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New Charity Raises Concerns
Watchdog group says most money goes for expenses, not to the needy You may have seen the boxes popping up around town. A new charity wants the clothes off your rack to raise money, but it's also raising suspicion and questions. Email Address: sixonline@wowt.com |
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You may have seen the boxes popping up around town. A new charity wants the clothes off your rack to raise money, but it's also raising suspicion and questions.
Peg Schneider donates clothes like she buys them. "I'd like to know I’m getting the biggest bang for my buck.” So before dropping old clothes into a Planet Aid box, she collected details on the charity. "Make sure it's doing what you want it to do."
Planet Aid sells recycled clothes to fund programs in poor, undeveloped countries. A spokesman says nationwide, the charity earned $20 million last year, donating $5 million to overseas causes. The rest, $15 million, pays various expenses for collecting clothes that includes the highest salary of $100,000.
“We pay our people a living because we think they should make a living, but nobody's getting rich off these clothes, the profits are going to people who really need it," says Plant Aid spokesman Doug Bailey.
But a philanthropy watchdog group gives Planet Aid an “F” for efficiency, claiming that for every $100 raised, Planet Aid has $73 in expenses. And it's competing for clothes with local charities like Goodwill.
Last year, Goodwill received nearly 20 million pounds of donations. That's up 8%. So far, Goodwill hasn't seen any affects of the new clothes recycling charity that's come to town.
“Yes, I'm concerned,” says Frank McGree of Goodwill Omaha. “Obviously we need the material to fund our programs. If they continue to grow and ultimately did affect our quantities, then I’d be worried about it."
Though Planet Aid may be a worthy cause, Schneider says the charity isn't a good fit for her clothing donation. “It just wasn't clear to me where the money was going."
Planet Aid disputes the low grade by the national charity watch group. It does not provide assistance to any groups that help the needy in our area, but eventually, Planet Aid promises to donate money to charities which are chosen by merchants that allow collection boxes on their property.







