What is charitable retail?
- Jun 11, 2024
As of 2022, there are more than 2.8 million retail businesses in the United States. This only accounts for those based in the US. If you consider the rest of the world, that number increases dramatically. The goal in retail is simple: earn enough money to cover all your overhead expenses, such as paying your employees and keeping your shelves stocked, with enough left over to experience a net gain.
There are more than 1.54 million charitable organizations based in the US. These organizations share many of the same goals as retail, bringing in enough money to keep the organization running. Where their goals diverge, however, is profit. Charities are often fittingly referred to as “non-profits” because they don’t turn a profit. Any surplus funds left over after paying overhead expenses go towards a public cause, mainly what the entire organization is founded around.
What if these two ideas could be combined? The concept has gone by a few names, such as charitable retail and social business, and it combines the effectiveness of retail with the altruism of charity. The idea isn’t new. Oxfam, a British confederation of 21 independent charities, began operating in England in the 1940s, selling goods with the idea of both turning a profit and alleviating global poverty.
Just over a decade ago, Maryland passed legislation recognizing benefit corporations: businesses that pursue both for-profit and non-profit objectives. These companies are different from those who simply donate to charity, many of which do. With charitable retail, the public benefit is directly tied to the mission of the company. While maximizing profits is still a major goal, fulfilling the charitable obligation is just as important.
What this means, essentially, is that decisions can be made that will hurt the bottom line if it means furthering the charitable mission. It’s a balancing act because without turning a profit, the company couldn’t fulfill its goal of helping the public. With charitable retail, the dual goals of turning a profit and donating to a cause are intertwined.
Many see charitable retail as a win for everyone involved. Charitable organizations are often run by volunteers, who have to fit their charity work into a busy schedule that presumably already includes a paying job. With charitable retail, retailers are not only contributing to the public good but also providing jobs. Consumers get the satisfaction of knowing that every dollar they spend is pulling double duty: furthering a worthy cause while keeping people employed.
Chances are you’ve done business with several charitable retail operations. Everyone is familiar with outlets such as Goodwill, but companies like Warby Parker, Live Strong, Toms, and even Ben & Jerry’s all donate a significant amount of their profits towards charity.
This is our goal here at SPARTA Gift Shop. We want to give consumers what they are looking for, and further our mission of helping children with autism and their families from underserved communities access the critical services they need.