Gaia Movement USA

This article is about the charitable organization. For other uses, see Gaia.

Gaia-Movement Living Earth Green World Action USA, Gaia Movement USA, or simply Gaia,[1] is a charitable organization based in Chicago, Illinois which collects used clothing for resale ("recycling") in developing countries. Gaia describes their mission as educational and environmentally-focused; however, charity watchdog groups have challenged the organization's charitable claims, citing a lack of spending on environmental or other programs. Gaia Movement USA has especially come under scrutiny for apparent ties to the Teachers Group/Tvind, a Danish organization linked to a number of clothing-collection charities; investigators say that Tvind misuses charity funds for the personal benefit of its top members, especially founder Mogens Amdi Petersen, who has been in hiding since the late 1970s. Petersen and four other members of the Teachers Group are wanted by Interpol for trial concerning suspected tax evasion and embezzlement.

Overview and history

Gaia Movement bin in Portland, Oregon, April 2015. The placard reads: You: By donating your used and unwanted clothes to Gaia , you are helping improve your community and the environment. Your effort contributes to saving natural resources and reducing greenhouse gas emissions. We: Collect your clothes and shoes to be reused, recycled, and diverted from our landfills. The generated funds from the donated items goes [sic] to support our community programs and environmental projects in the US, Africa and India. / Together We Practice Acts of Greenness / Local: Operate a recycling center. Mobilize volunteers for beautification and cleanup projects. Establish community rain and vegetable gardens. Donate books and toys to people in need. Educate people about current environmental issues. Promote waste reduction, recycling and sustainable living practices. Global: Install rope pumps, low cost irrigation systems and filters in villages. Promote sustainable farming and composting practices. Educate communities on conserving natural resources and sanitation methods. Fund low cost technologies and environmental projects that help to improve thousands of lives.

Gaia movement USA collects donated clothes and shoes in large bins placed along public streets. Part of the donations are sold in local stores while the majority is exported in bulk, primarily to developing countries.[2] The authors of a 2004 Chicago Tribune investigation observed that "The Gaia bins offer what people seem to want: painless altruism, cleaner closets, and utter convenience".[3] Gaia states that their mission is "to educate the general public about the plight of the environment while taking action to protect it".[4]

According to the Chicago Reader, the group was established in 1999 and incorporated in the state of Delaware by Danish-born activist Helle Lund.[2] Memos obtained by the Danish police detailed a grant of $60,000 from Tvind, also known as the Teachers Group (TG), to procure metal collection bins and start Gaia Movement USA's operations in Chicago in 2000.[3] Tvind, which critics liken to a cult organization, reportedly operates a number of similar aid agencies, as well as boarding schools and various commercial enterprises. The ultimate purpose of Tvind's charitable ventures, say investigators, is to enrich its top leaders under the guise of humanitarianism.[5][6]

Journalists have investigated several related clothes-collection organizations linked to Tvind/TG besides Gaia Movement USA. They include Planet Aid, USAgain, IICD and Humana People to People. Most have received failing ratings from philanthropy watchdog groups, yet have managed to place thousands of collection bins on streets in the United States.[7]

Charity accountability

Charity Watch, previously the American Institute of Philanthropy, gave Gaia Movement USA and another Tvind-affiliated group, Planet Aid, a grade of "F" for "lack of transparency, insufficient spending on program services (11 to 44 percent) and too much spending on fundraising", according to the Chicago Tribune.[7] Charity Watch points out that in 2014, only 2% of the more than $3.4 million that Gaia raised from the sale of used clothes was spent on programs related to educational and environmental concerns.[8]

Gaia has claimed the expense of processing used clothing as a legitimate environmental program cost, saying that they are keeping clothes from being disposed of in landfills.[3][9] Charity Watch disputes this, maintaining that collecting and processing donations is a form of fundraising for the organization. They note that Gaia sells the majority of the goods it collects rather than distributing them to those in need, and that many charitable organizations compete for such donations. They assert that used clothes would otherwise more likely end up with another charity or for-profit company than in a landfill.[8] In Gaia's financial report for 2013, expenses related to "recycling" used clothes made up more than 96% of the total allocated to environmental programs.[10]

