Tips for Picking a Thrift Store and Other Guidance for Informed Giving

The Better Business Bureau (BBB) Wise Giving Alliance advises the public to give the same careful consideration for their donated clothing, furniture and other goods as they would for cash donations to charity. Thrift shops vary greatly in how their sales actually benefit charities.

Of the more than 25,000 resale and thrift stores in the country, The National Association of Resale and Thrift Shops reports that only about 30% of them are run by charities. The BBB Wise Giving Alliance advises you to do your homework before you donate because it isn’t always easy to tell the difference between a for-profit and a non-profit charity thrift store.

Most people probably think of donating clothing and other used items as a gift of convenience to help clean out the house, but contributors still need to take the time to find out more about who will benefit from their donations. While the name of a store may identify the charitable affiliation, charity-sounding names have been used by for-profit stores with little or no connection to charity.

The BBB Wise Giving Alliance offers the following tips for donating used clothing and other items to charities.

1. If you get a phone or mail solicitation offering a pick-up for used clothing and other items, don’t hesitate to ask what charity will benefit from your donation and how. For example, will the items be sold in a charity thrift shop, distributed to families in need, and/or re-sold to a third party to convert for other uses.
2. Don’t assume that all thrift stores are run to benefit a charitable cause. If in doubt, ask the store to identify the charity it’s affiliated with and then contact the charity to verify the arrangements.
3. For drop-off boxes that are often placed in shopping center parking lots, see if there is a phone number on the bin. Call for information. Expect straight answers. Be wary of unfamiliar names.
4. Remember that the tax rules have changed in the past year. In order to claim a charitable deduction, items must now be in “good used condition or better.”
5. Check with your local Better Business Bureau to see if it has information on file on the organization.

The BBB Wise Giving Alliance promotes a trusting relationship between informed donors and transparent charities by producing in-depth reports on national charities based on comprehensive standards of accountability. These reports are made available both online at www.give.org and in the Better Business Bureau Wise Giving Guide quarterly magazine.

© BBB Wise Giving Alliance