Running a nonprofit thrift store is a constant balancing act. How can you continue to fund your mission while paying staff paychecks and covering ever-rising operating costs?
While roundup donations and sales revenue help close the gap, grants offer the financial stability your thrift store needs to focus on what matters most — serving your community. But how can you find the best grants for your nonprofit?
This post breaks down five types of grants perfect for nonprofit thrift stores, plus practical tips to strengthen your applications.
Nonprofit thrift stores sit in an interesting niche. You’re not just a retailer, and you’re not just a charity. Sitting in the middle of these two roles opens doors to grant opportunities that traditional nonprofits can’t access. While other organizations might qualify for environmental or social impact funding, thrift stores often meet criteria for both.
Another advantage thrift stores have in the current climate is the movement toward supporting a circular economy. Funders increasingly back organizations tackling waste reduction, sustainability, and social justice, making funding thrift stores an attractive opportunity.
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Thrift stores deliver on multiple impact metrics by diverting items from landfills while providing affordable goods to underserved communities. You're solving environmental challenges while addressing economic inequality — a combination that opens many funding doors for businesses like yours.
In this guide, you'll discover:
Whether you're funding basic operations or expanding community programs, we’ll help you confidently navigate the often-confusing world of grants and funding.
We’ll provide a list of (and context for) your options in this post, but note that this list is not comprehensive. You may need to do further research using additional resources to find the grants and submission requirements that best fit your store.
The first type of grant you might pursue for your thrift store is a federal government grant. These grants direct funding from U.S. government agencies to support nonprofit initiatives aligning with national priorities. These grants offer substantial funding, but require detailed applications and strict compliance with federal regulations. They’re also some of the most competitive grants.
Start your search at grants.gov using strategic keywords like "nonprofit," "community development," "sustainability," and "economic opportunity.” Avoid limiting yourself to "thrift store" since federal grants tend to use broader categories.
Set up email alerts for new grant postings in categories like Community Development, Environmental Sustainability, and Economic Development to catch opportunities early. The system updates daily with new opportunities, so regular monitoring pays off.
These grants are specifically designed for nonprofits serving rural communities with populations under 50,000. If you try for this grant, your application must demonstrate how your store creates jobs, provides essential services, or supports economic development in rural areas.
Funding ranges from $10,000 to $500,000, depending on the specific program. Keep in mind that restrictions apply to the funds received from this grant. You can't use these funds for working capital or debt refinancing, but facility improvements, equipment purchases, and expansion projects typically qualify.
The EDA recognizes thrift stores as organizations that create jobs, reduce costs for low-income families, and attract foot traffic to struggling commercial districts. To show that your store qualifies for these grants, you need to show measurable economic impact through metrics like jobs created, volunteer hours contributed, and dollars saved by community members shopping secondhand.
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When you apply for a federal grant, you need to have all your ducks (and data) in a row. You’ll need to provide detailed reports on outcomes, metrics, and your store’s financial data. One of the easiest ways to set yourself up for success is by implementing a point of sale (POS) system that tracks the right data.
A robust POS system that tracks sales by department, volunteer hours, and community impact makes compliance manageable and makes it easier to strengthen your application with real numbers. Grant reviewers take notice when you can easily pull reports and show your store's contributions.
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Timeline planning is crucial for federal grants. Build your application timeline backward from the deadline, allowing at least three months for:
Expect six to 12 months from application to funding decision, with another two to three months before funds arrive. Plan your cash flow accordingly and don't count on this money for immediate needs.
Next, you might apply for state or local government grants. These grants offer funding from state agencies, counties, and municipalities to support community-based initiatives. Unlike federal grants, these programs typically have simpler applications, faster turnaround times, and focus on addressing specific regional needs.
Finding state-specific opportunities starts with your state's economic development department website. Most states maintain dedicated grant portals or nonprofit resource centers that list current funding opportunities. Look for programs focused on job creation, workforce development, or small business support.
Application requirements will vary depending on your state, but some standard requirements include demonstrating local economic impact, maintaining 501(c)(3) status, and showing sustainable operations. Many states prioritize organizations that serve underserved communities or create employment opportunities for hard-to-employ populations.
Community development block grants (CDBG) are one of the most accessible funding sources for thrift stores. These federal pass-through funds allow local governments to support projects that benefit low-to-moderate income residents, making them a natural fit for nonprofit thrift stores. Cities and counties also offer workforce development funds to support job training programs or employment initiatives within your store.
Environmental sustainability grants are another opportunity at the local level. Many municipalities now fund waste reduction and recycling initiatives. Find these opportunities through your city or county website, local economic development offices, or regional planning commissions in your area.