The Better Business Bureau has reported that Gaia Movement USA failed to meet 8 of 20 charity accountability standards, noting that if the clothes collection program is counted as fundraising, only 1% of Gaia's revenue was going to charitable programs, based on 2008 reports. Gaia afterward reported changing some of its accounting practices so that only a portion of its clothes-recycling activities were defined as charitable services.[7] As of April 2015, a Better Business Bureau evaluation of the organization's governance, finances, and fundraising is in progress.[11]

An investigation by the Chicago Tribune revealed that approximately 4% of Gaia's expenses were listed as "charitable donations to environmental causes" between 1999 and 2002. In what the Chicago Tribune describes as "a typical pattern of money movement among Tvind ventures", the actual benefactor was a group in Switzerland also named Gaia-Movement. The Tribune reports that only a small fraction of the funds transferred was ever spent on environmental work, and that that work was fraught with mismanagement and poor outcomes for the community involved.[3] The Tribune reports that four of Gaia Movement USA's directors had served on the board of the Swiss charity, which had given Gaia Movement USA a large start-up grant in 1999. Gaia Movement USA pledged to donate a comparable sum in return to the Swiss Gaia before funding any other environmental projects. "At worst, the Chicago Gaia's grants might be viewed as Tvind's gift to itself; at best, repayment on a loan", wrote the authors of the Tribune article in 2004.[3]

Environmental claims

Gaia states their main causes to be "recycling of clothes and shoes in USA and other environmental projects (tree-planting, water and sustainable food and energy production) in Africa and Asia".[9] Gaia's application for nonprofit status listed several projects in developing countries relating to forestry, agriculture, and waste management to be supported with funds generated from clothing donations. However, the Chicago Reader reported that in the following two and a half years the proceeds from the sale of clothing were used entirely within the used-clothing operation.[2]

Despite the lack of spending on environmental projects, Gaia Movement bins in Chicago once proclaimed the organization's goals of "saving animals; becoming a part of the Gaia-Movement; practicing deep ecology; [and] acting as partners in the solidary [sic] humanism", along with 18 separate environmental projects, including the establishment of nature reserves, preserving natural habitats including mangrove forests and the barrier reef, environmental education, supporting sustainable forestry, water purification, carbon-neutral electricity generation, natural sewage systems, and building wildlife sanctuaries.[2]

The bins also urged donors to contribute by claiming that Gaia would get "$2 worth for every $1 spent". Gaia Movement USA's director Eva Nielsen explained this by saying "It's more like a symbol. It's not concrete. It's like we are devoting a lot of money to the environment."[2]

Labor practices

The costs of maintaining the bins and paying drivers is partly offset in Gaia's case by hiring non-unionized workers, who as of 2004 were also not offered health insurance, according to the Chicago Tribune. Gaia and other related clothing operations also employ student volunteers who have joined Tvind schools to learn about humanitarian aid; they often work scouting for new clothing box locations.[3] Some of these volunteers arrive via the Institute for International Cooperation and Development (IICD). The IICD, a part of Tvind's "DRH Movement", exists ostensibly to train young people for humanitarian projects in developing countries. Former students interviewed by the Chicago Tribune, however, said they received little to no training, instead being sent out on fundraising missions. Several students said that they were enlisted to work for Gaia and the for-profit USAgain in their clothing-collection operation under the guise of raising money for their overseas projects. Some quit after discovering that the funds were going instead to Tvind and the IICD.[12]

Tvind has also attempted to enlist children in foster care and other youthful wards of the state to provide a workforce for Gaia and other clothing- collection charities. Tvind's application to operate a boarding school in Michigan for troubled youth to work collecting and sorting clothes for Gaia in Chicago was denied in 2003.[3]

Tvind embezzlement scandal

An FBI investigation into Tvind stated, “Tvind derives income from the creation of developmental aid organizations. Money is raised by the collection of used clothes. The clothes are recycled and sold in third world countries. The proceeds are sent to charitable trust funds established in off shore tax havens. [...] In each of these organizations the funds are ultimately controlled by captioned subjects who divert the money for personal use. Little to no money goes to the charities”.[13] Tvind was founded in Denmark circa 1970, and has since expanded its business activities to as many as 50 countries. According to Danish police estimates, TG controls global assets exceeding US$850 million.[14]

