Editorial: Research before you donate

A local woman’s efforts have helped put a spotlight on dubious practices by so-called charities.

An area resident’s crusade to expose a charity as a scam is a reminder to all to research nonprofits before donating.

Kris Alonge has spent a decade trying to get the attention of federal officials about Planet Aid, a Massachusetts-based nonprofit that collects used clothing in big yellow bins placed in Lawrence and elsewhere around the country. The clothing is then sold or recycled, purportedly with the proceeds used to provide food and education programs to impoverished communities in Africa. The charity has received more than $100 million in federal U.S. Department of Agriculture grants to provide aid in Africa.

There are serious questions about Planet Aid and its ties to Mogens Amdi Petersen, a fugitive wanted by Danish authorities on tax evasion and charities fraud charges. According to a report by the Center for Investigative Reporting, Petersen is believed to be living at a $25 million compound in Baja, Mexico, paid for by proceeds from Planet Aid and similar charities created by the Teachers Group, a cult-like organization that Petersen founded in the 1970s and that is now the umbrella organization for Petersen’s charities and businesses.

The Center for Investigative Reporting’s research into Planet Aid showed that clothing donations are turned over to a for-profit business also run by the Teachers Group that then sells the clothing, often abroad. An FBI file on the Teachers Group said “little to no money goes to the charities” and that most of the funds are diverted for personal use by group members, according to the Center for Investigative Reporting story. Charity Watch said that in 2015, Planet Aid took in an estimated $43 million in donations but that only about 17 percent went toward the group’s charitable mission.

Worries about Planet Aid are not new. Questions were raised more than a decade ago when the organization wanted to first place its bins in Lawrence, but after meeting with city officials, the city felt comfortable promoting Planet Aid as a legitimate recycling option. Planet Aid remains one of the recycling options promoted on the city’s recycling website.

Planet Aid has denied the allegations in the Center for Investigative Reporting story. And the U.S. Department of Agriculture has said trips to Africa to inspect Planet Aid projects funded by the USDA grants have uncovered no wrongdoing.

Alonge, who has been praised for her persistence and credited with being a whistleblower on Planet Aid, said she believes Planet Aid takes donations away from worthy charities, particularly local ones.

Alonge is no doubt right. What’s unfortunate is that even the most modest research — googling Planet Aid, for example — would expose the serious questions about Planet Aid’s activities.

The Federal Trade Commission advises potential donors to get detailed information about a charity’s identity, mission, costs, and how the donation will be used before contributing. Organizations such as the Better Business Bureau, Charity Navigator, Charity Watch and GuideStar are available online and can provide helpful data and ratings about thousands of nonprofits.

Legitimate charities and nonprofits are vital to any community, but the efficiency and quality of the programs offered can vary widely. The Planet Aid saga underscores the importance of doing some homework before donating.