Who's Cash Are They Using.

[nicebloke1]

I notice some of these charity shops especialy Barnardo's are in fact dealing in brand new items that have been bought in direct from manufactores. If they are using the funds from goods that have be donated to buy these new goods, is this not in a way gambling with these funds in the hope of increasing there turnover/ profits, or are the goods supplied on a sale or return basis? If its the latter then the shop is being used for private enterprize to make money when really the shop is not there for that purpose. Any thoughts?

[nicebloke1]

Just looked at your link wolf thks, put most of this stuff you can by in more than enough shops we already have. I just think they are going to spoil the whole idea of a charity shop, the suprise element.

[nicebloke1]

PP, thks got the general idea of what you mean.

[Buenchico]

Charity shops get 80% off their business rates as long as "the property is wholly or mainly used for charitable purposes".  That doesn't prevent them selling some new goods:
https://www.charitytaxgroup.org.uk/tax/business-rates/property-wholly-or-mainly-used-for-charitable-purposes/

Charity shops don't get free rent (or certainly not automatically anyway).  As with any other business, they negotiate with landlords to determine the rents that they pay.  However some landlords are happy to accept very low rents, rather than nthing at all, just to get tenants into their shops for a short while.

[Peter Pedant]

thx nice to hear someone reads what I write

[nicebloke1]

Buen, Interesting link! Looking at this charity Barnardo's they do seem to rent some high end shops some even brand new buildings. Most charity shops go for the run down old buildings that have been empty for years sometimes. Hence they get them for a song.

[jno]

I must say I'm surprised, none of the charity shops near me seem to have new product in at all. None of them are big chains though.

[nicebloke1]

The barnardo's I went into today is a brand new shop / building. And there was very little second hand donations in there, 80% of what they had was brand new. Socks, handbags kitchen wear, irons, toaster, plastic flowers. Needless to say it was void of any bargin hunters.

[RandyMarsh]

The model changes, they are move savvy these days. The end result should still be more money in the charity shops tills.

[newmodarmy]

The op doesn't know what he's talking about here.

He doesn't know whether charity shops pay up front for new goods or just get a cut of any sales 

[Maydup]

As the High Street changes, so the charity chops adapt. 
 

Once you could pop into Debenhams or British Home Stores for gloves and hats. Now you pop into the British Heart Foundation. 

As long as the profits are for the charitable purposes, there's nothing to say that the goods sold in a charity shop have to be second hand. The trading often goes through a separate company which gifts its profits to the main charity. 
 

I'm a trustee for a charity and we have Charity Name Trust Ltd and Charity Name Trading so all profits from retail and refreshments are donated across from Trafing to Trust. But never the other way round do straight donations of money go direct to the charity and cannot be used to purchase stock for sale or equipment for the shop. 

[nicebloke1]

20.24 NMA.Yet again just another silly dig at the poster. Play the ball not the poster. ( The OP doesn't know) If you take the time to read the OP, thats what my question is all about.

Maydup.01.13. Thks for the great post. It's not that I am concerned that all profits don't go to charity, it was more to do with them buying in goods with the profits already made and risking the loss of that cash and being left with goods unsold. The other point I was trying to make is that if charity shops all start buying in these new goods they risk losing there true identity, that being the sale of secondhand goods.

If people start to realise that the goods now on sale in charity shops are just the same cheap new products they can by anywhere such as B&M I fear their footfall will take a big hit. Conclude. It will be pretty pointless walking into a charity shop because theres nothing in there worth a look?

[BoxAngle]

To illustrate. If I donate some items and they sell them for say £100. Then they use that £100 to by 100 £1 widgets which they then sell for £2 each. Now they have £200. Seems very enterprising to me.

[Spicerack]

Shops donate shop soiled/discontinued furniture lines to charity outlets.

 

[nicebloke1]

10.11. What if they get stuck with them and cant sell them? Money lost!

[BoxAngle]

One assumes, like any outlet, they'd buy things that do sell. In my example they break even once they've sold half of them. They are in no hurry anyway so buy something that people always need and they will sell eventually.

[nicebloke1]

But my point is they shouldnt be gambling with donations and suporting private wholesale businesses, the latter is not the idea of a charity shop, they are risking donations.

[BoxAngle]

It's not gambling, it's optimising income which is surely the point. Charity is now using business principles to optimise the money they have available for the benefit of the charity concerned. Surely that is a good thing.

[naomi24]

Charities raise money to support whatever cause they're founded to support.  Any successful business invests to accumulate and charities are run as businesses.

[nicebloke1]

Charity or business? They are losing their idenity. Start selling " new" rubbish items like the cheapy shops people will have no reason to go into them.

[BoxAngle]

Charity or business? Those are not mutually exclusive. Surely the idea is to make money for their cause. I see nothing wrong with making the best use of the money they have available.