Tvind founder Mogens Amdi Petersen has been indicted in Belgium on charges of money laundering.[3] Petersen was eventually extradited from the U.S. to stand trial in Denmark for embezzlement and tax evasion. Petersen insisted that the allegations were false and a result of political persecution. A judge declared Petersen and six other Tvind members not guilty, upon which Petersen disappeared from the country along with four of his co-defendants. At the appeals trial, Tvind spokesperson Poul Jørgensen was convicted of fraud and sentenced to 30 months in prison.[7][15] In 2013, Petersen and four others were sentenced in absentia to a year in prison for their suspected role in embezzling millions of Danish kroner from the Tvind Humanitarian Fund during the 1990s. An international arrest warrant was issued for the five, who are believed to be in hiding abroad.[16]

In a 1998 report to Danish authorities, former Tvind leader Steen Thomsen alleged that the various charities linked to TG/Tvind artificially inflate the value of the used clothing they collect by buying and selling it among themselves at "symbolic prices" (known as transfer pricing) before selling the clothes to the public.[3] For their part, Gaia Movement USA maintains that they comply "100% with all US regulations" and do not engage in "any business activity with any non-bona fide group or company."[9]

Thomsen says that he left Tvind in 1998 because he was required to help embezzle money for the Teachers Group and Petersen. He alleges that Petersen's personal physician, Marianne Thomsen (no relation) would conduct checkups on members of the Teachers Group as a way of monitoring their activities for Petersen.[6] As of November 2015, "Marianne Thomsen" is listed as "clerk" for Gaia Movement USA's board of directors.[17]

References

  1. ↑ "Gaia-Movement Living Earth Green World Action USA". Charity Watch. Retrieved May 2015.
  2. 1 2 3 4 5 Pick, Grant (19 July 2001). "What's Really in the Box?". Chicago Reader.
  3. 1 2 3 4 5 6 7 8 9 Jackson, David; Eng, Monica (12 February 2004). "The Green Bins of Gaia". Chicago Tribune.
  4. ↑ "Mission Statement". The Gaia Movement USA. Retrieved November 2015.
  5. ↑ Henley, Paul (21 March 21 2002). "Denmark's Tvind". BBC News.
  6. 1 2 Smith, Matt (8 June 2011). "Your Rags to Their Riches: Donated Clothes May Fund International Fugitive". San Francisco Weekly.
  7. 1 2 3 4 Eng, Monica (5 May 2011). "Clothing operations linked to controversial Danish group continue to thrive". Chicago Tribune.
  8. 1 2 "Gaia-Movement Living Earth's 'Recycling' Program, Debunked!" (2 October 2015). Charity Watch.
  9. 1 2 3 "Our Public Statement". The Gaia Movement USA. Retrieved April 2015.
  10. ↑ "Overview of Financials for 2013". The Gaia Movement USA. Retrieved April 2015.
  11. ↑ BBB Wise Giving Alliance. "Charity Report - Gaia-Movement Living Earth Green World Action USA". give.org. Retrieved April 2015.
  12. ↑ Eng, Monica; Jackson, David (13 February 2004). "Humanitarian work turns into servitude". Chicago Tribune.
  13. ↑ DeLuca, Dave (6 November 2014). "Gaia Movement Bins Likely Funding Mysterious Villain". The Corvallis Advocate.
  14. ↑ The Chief Constable in Holstebro and The Public Prosecutor for Serious Economic Crime (Denmark) (1 November 2001). "Case Summary: The Public Prosecutor v. Mogens Amdi Pedersen et al" (PDF). Retrieved April 2015.
  15. ↑ "Humanitarian fraudster convicted". The Copenhagen Post (Denmark). 21 January 2009.
  16. ↑ "‘Cult school’ leader sentenced to prison" (30 August 2013). Copenhagen Post (Denmark).
  17. ↑ "About Us". The Gaia Movement USA. Retrieved November 2015.

External links

This article is issued from Wikipedia - version of the Sunday, November 29, 2015. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.