Thinking about starting a Non-Profit

[GuavaGirl]

I've been thinking about starting a non-profit for a while. I just wanted to put my idea out there and see what your thoughts are. I'd also love to hear from anyone that has started one themselves.

My idea is to have a non-profit thift store just for baby, child, and maternity items. Lower prices than goodwill, but above yard sale prices. Coupons/vouchers for local women's shelter, crisis center, & teen parent groups. (Possibly do consignment for larger items or just provide a large bulletin board for people to post their sale flyers for things like cribs and strollers) Also, I would like to donate a certain amount of the profits to local, national, and international organizations benefiting women and children. (Each customer would receive a number of tokens, depending on the amount they spent, and they choose which organizations get a portion of their purchase, by dropping the tokens in the appropriate canister)

Anyway, that's sort of my idea, for now.

I'd love to hear any thoughts! (comments, suggestions, questions, words of caution, ideas, experiences, etc.)

[bluebunny]

I had a non-profit idea a few years ago and did some research on starting a non-profit, including attending a grant-writing conference for non-profit grant writers. My state's secretary of state's website was very helpful in terms of providing the paperwork to start a non-profit. Plus, there are federal websites with similar info.

Like anyone wanting to start a business, you should come up with a solid business plan. You probably will need some sort of articles of incorporation, mission statement, vision, etc.

You will also want to research "competing" businesses in your area. I know that in my area, consignment stores and huge seasonal consignment sales are popular. There are many options for people donating clothing items for women and children. I don't know that my area could support another clothing store for second-hand merchandise.

Another thought is that I think it would be difficult to be both a non-profit and a consignment store. A pure non-profit would allow people to donate items that are then tax-deductible. A consignment store allows people to make a profit on their items. From what you describe, I think you would not want to do any consigning at your store in order to support your mission.

Have you heard of the Junior League? It is a national organization that trains women to be leaders in their community while promoting voluntarism. The local Junior League here has a store similar to what you describe--second-hand items (gently used, practically new) with the profits going to support women, children, and families. The store takes donations from the community, which are tax-deductible, and are then sorted to sell. Items that are not in good condition are passed on to Goodwill or other organizations.

Good luck in your endeavor!

[GuavaGirl]

Thanks a lot!

I really appreciate that info. Very helpful. ...and encouraging.

There are only 2 thrift stores in my town. (pop. 20,000)
They are goodwill and a tiny one ran by the homeless shelter, and not many even know about that one. There are none that focus on items for babies, children, & maternity. I could be wrong, but as long as people know about it, and it's in a good location, I feel like they'd rather take their items to a thrift shop knowing that women are going there to specifically find those types of items.

Thanks for the info. on the consignment issue. I wasn't really sure about that one.

So I take it that you decided not to start your non-profit? Do you mind sharing why? (if it's personal, don't worry about it.)

-Alisha

[lawschoolmama]

Originally Posted by bluebunny

I had a non-profit idea a few years ago and did some research on starting a non-profit, including attending a grant-writing conference for non-profit grant writers. My state's secretary of state's website was very helpful in terms of providing the paperwork to start a non-profit. Plus, there are federal websites with similar info.

Like anyone wanting to start a business, you should come up with a solid business plan. You probably will need some sort of articles of incorporation, mission statement, vision, etc.

You will also want to research "competing" businesses in your area. I know that in my area, consignment stores and huge seasonal consignment sales are popular. There are many options for people donating clothing items for women and children. I don't know that my area could support another clothing store for second-hand merchandise.

Another thought is that I think it would be difficult to be both a non-profit and a consignment store. A pure non-profit would allow people to donate items that are then tax-deductible. A consignment store allows people to make a profit on their items. From what you describe, I think you would not want to do any consigning at your store in order to support your mission.

Have you heard of the Junior League? It is a national organization that trains women to be leaders in their community while promoting voluntarism. The local Junior League here has a store similar to what you describe--second-hand items (gently used, practically new) with the profits going to support women, children, and families. The store takes donations from the community, which are tax-deductible, and are then sorted to sell. Items that are not in good condition are passed on to Goodwill or other organizations.

Good luck in your endeavor!

I'm a tax attorney, and I actually work on Forms 1023 for non-profits on a regular basis; these are the forms that a non-profit must submit in order to attain tax-exempt status from federal taxation. Just to let you know, the IRS probably would not be into the consignment idea for a non-profit, as the PP said--that MAY jeopardize your tax-exempt status, and at the very least would give you a bunch of headaches from the IRS as you try to navigate through approval of your 1023! If you decide to go for it, though, more power to you, and good luck!!!