Giving To Thrift Stores

Several times a year, people decide to do a major cleanup of their home. They take inventory of what is in their
home, clean it up and often times, throw things out. The things that are tossed are sometimes still in good
condition and the owners decide to donate them to charities. Once of the easiest ways people think to do so is to
take them to local thrift stores. What some people may not be aware of is there are two different types of thrift
stores, for profit and not for profit. The differences in these two models have an effect how much actually goes to
charity.

Not For Profit

Not
for profit thrift stores to make a profit. These stores are directly linked to a charity so that the charity will
continue to have a source of funds to continue their good will. The overhead of these stores are very low because
the staff is a staff of volunteers. The biggest benefit of keeping the overhead low is so more money is given back
to the charity.

These thrift stores are directly partnered with the charities and they often follow the same beliefs that are held
by the charities. Because these stores are directly connected to the charities, the donors are able to claim that
donation on their taxes.

Many people feel good about donating to not for profit thrift stores directly because they know there is no profit
to be made. Charities and not for profit thrift stores have been applauded for the transparency in what happens to
the funds or proceeds from donations.

For Profit Thrift Stores

Not only are there thrift stores that partner directly with charities, there are some that actually assist
charities without the partnership. These stores contract with the charities to help manage the process of
collecting donations and everything that entails. Because these companies are not run by the charity directly, they
are not under the same tax free umbrella as their sister stores. They pay the same taxes that any other for profit
business is obligated to pay.

Theses thrift stores also fill their stores with donations but it is done in a different way than
not for profit stores. These stores will partner with different charities, run different solicitations and
collection efforts on their behalf. Once the collections are complete, these stores will purchase the lot of items
for a flat, bulk rate. Once these items are sold at the thrift store, the charities have to pay for the fees
incurred during the solicitation and collection process. After they have paid their fees, it is not surprising that
some charities walk away with a check that is worth 1/4 of the amount those donations were sold for. With this
process constantly happening, the stores stay stocked with merchandise.

For profit thrift stores have received a mixed bag of comments. Some oppose any company using
donations to gain a profit. It is not always apparent to those donors not all their contributions will benefit the
charity they opted to give things to. There are some that fell that for profit thrift stores are better than the
not for profits. These stores are often better equipped with sales people because they can hire more people. They
are also bigger most of the time because they can afford to pay the higher rent.

No matter the type, thrift stores fill a huge need in the community. There are some that shop at thrift stores
because they need to conserve as much money as they can. Others choose to shop there because of the great bargains
to be found. Large or small, there are monies that are passed from the stores to various charities, allowing them
to continue to do their good works all over.