Montreal

Charity says borough crackdowns on for-profit donation bins affect them too

A Montreal non-for profit charity says stricter borough rules on clothing donation bins is taking charitable organization down with the fraudsters.

Laval, Hochelaga-Maisonneuve limit number and location of donation boxes after for-profit scams uncovered

Several jurisdictions in the Montreal area have moved to crack down on for-profit donation bins. (Radio-Canada)

A Montreal non-for profit charity says stricter borough rules on clothing donation bins is taking charitable organization down with the fraudsters.

In an effort to crack down on for-profit donation boxes, boroughs like Laval and Hochelaga-Maissoneuve have adopted motions to limit where and how many bins are allowed.

"Most municipalities and boroughs in Montreal either prohibit the [donation] boxes or they their regulations are so restrictive that we can't take advantage of the boxes and fulfill our mission," said Philippe Siebes, CEO of Le Support.

The organization raises funds for Quebecers with intellectual disabilities and is fully funded by profits from donated clothes and other items.

But scammers smelled a good business opportunity and cases of for-profit donation bins have multiplied to the benefit of non-existent charitable causes.

Stricter rules on clothing donation bins will go into effect in Pierrefonds-Roxboro in January 2017, borough mayor Jim Beis says. (Radio-Canada)
"Business were putting the boxes all over the place and residents were complaining," said Jim Beis, borough mayor for Pierrefonds-Roxboro. 

The West Island borough's tougher regulations will come into effect next January.

Organizations that wish to set up donation boxes will then need to acquire a license and put their boxes in specific areas. 

The borough estimates 89 groups will be given a licence with a limit of five boxes each.

Siebes says the restrictions will deter people from donating.

"We put boxes on small business lots where there is a lot of traffic. If someone has to travel five kilometres to donate, they won't do it. They'll throw away their clothes," he said.

A coalition of non-profit charities, including Le Support, lobbied Quebec municipal authorities in May 2015, pushing for more leeway to collect clothes in donation boxes on their territories.

One solution proposed by Siebes was to give permits solely to organizations that have registered charity status with the federal government.

With files from Anne Levasseur of Radio-Canada