While many charities are trying to find new and innovative ways to fundraise, one venue that seems to be quite successful for many not-for-profit organizations is storefronts. To supplement traditional fundraising methods, increasing numbers of nonprofits are offering their donor base products that have a direct link to their organization and its mandate from a store set up in their offices. Increasingly too, they are also able to attract the attention and eventual financial support of the general public, passing by their storefronts and drawn into the building by an attractive T-shirt or poster.

Nonprofit organizations initially started storefronts with a fairly simple mandate. “We just wanted to find another way to raise more money for our cause without a lot of extra costs,” says Edith Vuchnich, a volunteer at the YWCA International Boutique located in downtown Toronto. They began selling hand-knitted items at the office’s front desk, and soon had added seed necklaces from the Caribbean. This blossomed into another store where volunteers sold goods on consignment. “We began to work with artists and crafts people in developing countries, sharing the profits with their organizations,” explains Vuchnich. They even take the show on the road, selling at bazaars and conventions.

An added bonus is that the physical presence of the store also gives the volunteers a chance to get their message out to the public. “People stop by and ask what the boutique is all about, which gives us a chance to talk about the work the YWCA does,” says Vuchnich. In 1996, the storefront activity raised $10,000, which was then doubled by an equal donation from the federal government.

For UNICEF, an evolutionary process

One organization that has been very successful with its storefronts is UNICEF Canada. “Our involvement with storefronts started out by accident,” remembers Jerry Seligman, Director of Marketing. “We had a number of offices where people who came in could buy products. Eventually, some of the provincial offices started to set up a space apart from the general area of operations, and in time, these spaces became bigger and bigger and evolved into the storefronts we currently have.” Many of the public stop by the UNICEF office in Toronto to purchase everything from cards, calendars, and stationary, to children’s toys and games to mugs, T-shirts and caps. “It’s really popular because people want to see the products as well as avoiding the postage and handling costs,” says Seligman. The gross revenue from efforts of the storefronts have generated approximately $1.6 million across the country.

The success of UNICEF Canada and other not-for-profits which have used storefronts as part of their fundraising efforts has spurred on other organizations to test the concept. The World Wildlife Fund Canada has ventured into storefronts by setting up a temporary store at the Royal Winter Fair and a counter at its office during the Christmas season to capture walk-in traffic. “During the holiday season, we were thrilled with the response of people coming into our office to purchase baseball caps, T-shirts and umbrellas with our very identifiable, logo which helps us sell our products,” says Richard Barr, WWF Canada’s Chief Operating Officer, referring to the organization’s well-known panda logo. “We raised almost $30,000 around Christmas, and are looking into making this a more permanent part of our fundraising activities.”

Although this effort does not account for a large part of its donations, Barr sees it as an import aspect of fundraising for the organization. “Many people who donate money to WWF Canada designate where they want their money to go, while others want to contribute to research or directly to endangered animals,” says Barr. “The proceeds from selling our products at our office can be put towards general funds for salaries and operating costs, which are of course absolutely essential but for which people are not as willing to donate their money.”

Sometimes an advertising vehicle

Not all storefronts, however, are established to generate greater revenue for the not-for-profits involved. Sometimes they are primarily an advertising vehicle to raise awareness and the profile of a charity, in the hope that the activity may translate at a later point into greater public financial support for these organizations.

When one strolls down a fashionable stopping district in the heart of downtown Toronto, OXFAM‘s Bridgehead store is nestled in a quiet enclave to appeal to socially conscious consumers and those who love hand-crafted goods. Other stores linked to Oxfam can be found in urban centres such as Ottawa and Vancouver and elsewhere around the world operating under the name, Oxfam Trading. “When people think of Oxfam in Canada, they think of Bridgehead,” says Robin Walsh, Communications Coordinator for Oxfam Canada. “Many people tell me they’ve shopped in either Bridgehead or Oxfam Trading. The recognition of the store is a real boost to the public’s knowledge of our organization.”

There are still other reasons why Oxfam is involved with storefront ventures. “These stores manifest what our organization is all about,” says Walsh. “It’s what we believe in and work for in practice.” Oxfam’s goal is to alleviate poverty by helping to create communities that are more self-sufficient. This long-term view of development is embodied in the relationship that the stores have with the producers of the products they sell to consumers. In this round-about way, consumers have a more direct link with people they want to help and a cause they want to support rather than by donating funds to a middle-man such as a nonprofit. This approach takes fundraising to the level at which a closer relationship is established between the individuals in need and the donor – without the negative connotations of the “charitable” label.

Not designed to generate profits for Oxfam

Bridgehead, the trading arm of Oxfam, provides promotional and marketing materials for Oxfam and supplies literature on the organizations at each of its stores. Although a wholly-owned subsidiary, it has its own board of directors and separate staff, and as Walsh points out, is not a profit-making venture. “The money made is used to run the stores and to reinvest in the communities where the `producers’ live and work.”

The whole idea behind Bridgehead is providing people in developing countries a fair market for their products and helping them create their own economic development. “We are providing an opportunity for artisans and marginalized people living in developing countries to make some money for their personal and community good,” says Rebecca Dunk, manager of retail stores of Bridgehead Inc. “We don’t think people should depend on goodwill forever, but rather ensure that they develop skills which can be used to sustain development.” Artisans are given interest-free loans, share in the profits, and are paid above the market prices for their wares. “The stores give Oxfam a tangible presence, and are a launching point for practicing the organization’s mission,” says Dunk.

The stores are largely staffed by volunteers who contribute their artistic skills for window displays, volunteering time as cashiers or providing public relations experience. Running a store does take some business acumen, however, so the Bridgehead stores do have a paid business manager. “The bottom line is that we need to be competitive with other stores to attract both mainstream consumers and Oxfam members,” says Dunk. “We have to offer beautiful products, display them well, and have fair prices.”

Use existing office space

“Setting up a storefront in an already existing office is a great way to increase revenue without incurring a lot of extra costs,” recommends Barr. “In the case of WWF Canada’s offices, the stores we have set up don’t take up too much room, we don’t have the cost of advertising or rent for a store location, and are using products and facilities we already have.”

Many offices are located in an easily accessible location at street level. This makes it attractive for walk-by patrons as well as great advertising for the organization. “A large number of our storefronts are located in prime retail locations,” says Seligman. “We are thus able to reach the general public as well as our traditional donor base.”

Bridgehead naturally makes its consumers aware that part of the proceeds of the products they are purchasing is going to a good cause. UNICEF’s card program, for example, the organization’s number two source of revenue – includes its logo on the back of every card it sells, so the purchaser knows they are contributing to the organization. “And that is really what is important in the end,” says Seligman.