A year ago, Roger Helle, executive director of Teen Challenge of the Mid-South, was frustrated that out-of-state, for-profit groups were setting donation bins out around the city, competing for donations with local nonprofit organizations like Teen Challenge, Salvation Army and Goodwill.
Now, he’s happy to hear the state is not only tightening regulations on donation bins, but organizations that fail to comply will be penalized and potentially told to pack up their collection sites.
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More information about the new state regulations is available at sos.tn.gov.
Starting this week, the Tennessee Secretary of State’s Division of Charitable Solicitations and Gaming will begin fining organizations who don’t put proper labeling on their collection sites – including donation boxes, trailers or storage containers. Those that violate the notice requirements will face up to $5,000-per-violation fines and ultimately an injunction to cease collections until they are in compliance.
Any entity soliciting collections via a donation bin must also now get a notarized certificate of permission from property owners and must provide certain information, such as name, address, phone number, email address and statement of charitable cause on all donation bins.
“I think it’s a good start,” Helle said. “Gradually, they’re starting to get them removed.”
Helle’s concern has been that people wishing to donate goods for a good cause were being misled by groups and organizations that set out donation bins with unclear messaging, collecting donations to turn around and sell for profit elsewhere.
He feared donations to those groups would negatively affect incoming donations for groups like Teen Challenge, Goodwill and the Salvation Army.
Teen Challenge, a faith-based group aimed at fighting drug addiction, relies heavily on donations for operating income. Teen Challenge sells the donations it receives at wholesale prices to America’s Thrift Store, and makes around 15 to 18 percent of its budget that way.
Groups like Teen Challenge have pressed state leaders for solutions.
Helle is reluctant to say the efforts of Chattanooga nonprofit leaders resulted in the donation box changes.
“But I’m sure we wore them down,” he quipped.
State officials, meanwhile, say the new donation bin regulations and penalties are aimed at helping consumers identify the organization and cause they’re supporting.
In fact, one extension of the crackdown calls for the public’s help identifying noncompliant donation bins. State officials ask that anyone who finds a donation box without the proper identification and contact information snap a photo and tweet it to them, using #BinCheck.
“The law mandates bin operators disclose invaluable information that lets Tennesseans know exactly where their donation is going before they drop anything inside a bin,” Tennessee Secretary of State Tre Hargett said in a news release.
Already, state officials have identified two boxes in Chattanooga, both on Cummings Highway and both owned by The Greenhouse Recycling, that are out of compliance. And the boxes’ owners have not returned phone calls, emails or mail, said Adam Ghassemi, director of communications at the office of the secretary of state.
If a donation box owner ignores fines and injunctions, the group or organization will be held in contempt of court. Also, any property owner can have a box removed unless the owner of the box has notarized permission to be there.
In the case of removal, all costs are levied on the owner of the donation box.
Contact staff writer Alex Green at agreen@timesfreepress.com or 423-757-6480.