Planet Aid meets the 20 Standards for Charity Accountability.
Complaints
Number of complaints processed by the BBB in the last 36 months: 1.
Bin Removal
The organization addressed the complaint issue brought to its attention: 1.
(This complaint involved an individual seeking a donation bin removal).
BBB WGA Comment
In finding that Planet Aid meets BBB Charity Standard 13, which addresses the accuracy of the charity's allocation of expenses, BBB WGA considered the following among other things: Planet Aid's primary activity is the collection of clothing and other items through donation bins in public places. Part of the charity's stated mission is the protection of natural habitats through the recycling of these donated items. 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. In 2019, Planet Aid split these bin costs evenly between both programs and fund raising. In view of the above, BBB WGA is reporting that Planet Aid meets this standard but will revisit this circumstance if there is a significant change in the allocation of bin expenses.
Planet Aid reports that it works to reduce waste and increase the efficient use of vital resources, while helping disadvantaged populations of the world create lasting positive change. Through its textile collection and reuse/recycling program, Planet Aid collects clothes, shoes and other items via bins placed throughout 19 states. The organization reports that collecting these items saves landfill space, saves water, reduces the use of fertilizer and pesticides in cotton production and reduces greenhouse gas emissions. Items that are collected are sold and packaged to distributors, mostly overseas. In 2019, Planet Aid reported collecting and recycling 47,000 tons of clothes, shoes and other textiles which it states reduced 149,000 metric tons of CO2 from being released to the atmosphere. The organization reports that its international development program works in 12 countries focusing on education, food security, sustainable agriculture, health and hygiene, gender equality and training. Planet Aid reports that 95% of its international development grant funding is paid to support programming via registered in-country organizations that are part of the Humana People to People (HPP) Federation. The organization reports that HPP is a network of 30 organizations engaged in humanitarian and development activities in Africa, Asia, Europe, North America and South America.
For the year ended December 31, 2019, Planet Aid's program expenses were:
| U.S. clothing collection and habitat protection |
$25,431,345 |
| International aid |
$9,708,727 |
| International training and capacity building |
$208,607 |
| Total Program Expenses: |
$35,348,679 |
*2019 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Method(s) Used:
Grant proposals, Internet, Other
Fundraising costs were 10% of related contributions. (Related contributions, which totaled $33,869,086, are donations received as a result of fundraising activities.)
This organization is tax-exempt under section 501(c) (3) of the Internal Revenue Code.It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
The following information is based on Planet Aid's audited financial statements for the year ended December 31, 2019.
| Source of Funds |
| Sales of donated clothing and other goods |
$33,869,086 |
| Contracts - federal |
$6,764,254 |
| Interest and other revenue |
$417,779 |
| Total Income |
$41,051,119 |
- Programs: 83%
- Administrative: 10%
- Fundraising: 7%
| Total Income |
$41,051,119 |
| Program expenses |
$35,348,679 |
| Fundraising expenses |
$3,227,947 |
| Administrative expenses |
$4,204,292 |
| Other expenses |
$0 |
| Total expenses: |
$42,780,918 |
| Income in Excess of Expenses |
$-1,729,799 |
| Beginning Net Assets |
$9,315,268 |
| Other Changes In Net Assets |
$49,734 |
| Ending Net Assets |
$7,635,203 |
| Total Liabilities |
$8,811,139 |
| Total Assets |
$16,446,342 |
Note: In the above financial section, ‘other changes in net assets’ refers to foreign currency gain ($49,554) and a net gain on sale of property and equipment ($180).