Thrift stores are a popular way for nonprofits to generate additional income for their mission while keeping expenses low. For example, just take a look at Goodwill. This nonprofit operates thousands of thrift stores nationwide to fulfill its mission of helping people build their skills to find life-changing employment.

However, starting a new business as a nonprofit can feel foreign. How do you ensure that you uphold your organization’s nonprofit values while building a profitable store? Here are some tips for balancing mission and sales in your nonprofit’s thrift store.

1. Assess your mission statement

Now that you have a thrift store, consider whether and how your thrift store’s mission differs from your organization’s mission statement.

For example, Friends of Disabled Adults and Children’s mission statement is to “glorify God by enhancing the quality of life for those who are mobility-impaired due to any physical disability, illness, or injury.” Their thrift store’s site reads, “100% of proceeds support our goal to increase mobility and self-sufficiency for people with disabilities.”

These statements are very similar, but there are a few key differences. Notice the thrift store’s mission does not mention religion. This is likely because a business needs to appeal to a wider audience, and some customers may feel uncomfortable in religious settings. The thrift store’s statement also focuses on supporting the organization’s efforts rather than directly focusing on beneficiaries. This indicates that proceeds may be used for necessary overhead costs that ensure resilience and growth for FODAC.

Part of having a successful nonprofit store is being upfront about how funds raised by your thrift store will be used. Clearly state in your store description what percent of profits will be used for what purposes.

Ultimately, your mission statement lets supporters know how your thrift store will strengthen your organization and promote your cause. Include this statement as part of your thrift store’s executive summary to help you appeal to your target market and drive the revenue you need.

2. Use your software wisely

Having the right point of sale (POS) solution is a great way to support your mission while running a successful thrift store. Your software keeps your business running smoothly by helping with:

  • Inventory management: It’s important to monitor your stock to understand your turnover rate. Software tools can instantly update your inventory to reflect new purchases and donations.
  • Easy discounting: Providing great discounts drives more customers to your store. Use a POS system to mark down all items with a certain colored tag or to offer group discounts.
  • Donation tracking: You’re more likely to receive donations if donors know they can receive a quick e-receipt. Your software can streamline the donation process for you and your donors.
  • Enabling online purchases: Maximize your revenue by creating an online shop so customers can order from anywhere. 

ThriftCart’s list of the top POS systems for thrift stores can help you decide which system best fits your needs. A robust POS solution will allow you to spend less time worrying about the details of running a thrift store and more time focusing on advancing your nonprofit’s goals.

3. Develop your nonprofit management skills

Management skills are crucial for any nonprofit organization’s success, but they become especially vital when your nonprofit starts running an additional business. Here are some management skills you should focus on to improve your service delivery:

  • Marketing: Improving your written communications can help you reach a broader audience. Creating a marketing plan and ensuring your marketing materials appeal to your target market inspires supporters who are new to shopping secondhand or seasoned thrift shoppers to patronize your thrift store. Remember that not every shopper will have a deeper interest in supporting your cause, but it’s still important to appeal to these customers to capture additional revenue.
  • Relationship-building: Creating connections with local businesses helps your store acquire donations of dead stock — that is, brand-new items that a store is struggling to sell. These donations are valuable because they tend to be in better condition than most. You should also ensure that these vendors align with your mission to keep your nonprofit’s reputation high.
  • Strategic planning: Decide on success metrics that will help you determine how your thrift store is performing and how effectively it supports your organization. This might involve tracking average purchase value, the number of customers per day, or total sales over a period to ensure your thrift store is as efficient as possible.

Seeking out educational resources for these skills will help your organization’s operations run seamlessly and ensure your thrift store benefits your cause.

4. Strategically price items

When determining your thrift store pricing strategy, consider your target market. While some customers will come to your store wanting to support your organization or looking for unique or vintage items, many individuals shop secondhand because they expect good deals.

Although you may obtain stock for free through donations, there is still a cost for each item, as you need staff to organize them and space to store them. Your prices should be high enough that each item is worth the time and effort it took to sell. Other factors like brand desirability, seasonality, and item condition may also impact your prices.

Inappropriately inflating prices will affect supporters’ trust in your organization, so keep your prices accessible and fair. 

5. Connect with your customers

One of the best aspects of running a thrift store as a nonprofit is the opportunity it offers to engage with supporters and create new connections.

Turn supporters into customers by creating engaging marketing materials that highlight the excitement of discovering treasures through secondhand shopping and the environmental benefits of thrifting. DNL OmniMedia’s guide to marketing for nonprofit organizations recommends using multiple communication channels, such as email, social media, and direct mail, to effectively reach your supporters. If your store is brick-and-mortar only, you can also segment your audience to only target individuals local to your thrift store.

To turn customers into dedicated supporters of your mission, provide educational materials about your nonprofit. Include pamphlets detailing your mission with their purchase receipt, decorate your store with pictures and statistics illustrating your organization’s impact, and ensure your staff members are prepared to answer questions about your nonprofit and how the thrift store contributes to its work. Additionally, be sure to thank customers for supporting your mission!

Starting a thrift store as a nonprofit can be daunting, but when done right, it is a powerful fundraising tool that drives sustainable, long-term revenue. Keep your mission as a guiding star as you learn to run and market a thrift store, and you’ll see how this operation allows you to finance your organization’s goals and connect with your community.

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