Planet Aid is a non-profit organization founded in 1997 in Massachusetts.
Planet Aid's primary activity is the collection of clothing and other household items for resale and recycling. It operates in 19 states, where it collects items through donation bins placed on sidewalks, parking lots, and other public areas. Planet Aid uses a small portion of the proceeds from resold donated clothes and recycled textiles to fund international development projects via organizations in Africa, Asia, and Latin America. The organization has also received U.S. government grants to distribute food and other aid in Mozambique, Malawi, and Zimbabwe.
Investigations have found discrepancies in the stated amount of Planet Aid's charitable expenses, as well as alleged links between Planet Aid and the controversial Danish organization Tvind, described as a "cult" whose leader, Mogens Amdi Petersen, is wanted on charges of fraud and tax evasion. Planet Aid has denied these allegations.
The American Institute of Philanthropy's CharityWatch has given the organization an "F" rating, disputing Planet Aid's assessment of its charitable spending.
Video Planet Aid
Activities
Planet Aid collects used clothing through a wide network of donation bins placed on public and private property, donation centers, and curbside pickups, with the aim of helping the environment, reducing waste, and raising funds to fight poverty. Planet Aid partners with local businesses and other organizations to place bins on their property, with an aim to make donation more convenient and thus increase recycling rates. They claim that recycling used clothing and shoes contributes to reduced emissions of greenhouse gases and helps to reducing the amount of waste that municipalities must haul from residences.
Charities like Planet Aid that collect used clothing sell them both domestically and on the international market. Planet Aid indicates that it sells the donated textiles it collects to support sustainable development in impoverished communities around the world. It also claims that since 1997, it has given more than $90 million in support of over 60 projects in 15 countries. Planet Aid also indicates it supports various charities in the United States through direct donations of clothing and other goods.
The US State Department sponsored an educational visit of Planet Aid's Elkridge, MD headquarters for a delegation of Russian recycling experts to learn how Planet Aid sorts and handles 100 million pounds of donated textiles every year and how they can develop similar practices and infrastructure in that country.
Maps Planet Aid
Work in Africa
Planet Aid participates in a number of programs in Africa. In 2012, they partnered with the U.S. Department of Agriculture for the Farmers Club project, which provides school meals and teacher training in Mozambique and Malawi. These programs are run through Development Aid from People to People - Malawi (DAPP Malawi) and Ajuda de Desenvolvimento de Povo para Povo (ADPP), who, along with Planet Aid, are members of the Humana People-to-People Federation.
The DAPP In-Service Teacher Training Program in Malawi, supported by Planet Aid, was one of only three global programs to be awarded the prestigious UNESCO-Hamdan bin Rashid Al-Maktoum Prize in 2016.
They have also partnered with the World Initiative for Soy in Human Health program, run by the American Soybean Association, to provide nutrition education in Mozambique.
The U.S. Agency for International Development has partnered with Planet Aid to distribute food aid in Zimbabwe, awarding them 93.8 metric tons (92.3 long tons) of prepackaged food in 2011 and 112.6 metric tons (110.8 long tons) in 2012.
Litigation
In 2014, Planet Aid filed a lawsuit against Ypsilanti Township, Michigan, one of an increasing number of cities that had passed a local ordnance banning charity collection boxes over concerns about litter and vandalism. In April 2015, a federal appeals court upheld an earlier federal court ruling that Planet Aid's collections bins constitute a protected form of free speech and struck down a local zoning restriction in St. Johns, Michigan that had outlawed all such collection boxes. Since winning its federal ruling, Planet Aid has sued several other cities with similar ordinances, and used the decision to force local leaders to craft regulations that allow placement of such boxes. Planet Aid CEO Ester Neltrup told the Los Angeles Times that Planet Aid supports some regulation on clothing recycling, but opposes bans on donation boxes.
Thrift stores
On October 1, 2015, Planet Aid opened its first thrift store in Baltimore as part of a pilot project. The store employed 30 people and offered "tens of thousands of new items every week," in addition to serving as a donation center, according to an article from the Baltimore Sun. Proceeds from purchases in the store go towards Planet Aid's sustainable development projects.