State and local compliance requirements are generally less strict than federal standards, but they still demand accurate reporting.
The key difference is flexibility. Local funders often accept narrative reports instead of complex federal forms. Your thrift retail POS data will still be critical for these applications, giving you concrete metrics on jobs created, volunteers engaged, and the amount of material diverted from landfills.
Timeline expectations are shorter than federal grants. State programs typically announce decisions within 60–90 days, while local grants can move even faster. Some emergency or rapid-response funds provide decisions within weeks.
Plan your applications around local budget cycles. Most state and local governments operate on a July-to-June fiscal year, meaning grant opportunities often appear in spring for the following year's funding.
Another type of grant you might pursue for your thrift store is a foundation grant. These funds come from private charities with specific missions and giving priorities, and they offer more flexibility than government grants.
Unlike state and federal programs that follow rigid cycles and requirements, foundations can make funding decisions quickly and often provide multiyear support for programs that align with their values.
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One of the largest national foundations is the Gates Foundation. This organization focuses on community initiatives and social impact. While they don't have a specific thrift store program, nonprofit thrift stores can qualify under their economic mobility and community empowerment initiatives.
Application windows open quarterly, with grants ranging from $100,000 to $2 million for multiyear projects.
Some of the metrics they’re looking for include:
Bank of America also has a charitable foundation, and its economic mobility programs align well with many thrift store missions. The foundation funds organizations that provide affordable goods, create employment opportunities, and support financial stability for underserved communities.
Applications are accepted year-round through its online portal, and typical grants range from $50,000 to $250,000.
Their application process requires demonstrating clear pathways from your programs to better economic outcomes for your community. Thrift stores might highlight workforce development programs, financial literacy initiatives tied to smart shopping, and community partnerships.
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While primarily a health-focused foundation, the Robert Wood Johnson Foundation (RWJF) may also be a good option for your thrift store if you can highlight the connection between affordable goods access and community wellness. Thrift stores can position themselves as health equity partners by emphasizing reducing financial stress and providing affordable clothing for low-income individuals preparing for job interviews.
Their Culture of Health grants range from $25,000 to $500,000.
Foundations supporting circular economy initiatives are increasingly interested in thrift store operations. A few organizations you may want to target include:
When applying for grants like these, you may want to focus on metrics like waste diversion, carbon footprint reduction, and community education about sustainability.
Lastly, you can explore social impact foundation funding. These foundations tend to focus on workforce development. Organizations like the W.K. Kellogg Foundation and the Annie E. Casey Foundation specifically fund job training programs that serve populations facing employment barriers. Grants typically range from $50,000 to $300,000 annually.
Poverty alleviation grants come from foundations such as:
Community revitalization funding often comes from place-based foundations interested in neighborhood development. The Kresge Foundation and the Ford Foundation both support initiatives that transform underserved communities through economic development, and thrift stores sit neatly in the intersection of these essential services.
Next, you can explore funding from corporate grants or partnerships. Corporate grants come from businesses that invest in their communities as part of their corporate social responsibility initiatives. Unlike the other grants we’ve discussed so far, corporate funding often includes partnership opportunities beyond cash, such as volunteer support, in-kind donations, or marketing assistance.
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One avenue you can explore in this area is finding local retailers who support your mission. Identify businesses that share your values around sustainability, community service, or workforce development.
Independent retailers may not offer much in terms of funding, but can provide support in other ways. For thrift stores, this might mean a furniture retailer donating floor models, a clothing brand providing unsold inventory, or a logistics company offering free transportation services.
Creating win-win proposals requires aligning your needs with corporate priorities. When approaching local businesses, highlight:
Major retailers like Target, Walmart, and Home Depot offer community giving programs specifically designed for local nonprofits. These programs typically fund between $5,000 and $25,000 per project with quarterly application review.
Google for Nonprofits represents one of the most valuable yet underutilized resources for thrift stores. The program includes Google Ad Grants worth $10,000 monthly in free advertising, allowing you to promote donation drives, special sales, and volunteer opportunities. Additional benefits include free Google Workspace licenses and YouTube nonprofit features.
Finally, let’s discuss mission- and faith-based grants. If your thrift store is affiliated with a specific religious denomination, you might be able to explore faith-based grants. Even if you aren’t affiliated, you may find cause-oriented funders that support your mission. These grants often provide more flexible funding and longer-term support than traditional sources.
Denominational funding sources offer substantial support for thrift stores operated by or partnering with faith communities. Major denominations maintain grant programs specifically for community service initiatives.
Faith-based giving networks connect donors with nonprofits sharing their values:
Meeting mission alignment requirements for faith-based funding means demonstrating how your thrift store embodies the funder's religious values, so be sure to highlight these aspects in your application if you seek out funding from these sources.
