SMART Position on Regulation of Donation Boxes

Discussion: In the recent past, several states have enacted legislation and/or regulations regarding donation boxes used to collect second hand textiles. In 2007, for instance, the New Jersey State Legislature approved a bill which requires, among other things, that: 1) permits be obtained before donation boxes are placed; 2) labeling which clearly identifies the recipient of any donations is placed on the boxes; and 3) designates specific locations when donation boxes can be placed. These actions are needed, according to proponents, to ensure that donation boxes are properly maintained, safely operated, and are not being used for fraudulent purposes.

Position: SMART supports the need for "transparency" when it comes to the operation of donation boxes so that donors will know who benefits from their donations. Without transparency, it is likely that donations will eventually diminish. Similarly, SMART recognizes that zoning concerns exist throughout the country that can result in permitting requirements and/or restrictions on the placement of donation boxes. For these reasons, SMART does not oppose most governmental efforts to regulate donation boxes. We do, however, reserve the right to oppose governmental actions that present unnecessarily onerous compliance requirements for our industry and/or threaten our members with significant penalties for unwitting violations.