12 Reasons to Think Twice Before Donating to Goodwill

Goodwill, a household name in thrift shopping and charitable donations, may not be as benevolent as it seems. 

A shocking 2011 investigation by NBC News revealed that some Goodwill locations were paying workers with disabilities as little as 22 cents per hour.¹ This discovery has sparked a heated debate about the organization’s practices. 

Here are 12 reasons why you might want to think twice before making your next donation to Goodwill.

1. Questionable Executive Compensation

Goodwill’s top brass rake in hefty salaries while many workers struggle. A 2013 Omaha World-Herald investigation found executives earning up to $400,000 annually, with the CEO pocketing a $519,000 bonus in 2014. (ref)

This stark contrast in compensation raises eyebrows about the organization’s priorities.

2. Subminimum Wages for Disabled Workers

Under a controversial provision of the Fair Labor Standards Act, Goodwill pays some disabled workers less than minimum wage. (ref) Of its 105,000 employees, 7,300 fall under this “special wage certificate” program.

Critics, including the National Federation of the Blind, denounce this practice as discriminatory and exploitative.

3. Minimal Charitable Impact

Despite claims of supporting job programs, some Goodwill branches allocate surprisingly little to their stated mission.

The Omaha World-Herald found that between 2011 and 2015, none of the local store revenues supported job programs. (ref)

This disconnect between rhetoric and reality is concerning.

4. Overseas Dumping of Unwanted Items

Goodwill has been criticized for shipping unsold items and e-waste to developing countries. This practice not only contradicts the organization’s environmental claims but also potentially harms communities abroad.

5. Safety Concerns for Workers

Workplace safety issues have plagued some Goodwill locations. In 2017, a California employee tragically died in a trash compactor accident, leading to citations and fines against the organization. (ref)

Such incidents raise questions about worker protection measures.

6. Whistleblower Retaliation

Employees who speak out against unsafe conditions or unethical practices often face retaliation. David Goudie, who raised concerns about safety issues, was fired after a fatal accident at his workplace.

This pattern of silencing critics is deeply troubling.

7. Inflated Pricing at Retail Stores

Many shoppers have noticed a trend of increasing prices at Goodwill stores.

While the organization aims to generate revenue for its programs, some argue that these price hikes defeat the purpose of affordable secondhand shopping.

8. Limited Resale of Donations

Surprisingly, only about half of the clothing donated to Goodwill is deemed suitable for sale in their retail stores. (ref) This raises questions about the efficiency of their donation processing system and the ultimate fate of unsold items.

9. Aggressive Lobbying Practices

Goodwill has lobbied for increased regulation of donation boxes, which smaller charities view as an attempt to monopolize the clothing donation market. This corporate-style behavior seems at odds with Goodwill’s nonprofit status.

10. Lack of Transparency

Despite being a nonprofit, Goodwill’s financial practices and allocation of resources often lack transparency.

This opacity makes it difficult for donors to understand how their contributions are truly being used.

11. Environmental Impact Concerns

While Goodwill claims to divert items from landfills, the organization still contributes to textile waste.

Only 5% of donated clothes end up in landfills, but this still amounts to a significant environmental impact.

12. Alternatives with Greater Impact

Many local, grassroots organizations offer more direct and transparent ways to support communities.

By donating to these alternatives, you can often ensure a greater percentage of your contribution directly benefits those in need.

Source:
1. NBC News