companies Own Clothing Boxes
Planet Aid’s donation boxes are not the only ones pulling a profit in Worcester. Two for-profit companies based out of Worcester also have placed donation boxes throughout the city.
A second company, Mint Green Planet, Inc., with offices on Canterbury Street in Worcester had nearly the same presence as both Earth Aid and Planet Aid, but had substantially cleaner donation bins with less clutter around them. Proceeds from Mint Green Planet's collections go to Boys & Girls Clubs across the state.
GoLocalWorcester found that Earth Aid’s boxes were consistently overflowing with trash and tried to contact Earth Aid’s president Wioletta Saleba, but attempts to call and email were unsuccessful. In fact, the website listed on the donation boxes, EarthAidRecycles.com, is not a working website. Each attempt at the phone number provided, 1-888-7-EARTH-0, played only a “telephone music DJ” and then went to a non-descript voicemail.
According to Susan Daly, Friendly House’s administrative assistant, Earth Aid does donate money to Friendly House on a monthly basis. Daly also gave GoLocal the name of Pino Conte as the representative of Earth Aid that deals with Friendly House. According to Conte’s personal Facebook page, he is the director of Earth Aid. However, according to corporate filings of the state secretary’s office, Saleba is listed as Director, President, Secretary and Treasurer.
Conte could not be reached for comment.
Worcester Enforces City Regulations
These three donation boxes (pictured) were owned by the Saint Vincent de Paul Society. At some time shortly after Labor Day, the boxes were removed.
Saint Vincent de Paul Society is based out of Stoughton. Calls to the organization went unreturned.
It appears as if Planet Aid is taking Worcester's ordinance seriously in at least two of the several Planet Aid donation box locations that GoLocal visited. On these boxes, notices were present from Planet Aid that read: “Dumping will result in a $200 ticket from the City of Worcester.”
Editor's Note: This story has been updated with responses from Planet Aid.
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