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Background
In recent years, there has been a dramatic surge in the number of clothing bins popping up in gas stations, strip center and mall parking lots throughout the State of New Jersey. These bins resemble trash dumpsters. Some are left unkempt with donations overflowing out of them. Many are vandalized. Beyond being “eye sores,” these clothing bins often mislead the generous donors who deposit clothing and other contributions in them. While a bin may feature a charity’s name on its exterior, many are operated by for profit entities that essentially “rent” the charity’s name and give them 4-6% of the proceeds from the donations. Goodwill Industries of Southern NJ & Philadelphia has been collecting donations for 60 years without the use of bins. All Goodwill donation centers are staffed by company representatives to assist donors and issue receipts for tax purposes. As such, Goodwill was a leading advocate for change in the State.
The Introduction of Senate Bill 597
To protect the interests of donors, the NJ Senate drafted a bill (S 597) that makes it illegal for organizations to own a clothing bin without first obtaining a permit from the municipality in which it is placed. Governor Corzine signed the bill into law in December 2007. It will go into effect, January 1, 2009 and will also apply to all clothing bins currently in place.
About Senate Bill 597
- Senate Bill 597 will give municipalities tighter control over regulating the placement and use of donation clothing bins. Application and renewal fees will be required to make up for the costs of enforcing the new bill.
- Only registered charitable organizations can obtain a permit and municipalities have the right to refuse any applicant’s permit if the location of the bin is a safety hazard or if it is within 100 yards of a school, public building, fuel or flammable liquids. Bin operators must also have written consent from the property owner stating permission to place the bin on their property.
- Bins must provide full disclosure including the owner’s name and contact information. This must include the names of all charities/organizations and persons who will receive proceeds from the donations as well as the permit number and expiration date.
- Bin owners must provide an office in which the public is able to call during normal business hours to learn more about how the proceeds from the donations are being allocated or spent.
- If bin owners do not comply with this bill they can be fined up to $20,000. If within 45 days of violation the owner has still not filed for a permit, the bin will be seized and all donations will be sold at auction. All proceeds will be deposited into a general fund if seized from the Division of Consumer Affairs or given to the municipality if local law enforcement agency seized the bin.
To learn more about Senate Bill 597, call
Goodwill at 856.439.0200, ext. 230 OR Paste the link http://www.njleg.state.nj.us/ in your web browser. On the homepage under Bills in the left column, click Bills 2006-2007 then Click Bill Number and enter 597 in the Search by Bill Number box.
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