FAQs - Charity shops
- What is a charity shop?
- When was the first charity shop opened?
- How many charity shops are there in the UK?
- Who works in charity shops?
- Why do people shop in charity shops?
- Where do the goods in charity shops come from?
- What do charity shops sell?
- What tax concessions do charity shops get?
- What happens to the money that is raised?
- How can I complain to a charity shop?
1. What is a charity shop?
Charity shops are largely a British institution.
They are retail outlets selling mainly second-hand donated goods
to raise funds for their parent charities. Traditionally, charity
shops used to occupy unlet or unpopular shops but the majority
are now not only permanent, but are often in prime trading locations
in high streets and market towns. They also function as a way of
raising awareness of the parent charity. If you would like more information about how charity shops work please click here.
Charity shops can only be set up by charities. An individual cannot set up a charity shop.
2. When was the first charity shop opened?
In the 19th century the Salvation
Army ran second hand clothing shops to provide the urban poor with
cheap clothing. Other charities also operated shops during the
Second World War to raise money for the war effort and relieve
hardship. However, modern charity shops as we understand
them - retail units selling
overwhelmingly donated goods to raise as much cash as possible for
the parent charity - did not appear until after WWII. The first of these
was opened by Oxfam in 1947/48 and is still in operation today.
Oxfam had been swamped by donations from the public (mostly
blankets and clothing) following its appeal for aid to alleviate
the post-war situation in Greece. The success of this appeal yielded
so many donations that it was decided to set up a shop in Oxford
to sell a portion of these and to use the profits to further fund
aid in Greece.
3. How many charity shops are there in the UK?
Our current estimate is over 7,500 and there are hundreds in London
alone. Charity shops can be found on high streets throughout the
country.
Within those 7,500 shops we estimate that there are:
6,000 in England
650 in Scotland
300 in Wales
200 in Northern Ireland.
4. Who works in charity shops?
Although there has been an increase in the number
of paid staff in recent years, the majority of people working in
charity shops are volunteers. There are more than 120,000 volunteers
nationwide, and some shops are run entirely by volunteers.
5. Why do people shop in charity shops?
Many people shop in charity shops because they want to support the activities
of the parent charity. A growing number of people use charity shops because
of the environmental and ethical benefits of the reuse of goods, rather than
buying completely new goods, or simply dumping used goods. Other people shop
in charity shops because they like the range of goods available - many charity
shops stock clothes, furnishings, crockery, CDs and videos which are no longer
available in other stores. Many people visit charity shops to pick up retro clothing
in particular. Charity shops are also popular because the prices charged for items
are often lower than other shops, even commercial second-hand shops.
6. Where do the
goods in charity shops come from?
88% of the goods sold in charity shops are donated by the public;
however, some shops do sell what are termed ‘bought-in’ goods. These
are new goods which are bought and sold for profit. Many shops - especially
smaller hospice shops - sell only donated goods, but others (such as Oxfam)
sell both bought-in and ethically produced ‘fair trade’ goods. However, a shop
must sell wholly or mainly donated goods in order to retain its status as serving
a "charitable purpose. Donations of goods and their sale in charity shops are
environmentally friendly actions, as goods are reused, rather than being
discarded or simply recycled.
7. What do charity shops sell?
Most charity shops sell ladies', men’s and children’s
clothing, books, toys, ornaments, kitchenware, videos, music, computer
games, furnishings and bric-a-brac. Some charity shops also sell
furniture and electrical appliances, and some are specialist shops,
such as charity bookshops, bridal wear or music shops.
As most of the items sold are donated and much
of the work is voluntary, charity shops have relatively low costs.
8. What tax concessions do charity shops get?
Charity shops benefit from tax concessions under
UK tax law because all the profits from a charity shop go to fund
the work of the charity, which provides public
benefit. Charity shops, therefore, serve a "charitable purpose". Charity shops benefit from exemption from corporation
tax on profits, a zero VAT rating
on the sale of donated goods and 80% mandatory non-domestic rate relief.
This 80% relief is funded by central Government. A further 20% rate relief is available
at the discretion of local authorities.
9. What happens to the money that is raised?
Money that has been raised goes towards the parent
charity, to further their charitable work. Every year charity shops raise more than £110 million,
funding medical research, overseas aid, environmental initiatives,
supporting sick and deprived children, homeless people, mentally
and physically disabled people, for animal welfare and for many
other causes.
10. How can I complain about a charity shop?
The Association does not deal with complaints about individual charity shops but expects their members
to have a proper complaints procedure in place to deal with concerns from the public. The best way to deal
with a complaint is to raise the issues with either the charity shop manager or the charity’s head office.
The charity will want to be made aware of your complaint. You can telephone the Charity
Commission if you want to find out the contact details for a particular charity on 0845 300 0218.