Donating old clothes to a charity in a parking lot bin seems like a good idea. A closet is cleaned out and someone less fortunate gets some usable clothes. However that’s not always how it works these days. Recycled clothing is becoming a big business. [...]
The used clothing industry is changing. Companies like Planet Aid don’t give the donated clothes to needy families. They take the donations and sell them off as rags for a profit. They then give a portion of that money to charity. Planet Aid is a thriving business based in Holliston. [...]
We sent Daniel Borochoff of the American Institute of Philanthropy Planet Aid’s most recent financial statements. He wasn’t impressed, saying “it’s really similar to the model of a corporation that would give a portion of its profits to charity, rather than the other way around”.
Critics are also troubled by the fact that Planet Aid only contributes to its own charities. That makes tracking the money virtually impossible.
We asked Planet Aid’s general manager Fred Olson why they weren’t evaluated by the Better Business Bureau. He maintained they are in the process of filing with them. But a spokesperson at the Better Business Bureau told us that they are still not happy because, even after delays, Planet Aid has not filed enough documents for them to be properly evaluated. [...]
This is a summary extract from the full article as it appeared on CBS Boston, Nov 17, 2006
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