Charity accountability
The WGA lists Planet Aid as an accredited charity, but CharityWatch has given the group an "F" rating. This difference arises from differing views of how Planet Aid justifies its mission and how it accounts for spending on charitable programs. CharityWatch disagrees with Planet Aid's claim that it spends 84% of its budget on charitable projects and instead argues that Planet Aid actually only spends 17% of its budget on these programs, based on 2015 financial documents. In comparison, Goodwill Industries International, another non-profit organization that collects used clothes, spent 82% of its revenue from sales of donated items on charitable services in 2011, according to a spokesperson. CharityWatch justifies its stance on how Planet Aid allocates its expenses:,
In 2014 Planet Aid spent $28.4 million to collect and process these non-cash donations, and reported these costs as Program expenses. CharityWatch disagrees with Planet Aid's reporting [...] The expenses a charity incurs to raise donations, whether the donations are in the form of cash or non-cash items like donated clothing, are fundraising expenses, not program expenses.
Regarding Planet Aid's position on the recycling of used clothes, CharityWatch states,
In 2014 Planet Aid brought in almost $41 million from selling these items. 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.
The BBB Wise Giving Alliance (WGA) disagrees with CharityWatch's assessment of expenses and states that:
Planet Aid's position is that, by collecting and selling these products, it is keeping them out of landfills that have a negative impact on the environment. Based on this, Planet Aid considers costs associated with the bins used to collect items to be serving both a programmatic (recycling) and fund raising purpose.
Alleged connection to Tvind financial crimes scandal
Media and government investigations have linked Planet Aid, through its board members and financial dealings, to a controversial organization from Denmark called the Teachers Group or Tvind, led by international fugitive Mogens Amdi Petersen. Tvind has been characterized by former members as a secular/political cult, and Tvind leaders have been prosecuted in Denmark for serious financial crimes, with two convictions in trials in 2006 and 2009, respectively. Planet Aid denies any such links, although they are a member of the Humana People-to-People Federation, an offshoot of Tvind, and several leaders of Planet Aid had been identified as having ties to Tvind and Mogens Amdi Peterson. Planet Aid co-founder and board chair Mikael Norling is a Tvind official, and he was present at the preliminary hearings for the Danish Tvind trials in September 2002. Marie Lichtenberg, the director of international partnerships at Humana People to People and Planet Aid, was identified by Danish law enforcement as a manager of Tvind's global financial operations. Josefin Jonsson, a founding director of Planet Aid, was also a founding director of IFAS, a foundation identified by Danish prosecutors as a front organization used by Petersen for embezzlement and tax fraud.
In March 2016, an investigation co-produced by the Center for Investigative Reporting (CIR) and the Public Radio Exchange reported that, according to interviews with "several (unnamed) insiders" of Planet Aid and associated Humana People-to-People member organizations, including "at least a dozen people inside" DAPP Malawi, "50% to 70% of the US government grant money was being siphoned away" to Tvind. Planet Aid denied these allegations, and filed a lawsuit against the Center for Investigative Reporting, alleging a conspiracy to interfere with Planet Aid's business. The USDA also issued a statement saying that "none of their formal compliance reviews, their ad hoc reviews, their side evaluations, or their audits of the Planet Aid projects have yielded any significant findings or concerns."
A follow-up report by CIR cited a 2001 report by the United States Federal Bureau of Investigation that identified Planet Aid, Humana People to People, and DAPP as part of a network of organizations that diverted charitable funds for personal use by Teachers Group members. In response, the United Nations Children's Fund halted funding to these organizations. An August 2016 report by the British Broadcasting Corporation in partnership with the Center for Investigative Reporting led the United Kingdom Department for International Development to suspend payments as well.
External links
- Planet Aid website
- Planet Aid at Guidestar
- Planet Aid page at the BBB Wise Giving Alliance
- Planet Aid page at CharityWatch
References
Source of the article : Wikipedia
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