Cause-specific or mission-driven funds are the last category of grants you might apply for with your thrift store. Three significant mission-driven funds include veteran support, homeless services, and disability advocacy.
Veterans support grants fund thrift stores serving military families and veterans. Organizations like the Bob Woodruff Foundation and Disabled American Veterans Charitable Service Trust provide grants from $10,000 to $250,000 for programs offering employment, affordable goods, or transition support to veterans.
Homeless services funding comes from organizations recognizing thrift stores' role in supporting housing stability:
Disability advocacy grants support thrift stores that employ individuals with disabilities or provide adaptive equipment. The Christopher & Dana Reeve Foundation and the Arc of the United States fund programs that promote independence and inclusion for people with disabilities.
Finding the right grant is just one step of your journey — next, you need to write an application that gets the foundation or organization’s attention. Here are some tips for strengthening your nonprofit grant applications.
Having the right documentation on hand — and in an easily referenceable format — is critical. Create a one-page organizational fact sheet with your 501(c)(3) status, employer identification number (EIN), board list, and service area demographics.
Internally, maintain a financial folder with:
These figures will make it easier to reference this data in your applications when appropriate, or during the vetting process if asked.
Next, build an impact portfolio combining quantitative data (pounds diverted, families served, job placements) with qualitative success stories and photos. Invest in a point of sale system that makes tracking the quantitative and financial information easy.
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If you want your grant applications to run smoothly, you need the right tools. Use your POS system to track sales trends, customer demographics, and donation patterns. You can then make visualizations from this data to demonstrate your community impact when filling out applications.
Some critical data you’ll want to track:
Create a simple dashboard displaying real-time metrics. This can save you hours when pulling current data for applications, and sharing this data shows operational transparency to funders, which makes you a more attractive applicant.
You don’t want to just apply for a ton of grants sporadically. Instead, develop a 12-month grant calendar mapping application deadlines, reporting requirements, and funder meetings. Include buffer time for research and writing to prevent last-minute scrambles. You should:
Create reusable templates for standard grant sections, such as organizational capacity, evaluation methods, and sustainability plans. Customize these for each application, but keep your core messaging consistent.
While grants provide crucial funding, you can’t rely on them alone. Instead, you should implement complementary funding strategies to create steady income for your nonprofit between grant cycles. Here are a few strategies to consider.
Roundup donations offer the simplest path to increased funding. You can easily implement this strategy when you have a point of sale system designed for nonprofit thrift stores like yours. For example, when Triangle ReStores implemented ThriftCart's automated roundup feature, they raised $200,000 in one year simply by asking customers to round up to the nearest dollar. This passive fundraising method requires minimal staff effort and delivers significant returns.
You can also explore point of sale giving campaigns that extend beyond simple roundups. Here are some ideas:
Customer loyalty programs blend rewards with fundraising. Award points for donations, volunteer hours, or referrals, then let members redeem points for exclusive discounts.
When you explore e-commerce for your thrift shop, you can open your mission up to supporters beyond your local area. Online shoppers often pay premium prices for unique vintage finds, and every dollar they spend goes toward supporting your cause.
You can also explore promoting your thrift store and funding needs on social media. Social media campaigns cost nothing but time and creativity. Here are a few tips for social media success:
You might also explore online crowdfunding. However, this approach works best for specific, tangible projects. Instead of trying to use crowdfunding for general operating funds, use this approach when you need to raise funds for a store renovation or a job training program expansion.
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Fundraising events are a great way to raise additional capital while strengthening your connection to your local community. Consider hosting:
These strategies work best when combined with your grant efforts. Your store is more attractive to grant funders when you have strong community support and diversified revenue from multiple funding sources. In other words, it's easier to get more grant funding when you have strong fundraising efforts and community partnerships.
From federal programs to faith-based organizations, there’s no shortage of grant opportunities for nonprofit thrift stores. Each of the five categories we explored in this post offers unique advantages and challenges.
Success in grant funding isn't about chasing every opportunity. It's about building a funding strategy that includes multiple grants, in-store donations, and funds raised from community support. This balanced approach proves your sustainability to funders and protects your store from becoming too dependent on a single source.
Ready to strengthen your funding, but aren’t sure where to start? Begin with one grant application this month. Choose an opportunity that aligns with your current programs, gather your documentation, and submit.
First, you should invest in systems supporting daily operations and long-term growth. The right technology saves time, helps you pull the data you need to complete the strictest applications, and positions your store as a professional, accountable partner worthy of investment.
Want to see how ThriftCart helps nonprofit thrift stores win more grants through better data and reporting? Schedule a demo today.