COMMUNITY THRIFT STORE Q & A
In the fall of 2011, seven local volunteers got together to develop a plan for a Community Thrift Store. After six months of discussions with many people, the committee hasdeveloped a comprehensive proposal which brings together the necessary partners to make a Community Thrift Store areality in LakeCounty.
The Community Thrift Store Steering Committee considered the possibility of inviting a nationally-known thrift store, such as a Goodwill or Salvation Army to town, but have chosen to go with a local approach to creating a thrift store. This allows local control of the retail outlet, as well as the guarantee that the proceeds will stay in LakeCounty.
What is a Community Thrift Store?
This Community Thrift Store will be organized by a non-profit organization which will use the net proceeds to benefit those in need in LakeCounty.
What is the difference between a consignment store and a thrift store?
A thrift store sells used goods donated by members of the community and is mainly staffed by volunteers. Because the items for sale are obtained for free, and business costs are low, the items can be sold at competitive prices. After costs are paid, remaining income from the sales is used in accord with the organization's stated charitable purpose.
A consignment shopsells used goods for owners (consignors), typically at a lower cost than new. In Consignment shops, it is usually understood that the consignee (the seller) pays the consignor (the person who owns the item) a portion of the proceeds from the sale. Payment is not made until and unless the item sells. A specified time is commonly arranged after which, if the item does not sell, the owner can reclaim it (or, if not reclaimed within a period, the seller can dispose of the item at his or her discretion).
Who will own the building?
The Madison Community Foundation is a local non-profit entity founded in 1998 whose primary purpose is to provide Community Center membership assistance for low income individuals and families in our community.This Foundation is governed by a board of volunteer directors.
How will the Community Thrift Store be paid for?
Because this is an urban renewal project, the City of Madison is being asked to support this project by purchasing two buildings on Egan Avenue and funding the demolition costs for these buildings and the “Jensen” building.
TheLake County Commission is being asked to support this project because they are the governmental entity responsible for indigent care and the welfare needs of the citizens of LakeCounty. In return, the Thrift Store’s net revenues will be used to help support many of the same programs and requests.
The LAIC is being asked to support this project because it owns one of the proposed properties andalso because of concerns expressed to that organization over the last several years about the need for downtown improvement and retail expansion.This project meets both of those concerns.
Additionally, it will take contributions, large and small, from private citizens and businesses in the area to make this project a reality. If necessary, bank loans may be utilized to complete the funding, up to an amount where the steering committee, the Foundation board and ICAP all believe that the long term success of the store is assured. All contributions will be contingent upon the fundraising goal being reached. No federal funds or low interest economic development loanswill be used.Without the financial and volunteer help of individuals and businesses this project cannot succeed.
Who will operate the store?
Inter-Lakes Community Action Partnership (ICAP), under a long-term management contract which mandates that net proceeds be used for charitable projects in LakeCounty.
What experience does ICAP have in operating a thrift store?
ICAP has operated thrift stores for several years in Clark, ClearLake, Flandreau and Howard.
Who will benefit from the proceeds of the store?
Once store expenses including debt service, utilities, insurance, maintenance reserve fund and staff salaries are covered, net proceeds of the store will support programs operated by ICAP in LakeCounty. These may include rent and utility assistance, as well as other local unmet needs which may include minor medical expenses such as medication, gas for out-of-town medical appointments, eyeglasses, dental expenses and car seats for children. A Community Thrift Store Advisory Board will be formed to make these determinations on a case-by-case basis.
What is the best example of a Community Thrift Store that is operating in a town like Madison?
Committee members have visited a number of communities with a Community Thrift Store. The community most comparable to Madison is Milbank, which has a Community Thrift Store that is owned and operated by the community. The net proceeds of that store are used by ICAP for local charitable projects. The Milbank store has a big challenge operating out of three buildings, with a combined total of 9,000 square feet. They stated that if they had a larger space under one roof they could be more efficient.
Why not use an existing building on Egan Avenue?
The Community Thrift Store Steering Committee looked at other properties on Egan Avenue and in Madison, but, due to size and accessibility issues, found no existing building appropriate for this use.
Why this location?
The Community Thrift Store Steering Committee researched area properties and found it was available. It was a priority to the committee for the thrift store to be located on Main Street to help revitalize downtown and provide a one of a kind retail option for downtown Madison.
Why such a big building?
A thrift store requires adequate space for the wide variety of goods available for sale, as well as a separate space to accept, sort, price and store donated goods. Additionally, the building will house ICAP’s Community Service Worker and additional office spaces. These extra offices may allow other non-profit entities to be in this central location. The committee had had discussions with other local non-profits and there are potential partnership opportunities, including a combined storage and distribution center for the Lake County Food Pantry, which is currently in two locations. Since these potential non-profit partners offer services of a confidential nature, there would be a separate, more private entrance to the office area of the building, away from the storefront.
Why won’t the Thrift Store be in the new ICAP building?
ICAP will be constructing two buildings on their property west of Egan Avenue. The Head Start building will take up 1/3 of the block, while the second building will incorporate all ICAP offices (currently in several locations in Madison) in the remaining space. There is no extra space/land for a Thrift Store.
Will the store be hiring employees?
Yes. Once the store opening gets closer, ICAP will be hiring a limited number of paid staff. As the store grows, additional employees may be added.
Will the store need volunteers?
Absolutely! In addition to paid staff, the store will need numerous volunteers to operate efficientlyincreasing profits that will be used for local charitable projects. A variety of volunteer opportunities will be available and will include all aspects of accepting, sorting and pricing items, as well as working in the store.
Where will donations be accepted?
There will be a drive-thru away from the front of the building and a dock area in back for easy loading and unloading.
Will you come pick up the items I want to donate?
We plan to set aside one day per month (or more if necessary) to pick up large items from donors, limited to LakeCounty. We hope to utilize volunteers for this service.
What kind of items will you accept as donations?
The store will carry clothing and shoes, household and decorative items, books, sporting goods and furniture in usable condition, and may carry other items, depending on donations.
Are there things you will not accept?
The Thrift Store will not accept large appliances, mattresses, furniture past its usefulness, pianos, carseats and cribs (due to recalls) and some electronics.
When can we start donating items?
At this time, we are not able to take in items, but once we have a completion date, we will be able to accept donations as we will need to build an inventory before the opening date of the store.
Are donations tax deductible?
Yes, receipts will be available upon request.
Is there a way for low-income individuals to get free items?
Yes, local churches and social service agencies will be able to issue vouchers to those in need.
Will the Salvation Army have vouchers?
Yes, the local Salvation Army, which has money to purchase vouchers to give to people, may also issue vouchers to people with certain circumstances, such as a natural disaster or fire. The Salvation Army Disaster Assistance Guidelines mandate the usage of a thrift store when available.
Will the store generate sales tax revenue?
Yes, the store will generate sales tax at the same percentage as any other retail store in town.
Are there other benefits of a thrift store?
We know that a large amount of usable items get thrown away every day. These items can be reused and recycled, thus being more earth-friendly.
The plan the committee has developed creates an exciting opportunity for a number of positive things in LakeCounty. These include:
- The demolition of buildings past their usefulness
- Downtown progress
- Create a one of a kind retail storedowntown
- Provide significant dollars from net profits to be used for local charitable needs
- Increase volunteerism
- Generate sales tax revenue
- Provide employment opportunities
- Help recycling efforts
- Provide inexpensive (or sometimes free) products that people need every day
The Community Thrift Store would:
Be created by the Community,
Be owned by the Community,
For thebenefit ofthe Community.