Starting a thrift store for your nonprofit organization is an excellent way to provide your local community with low-cost goods and essentials. It’s also an exciting opportunity to fund your mission sustainably. But opening those doors doesn’t come cheap. You could need anywhere from $20,000 to $150,000 just to get started — and that’s before you even think about keeping the lights on and the racks stocked!
Even if you’ve got a rock-solid business plan and a mission that inspires, securing the funding for a thrift store can feel overwhelming without a clear roadmap. That’s why we’ve created the following guide — to help you know the what, why, and how of thrift store funding so you can make a lasting impact in your community.
The What: What Is Thrift Store Funding?
Think of funding for thrift stores as the fuel that keeps a mission-driven shop running.
How do you open a store that turns secondhand items into community impact? It starts with securing the money to launch and operate. For nonprofits, thrift store businesses are lifelines, generating funds for programs like job training, outreach, and charitable services.
So, what does thrift store funding actually pay for? Let’s break it down.
1. Startup Costs
When you’re opening a new store, there are several essential expenses you’ll need to plan for to get things off the ground. These are the upfront costs that will set the foundation for your business.
Planning for these expenses ensures you will have a physical space, the necessary inventory to begin operations, and the legal requirements to operate legally. A few examples of expenses to plan for:
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Rent deposits
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Renovations
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Initial inventory
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Licenses or permits
2. Staffing and Payroll
Hiring and paying employees is a significant part of your store’s ongoing expenses. This includes not only wages but also costs related to hiring, training, and supporting your staff throughout their employment.
Effective training ensures your employees are well-prepared to serve customers and perform their roles, which is essential for running a smooth operation. Here’s what to keep in mind when planning for staffing expenses:
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Salaries for managers, cashiers, and support staff
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New hire onboarding
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Ongoing education
3. Utilities
Utilities are essential services needed to keep your store running every day. These are ongoing expenses that can vary depending on the size of your space and the services you require. Properly managing your utilities can help reduce costs and ensure you’re not caught off guard by unexpected fees, such as:
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Electricity
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Water
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Internet
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Other operational costs
4. Marketing
To attract customers and grow your thrift store business, effective marketing is necessary. This category includes all the efforts you’ll make to get the word out about your store and engage your target audience. Whether it’s through social media, flyers, or local community events, marketing helps build awareness and draw people into your store. Efforts to promote your store and its mission may include:
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Social media campaigns
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Flyers
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Community outreach
5. Technology and Tools
Your store’s technology tools play a crucial role in managing daily operations efficiently. From inventory tracking to customer transactions, the right systems will help you streamline your work and stay organized. Investing in reliable technology ensures that you can handle everything from payment processing to order fulfillment with ease. Some of tools most commonly used include:
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Point of sale (POS) tools for donation collection
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Inventory tracking
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Customer payment processing
Keeping track of your store’s startup costs, staffing, utilities, marketing, and technology is key to getting off on the right foot. When you have a clear understanding of these expenses and plan ahead, you'll be better equipped to handle anything that comes your way and set your business up for success from day one.
The Why: Why You Need Funding for Your Nonprofit Thrift Shop
A thrift store is a retailer with a purpose, but unlike standard for-profit businesses, it needs funding to keep things moving — and achieve its greater goals. While traditional businesses rely on revenue to satisfy owners or investors, nonprofit thrift stores, like state-run Goodwill stores, depend on funding to get started and bridge the gap until the thrift store can operate independently.
Grants, donations, and sponsorships provide the resources needed to cover startup costs, operate day-to-day, and support the store’s purpose. These funds also fuel the bigger picture: turning retail profits into programs, outreach, and services that make a lasting impact. Every dollar invested drives the mission forward.
Now that you understand why funding is critical, learn the different ways you can secure it for your thrift store.
The How: Steps To Get Funding for Your Thrift Shop
There are multiple ways to obtain funding for a thrift store and support your nonprofit's bigger goal. Here are some options to consider, and tips for securing them:
1. Grants
Grants are a well-known way to fund nonprofit ventures, including thrift stores. They can come from public or private entities, each offering opportunities to support your mission. Here’s how they work:
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Public grants: These government-funded programs come from federal, state, or local agencies. For example, the federal Rural Business Development Grants (RBDG) program supports small business owners in rural areas. Many states and counties also offer their own grants, each with specific eligibility rules.
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Private grants: While public grants often come from government agencies, private grants are another excellent option for funding your thrift store. Foundations and trusts, like the Ross Stores Foundation’s Regional Giving Program, also provide funding for nonprofits. Some grants focus on startup costs or staff training, while others support ongoing projects over a set time period.
To find the right grants for your thrift store, explore resources like Grants.gov, the Foundation Directory Online, and local government websites. From there, follow each grant’s instructions carefully, including application steps, deadlines, and required documents to apply.
2. Crowdfunding Campaign
Crowdfunding can help launch your thrift store while creating buzz and building community support. Follow these steps to run a successful campaign:
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Choose a platform: Use sites like GoFundMe, Kickstarter, or Fundly to connect with your audience and explain your mission — post links on your social media to help them find where to donate.
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Set a clear goal: Break your funding goal into smaller milestones — like covering rent or purchasing shelving — and share progress with your audience. Real-time updates keep donors engaged and confident their contributions are making a tangible difference.
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Use engaging content: Keep supporters invested with updates such as videos showcasing your progress, testimonials from donors, or behind-the-scenes photos of your efforts. Highlighting social proof, like positive comments or endorsements, can encourage others to contribute.
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Offer backer rewards: Show gratitude with rewards that comply with charitable guidelines, such as branded tote bags, exclusive discounts, or personalized thank you notes.
Design a well-executed campaign that builds excitement, draws attention to your mission, and creates a network of supporters invested in your thrift store’s success.
3. Corporate Sponsorship Programs
Corporate sponsorships offer funding for your thrift shop while building partnerships with businesses that share your values. Here’s how to secure one:
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Identify a potential partner: Seek local businesses, retail chains, or corporations whose values align with your mission. Companies with community-focused goals are ideal candidates.
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Develop a proposal: Write a clear business plan showing how the partnership benefits the community, outlines marketing opportunities, and highlights mutual advantages.
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Show your store’s impact: Show how your thrift store addresses specific needs, like providing affordable clothing or supporting local programs.
Corporate sponsors have the resources to help you open a thrift store — but they can do much more than that! The right partner can boost your visibility, support marketing efforts, and drive their audience to engage with your mission.
Get the Funding You Need and Support Your Shop With ThriftCart
Securing funding for your thrift store is just the beginning of launching a successful operation. Once you open your doors, the real work begins — building a loyal customer base, nurturing relationships with donors, and managing daily operations to support your mission.
ThriftCart can help make that work easier. Designed for thrift stores, ThriftCart’s POS and e-commerce solution simplifies inventory tracking, donation management, and sales reporting, freeing up more time to focus on your nonprofit’s goals.
Book a demo today and see how ThriftCart can support your thrift shop’s success!
