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Senator Scutari Insists Profits From Donations Must Benefit Charities

TRENTON – Today, legislation sponsored by Senator Nicholas P. Scutari (D-Union) and Senator Joe Kyrillos, Jr. (R-Monmouth) was released from the Assembly Consumer Affairs Committee. S 597 requires the disclosure of certain information for donation clothing bins placed by charities.

“People have a right to know that their charitable efforts are benefiting those in need, not those looking for a profit. Right now, contributors will put their donations into a bin bearing the name of a charity and the profits may actually benefit a for-profit organization instead,” said Scutari.

S-597 adds to the Charitable Registration and Investigation Act. Organizations must be registered as a charitable organization to apply for a permit to put out a clothing donation bin, and the permit and contact information must be posted clearly on the bin for the contributor’s viewing information.

Scutari says, “This bill will ensure people that their clothing donations are going to charities by requiring a permit to operate the bins. Charitable Organizations will have to notify their local law enforcement of their bins and where the profits are going.”

This bill has been modified from its original version to require more information from those organizations that put out donation bins. For-profit organizations have been known to pay a charity a minimal sum for the use of the name of their organization on the bin and then keep the donations to sell. With this bill, the charities would have to report annually where the proceeds went in order to renew their permit.

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