Donations down, charity thrift-store sales up among Chicago non-profits

March 2, 2009 – How's this for a deal? An eight-piece dinner set, which funds programs at the Children's Memorial Hospital for $45. Or a pair of vintage cowboy boots for under $10 that saves a cat's life?

Local charity stores have always been a goldmine for budget-conscious shoppers while also providing much-need funding for community programs. However, as local charity thrift stores' sales increase, some report of donations dropping off.

Thrift stores like the Brown Elephant, which supports the Howard Brown Health Center and the White Elephant, associated with Children's Memorial Hospital, both have reported sale increases, yet said the economy was having an impact on current donation levels.

The White Elephant Shop saw a decrease in donations at the end of December and January, a historically busy time. Yet, they have seen a 10 percent increase in clothing sales along with furniture and household items, and are projecting a sales growth for the year.

The White Elephant Shop receives donations from the Lakeshore, Gold Coast and Lincoln Park areas. Leonard Muircroft, director of retail operations, said those and several other area donors are probably to "get more practical" in terms of redecorating during the recession therefore contributing to a drop in furniture donations. 

Donald Rolfe, director of development for the Brown Elephant Retail Stops, said the agency has had "to make adjustments in terms of expectations" for this year's budget.

However, this has had no impact on the 28,000 clients they serve, 50 percent who are uninsured, in the LGBTI community.

Rolfe said they are "casting a wider net" by going beyond their current northern and southwestern boundaries for donation pick-ups to maintain current budget needs.

But for one thrift store, donations haven't been enough to continue to support a much-needed community program.

The Ark, a not-for-profit, community-funded social service agency based on Chicago's North Side, will discontinue a vocational workshop in March due to a drop in profits. In January, they lost money and are hoping to break even by the end of February.

Revenues from the Ark's two shops provide support for a wide range of social and medical programs, such as a food pantry, mental health services and housing for the homeless.  

Miriam Weinberger, director of the Ark, said there is concern about making their budget this year due to two factors — an increase in minimum wage, and operations costs have risen. What's more, Weinberger said there has been a 25 percent increase in requests for food assistance.

Weinberger said historically winter months have been "losing months for them" but because the weather was especially harsh this year, "it's been worse than ever." The lack of donations could be linked to the economy, as people are being reluctant to redecorate.

Profits from sales of their most profitable item, furniture, have been down while clothing sales are up.

Weinberger says stores like Wal-Mart and Sam's Club have had impact on their sales.

"It's very difficult to compete with them with used clothing," said Weinerger.

Weinberger said they having to sell more slacks and shirts to make the same profits as they would from furniture.

"I think it's all the economy. People are very worried and cautious so they are reluctant to go out and buy new furniture," said Weinberger about January's losses.

"Even our customers are being cautious of what they are spending."