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You can't create a nonprofit to make money for yourself. And, incorporating a nonprofit doesn't mean tax exempt, that depends on a bunch of factors.
You can run s thrift store for your own benefit, it just can't be a nonprofit and donations don't qualify for a tax deduction.
If it was a non-profit I know I could not benefit from it personally but my accountant did say I could get paid a reasonable amount of compensation.If i did get it tax exempt it would benefit my church plant not me.
Last edited by NewMexicoCowboy; 08-06-2023 at 02:31 PM..
I would take donations. I know there are some for-profit places like Savers that do take donations.
Savers accept donation at their stores as the selling partner for a non profit charitable organization. So, if you wanted to mimic that model, you would first need to establish a selling agreement with a charitable organization that can accept charitable donation.
Donations at the store are not considered a donation to your store but a donation to that charitable organization. That charitable organization is the one issuing charitable tax receipts. You accept and sell those donated items in your store and keep a percentage (commission) of the take and send the remainder to the charitable organization. At most Saver's, they have only a single charity they work with for drop offs while some may have 2 charities and you pick which one gets the proceeds of that sale.
I tried getting into it and just ended up with a big collection of a specific popular stoneware...it's funny to me now. B/c of logistics I would not be making a profit on what I was selling. (shipping costs, etc.)
Plenty of people resell items from thrift stores, the people who run the stores know that and are OK with that.
If you live in a metro area with lots of stores to comb, it could be lucrative.
Savers accept donation at their stores as the selling partner for a non profit charitable organization. So, if you wanted to mimic that model, you would first need to establish a selling agreement with a charitable organization that can accept charitable donation.
Donations at the store are not considered a donation to your store but a donation to that charitable organization. That charitable organization is the one issuing charitable tax receipts. You accept and sell those donated items in your store and keep a percentage (commission) of the take and send the remainder to the charitable organization. At most Saver's, they have only a single charity they work with for drop offs while some may have 2 charities and you pick which one gets the proceeds of that sale.
Ya I plan on using that business model if I do it for-profit.Thanks for the advice.
Hi everyone,
I am someone who is interested in getting involved in thrifting and starting out selling online and maybe opening up a store someday.I heard it can be a good way to make money selling old unwanted stuff for a profit.Can a for-profit thrift store work out well?Would a niche thrift store be better than one that looked like a Goodwill?
My accountant said its a good business idea but I would eventually like to consult with more than one accountant and see if it sounds better as for-profit or non-profit.I am sure I could find some cause for it to raise money for if it was better as a non-profit.I also like how its popular with Millennial and Gen Z shoppers.
I always wanted to be a small business owner but I never quite knew what kind of business sounded good.Thanks in advance.I have heard that thrift stores been traditionally non-profit but I have heard thats starting to change hence the interest in mine being for-profit.I am in Texas.
Do you know how many thousand this business venture would realistically take to start?I have some money in investments I could use a portion for start-up costs like renting a spot in a old-strip center for a year.I heard it could cost me up to 20,000-30,000 based on stuff I have read online.
As long as the rent is low enough that dont continue to rise. But the places with low rent that are not going up are the ones with low population, and decreasing population. How many people there will want unwanted stuff?
Give your business name to realtors. Clients who are selling homes often face downsizing before moving. Offering a clear-out/haul away service would be one way to acquire inventory. BUT, you need to be willing to deal with the haul away in its entirety. After my father died we got the name of such a service from the realtor who listed his house for us. Family members had already removed sentimental heirlooms but there was still a house full of stuff left. No one else in the family was local and didn't have opportunity, time or connections to clear out a house.
How do you even intro yourself for this purpose? I am trying to think of what I would even say to a realtor once I call them up. They are likely expecting me to be a buyer or a seller, and are hoping that. Then they hear me, and I tell them, "oh know I pick up junk and resell, can you help me out".
Ya I plan on using that business model if I do it for-profit.Thanks for the advice.
If you follow their marketing plan, make sure you have a healthy reserve for legal fee, potential lawsuit settlements, government fines and taxes. Savers has suffered greatly since their questionable practices caught the eye of state attorney generals.
I would suggest that, rather than the overhead expense of trying to maintain a brick-and-morter type establishment, you try reselling on the various established platforms such as eBay, Mercari, Poshmark, etc.
Not to be the bearer of doom and gloom, but every independent type thrift store that I have seen try to make a go of it, at least in my area, has failed. The big thrifts like Goodwill and Salvation Army are able to take advantage of large tax advantages that help them to cover overhead, while maximizing profits on donated goods.
Check out YouTubers like Jason T. Smith snd Suzanne A. Wells who have been in the reselling business for a long time. I did it for a while myself, and it is a lot of work, but if you are organized, have a good eye for things that have resale value, and keep good records, you may do well.
How do you even intro yourself for this purpose? I am trying to think of what I would even say to a realtor once I call them up. They are likely expecting me to be a buyer or a seller, and are hoping that. Then they hear me, and I tell them, "oh know I pick up junk and resell, can you help me out".
You introduce yourself as a service of potential interest to sellers/buyers. All I know is that I got the name of the one we used from a realtor. She pulled his company business card out of her rolodex.
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