P4P has international operations and domestic U.S. operations.
International Operations
Internationally, our business model is to make our overseas partners self-sustaining in the long run using what we call a revolving fund: our partners pay for international shipping and make enough money from the contents of the shipment to pay for the next shipment and run their business. Most of our partners have a bike shop that acts as a profit center as well as providing jobs in the community. P4P works with the partner to fund the first shipment; sometimes the partner can raise the money and sometimes P4P can use money from our generous individual donors and corporate sponsors.
Domestic U.S. Operations
P4P is responsible for the domestic U.S. expenses: staff; rent for our office and storage space in Glen Gardner, New Jersey; truck rental during spring and fall collection seasons; insurance, etc.
We have many generous donors – individuals and corporations. We also ask for a $20 donation, minimum $10, with each bike or sewing machine we collect. It strikes some people as inappropriate to ask for money as well as a bicycle. We explain that, when all expenses are counted, it costs about $52 to ship a bike. The monetary donation is a crucial part of our income. We also explain that both the value of the bike and the dollar amount of the donation are tax-deductible, in accordance with our 501(c)(3) non-profit status. Most donors are happy to make a cash donation when we explain its role in our business.
Our website has our financial reports for the past several years.