Planet Aid Revisited: Not a Charity Afterall, Do Not Donate

Planet Aid is not exactly the “charity” that we previously thought. In fact, we would like to update our earlier post with the following new information to give you a more well-rounded perspective on this organization. Our sincere apologize to our readers for this oversight, as we were initially excited by the premise and mission of the group. A special thank you to our readership, especially Genna, for bringing these new insights to our attention.

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Photosource: www.thebollard.com

First, Planet Aid seems to have a controversial record as a charitable organization, in fact, the Better Business Bureau has refused them as a ‘charity’. One of the ways in which Planet Aid has failed to be a ‘charity’ is the amount of money produced by donated clothing that is put back into development programs. The American Institute of Philanthropy (AIP) gave them an “F” in their December 2006 “Watchdog Report” after finding that Planet Aid only spent just 23 percent of total revenue on programs for the poor. The AIP requires non-profit charitable organizations to spend at least 60 percent of revenue on these programs. The best rated organizations spend up to 75 % of revenue on charitable programs.

Planet Aid also has tenuous connections with the Danish cult-like organization called Tvid. Their founder also started Planet Aid’s partner organization, Humana People-to-People.

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Photosouce: www.thebollard.com

Tvid’s Founder, Morgens Amdi Peterson, originated as an alternative school teacher who had received funding from the Danish government to support his school, and then had that funding recinded when the school was found to have ‘cultlike’ qualities.

After some controversies arose surrounding his school, Peterson went underground for two decades! During his decades underground, Danish and American prosecutors believe he “masterminded a global expansion of Tvind that included both non-profits like Planet Aid and for-profit enterprises that now collectively number around 150, with hundreds of millions of dollars in total assets.” Prosecutors allege that funds raised from these organizations are transferred between Tvind’s non-profit and for-profit entities, which share many of the same members and corporate officers.

Peterson was arrested in Los Angeles in 2oo2  and extradited to Denmark where he and other top Tvid officials were to stand trail for charges of tax evasion (11 million) and embezzelment (9 million). However, Peterson and four other Tvid leaders fled Denmark before they were served court papers and are still at-large. It was discovered at this time that Peterson had been living in a multi-million dollar pad on an island off the coast of Florida with a $5 million dollar yacht, the “Butterfly McQueen.”

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Butterfly McQueen Yacht

Photosource: www.yachtdevelopments.com

Of course Planet Aid has denied any funny business. We cannot know for sure how involved Planet Aid is in all this, or if funds are being used to support these men or Peterson’s new $5 million dollar yacht, but we do know that Planet Aid is not recognized as a charitable organization by any of the most respected watchdog organizations in the United States or the world, and that just the thought of someone using the needs of poor children in Africa as a front to get rich is repulsive.

So where does this leave us? Well, our opinion is to steer clear of this organization and not to donate a darn thing, but of course we leave it up to you. At the same time, we continue to strongly encourage recycling all your old clothing or let someone else enjoy it. So for now, lets stick to Goodwill and Salvation Army, as well as your local clothing swap. Tell us about your favorite clothing donation option. We want to hear from you.

By: Julia Rea

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