Fundraising Alternatives Part 4: Charity Shops

The fourth in a series of articles looking at different ways to fundraise, focussing on Charity Shops as a fundraising model.

This month Deirdre Murphy, Fundraising Advice Officer at NICVA chats to Steve Biddle, Interim CEO of the Charity Retail Association and looks at the Charity Shop model as an opportunity to raise funds.

Background

In 1947 Oxfam launched an appeal for donations from the public to alleviate people’s suffering in post-war Greece.  They were so overwhelmed by donations of second hand clothes and blankets they decided to set up a shop in Oxford to sell spare goods and feed the profits back into their Greek relief campaign.  

This charity shop built on the work of other early pioneers, for example the Salvation Army who ran second hand shops since the 19th century to provide the urban poor with affordable clothing, and the British Red Cross who had previously set up shops to raise funds for the war effort and relieve hardship.

Today, charity shops are an integral part of the high street landscape, and of the voluntary sector, in Great Britain and Northern Ireland.  

Income in the UK

They annually raise around £290m for a wide variety of charitable causes – from pioneering scientific research, caring for abandoned animals and providing services to some of the most vulnerable people in society – to name just a few. 

Just as importantly, charity shops provide great benefits to their pool of 218,000 volunteers in the UK.  As research by Demos has revealed; 61% of volunteers believe that volunteering has a positive impact on their physical and mental health and over 80% think it improves their self-esteem and confidence.  At a time when competition for jobs is fierce the skills learned whilst volunteering can be invaluable for those looking for full time retail work.  No wonder Community Service Volunteers have estimated that for every £1 spent of volunteers, £3.38 of value was created including through improved health outcomes.

And locally

So, it is clear that Northern Ireland’s 300 charity shops are a great vehicle for NICVA members to achieve their goals.  They raise funds for vital charity work, equip their volunteers with new skills, reduce waste and bring footfall to high streets.  

Despite this potential, there is no doubt that developing a new store – whether it be the first or the fiftieth in a chain – can be a daunting experience.  Fortunately, unlike those early pioneers, no one going through this process today has to do it alone.

Our organisation, the Charity Retail Association, is the only body that represents the interests of charity retailers.  Our members range from single hospice outlets to national chains and represent about 80% of all charity shops in the UK, including many in Northern Ireland.  

We facilitate training, networking, lobbying, marketing and policy guidance for our members.  We organise events around the UK, including a Northern Ireland conference, and local volunteers – like Sandra Turner who has served the Oxfam shop in Portadown for 45 years – having been recognised at our annual awards.

If you are keen to begin or expand your charity retail operation in Northern Ireland, then we can also provide this support network for you.  And, for a limited period of time, we are offering half price deals for new members.  To learn more about these offers and benefits please call us on 020 7697 4080 or visit our website.

Whatever your organisation, we want to help you contribute to raising funds for a great cause, and building a stronger community in Northern Ireland.

Steve Biddle, Interim CEO of the Charity Retail Association 

Setting up a Shop

  1. Register as a charity with the Charity Commission, if you have not already done so. Only registered charities can set up charity shops.
  2. Familiarise yourself with the tax side of running a charity shop. Charity shops benefit from being exempted from corporation tax, zero rated VAT on the sale of donated goods, and 80% mandatory non-domestic business rates relief.
  3. Approach your local council, to arrange rates relief. 
  4. Create a budget for the shop: 60-80% of a shop’s income will go to running costs, such as rent and wages.
  5. Raise your start-up capital. You will need at least £5,000 to pay the rental deposit, as well as for the shop-fit, essential building repairs and staff recruitment.

For more information visit the Charity Retail Association website or the KnowHow NonProfit website.

For more Fundraising Advice

Follow Deirdre on twitter, like my facebook page or get in touch by email; [email protected]

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