Big blue bins popping up around Oregon -- 100 so far -- are labeled "Books for Charity." But most of the books do not land in the hands of nonprofits or literacy groups.

The bins are managed by a for-profit company,

which ships the books to its headquarters in Lakewood, Wash., for sorting. Thrift then sells 25 percent at online websites such as

pulps about 50 percent and then hands the remaining 25 percent to nonprofits.

Local groups such as

say the bins are deceptive and will unfairly siphon books from nonprofit efforts.

"It doesn't quite ring true, does it?" said Nan Bogdan, treasurer of the Tualatin library group, which began noticing a decline in book donations several weeks ago, about the time Thrift Recycling began placing bins in Oregon. "I'm dismayed. That's taking advantage of donations that should go entirely to libraries or schools."

Donating books

Library groups:

Nonprofit groups across the metro area accept books for used bookstores and sales to benefit libraries. Find information at

,

and

Children's books:

and

accept books in good condition for needy kids.

Used booksellers:

and

are among retailers that buy select used books. Find others at

Thrift stores:

Find directories at

and

Recyclers:

Find one near you at Metro's

; go to "Garbage and Recycling," then "Find a Recycler."

Charity resources

Is an organization a charity? The Oregon attorney general's office has an

. Nationally, check at

Tips for giving:

The attorney general's office

.

Ross Laybourn, the retired former head of the

, agrees the bins could be seen as deceptive because Thrift is acting as a fundraiser but doesn't make that clear.

"If you spend time looking at the bins, is it clear that it's being collected by a for-profit company?" Laybourn said. "It's like when a telemarketer calls for a contribution by telephone. They are supposed to make a disclosure that they are the professional fundraising firm calling on behalf of a charity."

Laybourn also thinks Thrift's close relationship to the nonprofit that manages its book distribution to charities,

, might raise concerns.

"I always get a little nervous where you have this intertwining of a pro-profit and a nonprofit beneficiary," he said. "Are these two organizations totally dependent on each other?"

Elizabeth Grant, current head of the charities division, said she couldn't comment on Thrift Recycling or Reading Tree.

Thrift Recycling was started seven years ago by Phil McMullin after he realized the volume of books being thrown into landfills, said company President Jeff McMullin, Phil's son. Now the company has about 200 employees in 10 locations nationwide and about $26 million a year in revenue, he said.

But McMullin said Thrift is not just about recycling books for profit. It's about giving back to the community and helping nonprofits, specifically children's book and literacy programs. That's why it's a registered fundraiser in all 50 states and donates books to a handful of nonprofits, particularly Reading Tree, which receives 80 percent to 90 percent of Thrift's donations.

McMullin and two others founded Reading Tree three years ago, and McMullin is its board president. Reading Tree manages book distribution to charities from Thrift's roughly 2,500 bins across the country.

The nonprofit does not receive foundation or public money and relies almost solely on Thrift for its operations, McMullin said. Nearly all the books donated by Reading Tree to charities, for instance, are supplied by Thrift, which also gives the nonprofit all proceeds from the books that are pulped.

"Reading Tree exists because TRM exists," McMullin said.

Reading Tree operates in 13 states and the District of Columbia and has one employee, Chicago-based Executive Director Gina Zambori. She previously worked as a Thrift manager in the Midwest for about 2 1/2 years.

The most recent tax filing available for Reading Tree, from 2009, listed roughly $6.9 million in net assets and $239,770 paid to Thrift as an independent contractor. The form also listed Kerry McMullin, Jeff's wife, as the person who "possesses the books and records of the organization."

Jeff McMullin said the $6.9 million represents the value of the books Reading Tree received that year but had not distributed. The $239,770 is the value of the books Thrift later sold online.

McMullin said his wife's involvement was nothing major. She doesn't work for either company but once helped Reading Tree "from an administrative point of view" when its previous executive director left.

Still, McMullin acknowledged that the for-profit and nonprofit companies have an unusually close relationship, so much so that it could appear to be a conflict of interest to outsiders.

"We have spent time with attorneys on both sides to make sure my involvement was done correctly," said McMullin, who said he plans to step down from Reading Tree's board soon. "And that Reading Tree received greater benefit from my participation than not. We've tried to explain it clearly and make sure we have been transparent about it."

Meanwhile, Zambori said Reading Tree plans to give books to two Oregon sources, the

and McKay Elementary School in Beaverton. Other local schools could be added later, she said.

This worries some of the nonprofits that raise money for libraries because competition for donations may increase, and they don't have the resources of a multimillion-dollar for-profit company behind them.

Most library groups are entirely volunteer-run, for example, and sell the vast majority of donated books, with proceeds going to libraries. A small percentage of unusable books are recycled.

"Our business model to raise money would have to change," said Craig Cedros, president of

. "We are a volunteer organization. I have a full-time job and a family."

Bogdan said the blurred relationship between Reading Tree and Thrift Recycling offers the public a stark choice regarding donations.

"If people are putting books in bins thinking they are going to a charity but in fact only a percentage does, they're being duped," Bogdan said. "If you have a love of libraries, then try to find a home for the books."