Baker: Not all donation bins are authentic in Santa Clara County

Dropping off clothes and other items at a nearby donation bin feels like a convenient way to make a difference.

But you may not realize that deceptive donation bins have become a big problem in Santa Clara County — just as they have in many communities across the United States. Sadly, it’s not a new problem. The Mercury News published a story in 2016 noting that hundreds of unpermitted donation bins were littering city streets.

It’s only become worse since then.

At Goodwill of Silicon Valley, we have monitored the explosive growth of rogue donation bins. We believe there are at least 300 such receptacles in San Jose alone, placed by a small number of outfits. Most are placed illegally in parking lots, street corners and near schools, usually without the knowledge and consent of the property owner, attracting graffiti, debris and dumping. Signs often create the false impression of a charitable affiliation or environmental commitment.

In reality, these bins serve a lucrative, profit-driven business that, collectively, can generate millions of dollars in revenue annually. Most are operated by commercial enterprises that sell the items in bulk or to for-profit thrift stores. Many items end up in foreign markets, if not foreign landfills.

By misleading well-meaning donors into believing they are supporting a charity, the companies drain limited resources from established nonprofits like ours and others, such as the Salvation Army, that depend on donations to fund essential community services.

We believe that, given a clear choice, donors will be selective when they know their donation stays local and benefits the community. Proceeds from the sale of donated goods at our stores help pay for a variety of Goodwill workforce training programs that reduce recidivism, support economic independence and ultimately save taxpayer dollars by reducing reliance on public systems. These programs help veterans, justice-impacted individuals, people with disabilities, unhoused neighbors and displaced workers gain the skills to launch stable careers in high-demand industries.

It’s frustrating that the problem — and most people agree that it is a problem — has persisted without any workable solutions. This is a tough issue for any city to tackle alone.

In 2013, San Jose decided to allow 18 bins citywide and required permits of $509 each at the time. The city has only issued two permits for donation bins since then — but that hasn’t stopped the proliferation of the metal boxes.

Understandably, the city’s Code Enforcement Division does not have the resources to police and collect these rogue bins. Goodwill now is working alongside San Jose on solutions and hopes to do the same with other municipalities in Santa Clara and San Benito counties.

Elsewhere, some states are taking new approaches.

Hawaii lawmakers are advancing legislation that would require for-profit donation bin operators to disclose that collected items will be resold for profit, a direct response to companies such as international thrift-store chain Savers. The publicly traded retailer reported $1.68 billion in net sales in fiscal year 2025 while paying approximately $144 million, roughly 8.6% of revenue, to the nonprofit partners that supply its inventory.

Let me be clear: Goodwill of Silicon Valley is not afraid of competition. What concerns us is deception. People should know where their donated goods are going, and who will benefit from them.

We want residents to understand this is a very real and growing issue for nonprofits such as Goodwill of Silicon Valley, which depend on the goodness of our community to donate unneeded items at our 23 locations throughout Santa Clara and San Benito counties.

At its best, donating is about neighbors helping neighbors. When you give to a local organization that is transparent about its practices, your generosity stays here at home. Every dollar is reinvested directly into programs that strengthen the health, resilience and future of this entire region.

Christopher Baker is the CEO of Goodwill of Silicon Valley.