Charity Shop - Thrift Stores

Thrift Stores

Thrift stores are generally owned by a charity but run as an independent business under contract: they are licensed by the charity, which provides the merchandise for sale, and benefits by the sale of these goods directly to the contractor who operates the shop. The shop may then make a profit from this arrangement. In some cases, e.g. 'Savers' and 'Value Village' they pay a small percentage of the profit to the charity. Charities in the US are supported by tax legislation (see 501(c)(3)) but this does not extend to the 'for profit' thrift shop. Unlike directly charity-run shops run by volunteers, thrift shops pay taxes, and must under their contract have employees with proper contracts of employment.

In many countries around the world, not just exclusively in the Third World, second-hand clothing that is initially donated, are resold and is considered a commodity throughout the world. Some countries forbid it as it harms the local textile industry, as it is in the case in the Philippines. In other cases countries increase tariffs to reduce imports. Some countries ban the sale of second-hand clothing because unwashed used clothing is seen as a potential threat of spreading disease. The author of an article, Karen Transberg Hansen, suggested that in Zambia, however, salaula, or the selling of second-hand clothing actually helps the local economy in generating income. Hansen said the trade provided more jobs (handling, cleaning, repairing, and restyling). It has also provided governments with revenue from tariffs.