How to Become a Non Profit Organization Thrift Store

Thrift stores can support nonprofit missions

Many nonprofit organizations use thrift stores to support their work. The Salvation Army, Goodwill Industries, Cause for Paws, and the Junior League are a few whose thrift stores are well-known nationally. In some cases, the nonprofit already exists and the thrift store is a project of the nonprofit. The key to starting a nonprofit thrift store is to organize it as a nonprofit organization. The thrift store must have a charitable purpose and cannot be operated for profit.

Things You'll Need

• Business plan
• Notebooks
• Files
• File box
• Paper and Posterboard

Instructions

Plan and Launch a Thrift Store

1. 

   Make a plan

   Determine your charitable purpose. What is your mission, the purpose of your nonprofit efforts? What need is your organization addressing? Perhaps the proceeds from the thrift store will benefit the homeless, or support healthy lifestyle initiatives. Visit a few thrift stores to see how they operate and how they publicize their mission.

2. 

   Call for information

   Contact the Secretary of State office for your state. This office is where you go to set up a nonprofit corporation. Your state Department of Revenue is the place to obtain tax-exempt status at the state level. You will need to create articles of incorporation and put together a board to govern the nonprofit.

3. 

   Get appropriate licenses

   Contact your city and county offices and the state Department of Commerce for information about business licenses. The requirements vary, but you will need to know what the laws are for operating a business. Apply for tax-exempt status with the Internal Revenue Service. Donors receive tax deductions for donations to a nonprofit. Thrift stores rely on donations they can sell.

4. 

   Have a board meeting

   Meet with your board and develop a business plan, including fundraising, staffing the store, finding donations, and plans for opening day. Raise funds to start your nonprofit thrift store. Have a fundraiser such as a flea market. Ask for donations from individuals and community foundations that are interested in your mission. Don't forget to come up with a memorable name for your thrift store.

5. 

   Locate the perfect facility

   Find a facility that can house a thrift store. Try to find a location near other thrift stores. Consider parking, affordability, and utilities. Make sure you have appropriate insurance for your thrift store. Ask about discounted rent or shared space -- businesses are often willing to help a nonprofit get started.

6. 

   Donated items are your inventory

   Ask for donations to your thrift store. Place notices in print media and ask supporters and board members to help find donors. Check with businesses that might have surplus items to donate. Check state surplus warehouses for equipment such as cash registers, shopping carts, and display cases or racks.

7. 

   Plan a great opening day

   Have a grand opening. Get the word out by sending out announcements to local newspapers and periodicals, and community segments of local news shows. Place flyers in area businesses and pay to list in the telephone directories. Let people know what your mission is -- what they are supporting with their donation or their purchase.

Tips & Warnings

• Look for ways to minimize expenses. Find volunteers with trucks who can help pick up donations. Try to find a location near other thrift stores. Find volunteers who can work at the store. Take a class or buy a book and learn about business management, or contact SCORE or the Small Business Administration in your city.

References

• Internal Revenue Service, Charities and Nonprofits
• SCORE, Counselors to America's Small Business
• Small Business Administration