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Used Clothing Bins
Givewell MEDIA RELEASEmaking a difference made easy3rd March 1998  Avoiding the Pitfalls with Used Clothing Bins The first of a series of surveys aimed at helping consumers develop better "giving" habits was released today by Givewell. Givewell is a business dedicated to making it easier for consumers to make a difference. It's giving surveys will examine common fundraising practices and develop better giving strategies. The objective in this used clothing survey was to examine a range of methods of conveniently donating used clothing and identify the method(s) which would deliver more value to the charity involved. Our survey covered over 50 bins in the Sydney region operated by a total of 9 organisations. Of these 4 were charities and 5 were independent contractors in association with a charity. Another 2 charities which process large quantities of used clothing were also interviewed to obtain information on their collection and distribution process. Commenting on a few concerns noted in the survey, Michael Walsh, Principal of Givewell said -
" We conducted our research by reading what is printed on each
bin and found that in many instances this was not helpful. One bin
(which was located in a council owned car park) showed a name and
phone number and did not mention the name of a charity at all.
Another bin made long disclosures in un-punctuated language quoting
an authority to fundraise which expired more than two years ago.
A third, which received 5cents per kilo of clothes donated from the
contractor, had terminated the arrangement. However, the bin was
still open and the inscription on the bin was unchanged. Over half
the bins had what we felt was inadequate disclosure. Compliance
with state fundraising regulations, often by bins located on council
owned property, was also an issue. "So, are there enough convenient options which give consumers confidence and ensure the charity's cause is well supported by the donation? To achieve this Givewell defined 3 options :-
"Charities which run 'op shops' also tend to have the scale of
operations necessary to process the clothing themselves. Our
survey documents two examples of this process in action. Some
clothes become rags while others go to Australians in need, are
sent overseas or are sold to raise funds to help the charity's
cause. It also avoids the inherent problems with operating bins
like theft, vandalism and public risk."For consumers who cannot use Option 1, Givewell recommends the use of a charity owned bin (Option 2 ) which shows it is a member of N.A.C.R.O. This is a group of charities who guarantee that all goods and proceeds support their cause. If consumers want their used clothing donation to make bins operated by private contractors should be treated with caution (Option 3). Around half of the bins examined fall under this category. Finally, in summing up the survey Michael Walsh said -
"While used clothing may not be worth much to the donor it is
big business for charities. This means that used clothes are a
valuable donation which does make a difference. So, it is
important to be aware of the pitfalls and give to charities who can
realise that value."
ArticlesEditorial: Charity in the binAustralians are charitable by nature, and our level of giving has never been criticised. So it comes as a shock to learn that many good deeds mean nought to the needy. Many suburban charity bins do not provide much-needed clothing to the poor and homeless. Instead, they funnel profits to a handful of contractors. Legitimate charities such as the Salvation Army and St Vincent de Paul should not be confused with the private operators who donate a minuscule amount to charity. When you place clothes in their bins, your old suit becomes rags, exported to Asia. Why take care to lovingly recycle that favourite jacket or dress? It's just going to end up shining a shoe in Laos.
The Sunday Telegraph March 22, 1998Only a fraction of clothing end up helping the needy Charities sell almost all the clothing provided by the public, contrary to the common belief that it is given to the needy. An investigation by the Office for Charities has found that more than 95 per cent of donated used clothing is sold. "There may be a misconception that a majority of clothing donated is given to people who are less fortunate," the report says. Proceeds from the sale are used for welfare programs. But private operators of collectionsof collection bins reap most of their proceeds, with many clothes recycled or exported. An average of 5 per cent goes to charity. About 20 per cent of the goods found in bins have to be thrown away. The Smith Family, which has about 700 clothing bins in NSW, relies heavily on donated garments. Chief executive Allan Ryan said the garments were collected in trucks and sorted, with the best going directly to the needy. Others were sold in Smith Family stores, while the bulk of unwearable items ended up procesed for cleaning cloths for export. In 1996-97, the Smith Family recycled 7400 tonnes of clothing in NSW and Victoria, clothing 76,500 people and generating a $3.46 million surplus. Mr Ryan said the profit was used to pay administration costs, meaning that every cash gift went directly into welfare services. St Vincent de Paul, which has 500 bins, sold $12.8 million worth of donated clothes in 1996-97. A spokesman said the best-quality goods, worth $3.6 million, went straight to more than 40,000 families. Unusable items were sold to recyclers. "It's retail for fund-raisiing, not for profit," the spokeswoman said. The Salvation Army sends all wearable clothing to its stores. Major Brian Watters said other garments were exported to Third World countries or sold for recycling as cloths. "All the money is put back into the services. None of it is used for anything else," Major Watters said. Operators say its fair The Sunday Telegraph contacted three private operators listed on clothing bins as donating money to charity. Twintex Pty Ltd will give $60,000 to Children with Learning Disabilities in five years to June, 1999. A Twintex spokeswoman, who declined to be named, said she could not say what proportion of turnover from the company's 80 bins went to the cahrity. Twintex sells the donated clothing to Indonesia or recylces it into cleaning cloths which it sells for as much as $50 for a 20kg bag. The spokeswoman said the bins clearly stated that they belonged to Twintex: "People know that. It tells you we pay a set amount to our charity over five years." Waige and Company provides $120,000 a year to the Australian Foundation for the Diabled from the proceeds of its 450 bins. Director Stephen Bauer refused to disclose the profit percentage, but admitted it was "quite high". "It is very clear what the charity will get out of it." Mr Bauer said his company complied "100 per cent" with State regulations regarding disclosure of earnings to the charity. The third operator, identified as D. Wurst, did not respond to calls. Rag traders 'misleading' - Sonia Milohanic Many clothing bins are a lucrative earner for private business and are not owned by charities. And most of the proceeds from these bins are not given to the needy, a 12 month investigation has revealed. Instead, the donated clothing ends up sold as rags or exported. But people think they are donating clothing clothes to charities, as these privately owned bins - about a third of the 1500 in NSW - display a charity's logo. Lane Cove secretary Bernadine Ferraz was shocked to learn the clothes she thought she was donating to charity might end up as rags. "I don't want people getting money out of my clothes. I might as well chuck the whole lot out if its not going to charity," she said. The system has also been attacked by leading charities, which have demanded stricter controls on operators and clearer information for donors. Allan Ryan, NSW representative on the National Association of Charitable Recycling Organisations, blasts the operators as misleading. "They are masquerading as charities. The clothing you're giving only goes to make somebody wealthy," Mr Ryan says. "You think you're making a donation, but you're actually helping somebody else run their business. It's almost false advertising." The inquiry by the Office of Charities, a Gaming and Racing Department body, found many private traders displayed misleading informtion about how much charities would receive. It found the traders' accountability to the nominated charities was "nearly non-existent". In its draft report, obtained by The Sunday Telegraph, it found the average amount traders paid to charities for each bin each month was $7.64, or about 5.13 per cent of their income. The report proposes an increase to a minimum of $10. It also suggests fairer contracts between charities and operators, and more accurate signage on bins. Mr Ryan, who is also chief executive officer of the Smith Family, urged the public to look for the silver NACRO sticker available only to registered charities. The Salvation Army's Major Brian Watters said the operators were a legitimate business, but the public was entitled to know how much of the money or clothing was going to charity. He said the bins should include a sign showing the percentage of the clothing's value that would go to charity, which as it stood received only "pittance". A separate study has found that signs on many private clothing bins are inadequate.
The Sunday Telegraph March 22, 1998 |
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