Charity shops profits up 12 per cent 2

Finance | Tania Mason | 3 Oct 2011

Charity retailers enjoyed the biggest jump in profits for more than a decade last year, exclusive new research carried out by Charity Finance shows.

The annual Charity Shops Survey, now in its 20th year and sponsored again by BDO, has found that while commercial high street retailers are struggling in the economic slump, charity shops are thriving.

The 75 charities that took part in this year’s survey recorded total profits of £153.1m on income of £670.5m. Comparing the results from those charities that took part in last year’s survey as well as this year’s, revenues have risen by 6 per cent and profits by 12 per cent.

The British Heart Foundation topped the income league table for the second year running, with total income of £133.4m, while Oxfam recorded the highest profit at £26.9m.

Some 140 net new shops opened during the year and 70 per cent of the charities surveyed expect to expand further in 2012, taking advantage of the competitive rental market.

Use of gift aid is growing too, with almost three-quarter of respondents now claiming gift aid on donated items. For the British Heart Foundation and Sue Ryder alone, reclaimed gift aid contributed £9.3m last year.

The proportion of charities selling goods through eBay increased to 70 per cent last year, up from 66 per cent the year before. And other third-party sites such as Amazon and ABE Books also grew in popularity, with 24 per cent of charities using them, up from 18 per cent the previous year.

At the same time, less charities are selling goods through their own websites – 44 per cent compared with 51 per cent in 2010.

Other findings show that charities are being priced out of hosting clothing collection bins as cash-strapped local authorities start to charge site rental in a bid to raise revenue.

Subscribers to Charity Finance and civilsociety.co.uk can click here to read more and to download the full survey. To buy the survey, click here.

Directory: British Heart Foundation | Oxfam | Sue Ryder

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Helen
Owner
Castle Bell News
24 Apr 2012

Steve is absolutely right on his observations - further to the 133.4 million in profits last year, Very little if any of that went back into National insurance of tax - since they don't pay the staff.

Whilst these charity shops served a useful purpose in the community, providing low cost items - this is no longer the case. Prices are in many cases comparative to any other high street retailer. The have indeed superceded their initiatial objectives becoming dominant reatilers in every town. No Rates to pay, no tax, VAT exempt, no paid staff contribution along with the rest of society. Turning a blind eye to these matters it would be a nice feeling to think all the profits would be spent on the needy and elderly here in the UK - but sadley that's isn't the cases either. Chrity shops are now multi million pound empires - they should too be taxed - like the rest of us.

[Reply]

Steve
owner
coffee shop
30 Jan 2012

I applaud the charity shops for there achievement. But they are also causing the demise of hundreds of small businesses due to the blatant selling of New bought in goods.
You pay no rates(or very little) and rely on volunteer staff.
Unless you change your policys and only, I repeat only, sell donated 2nd hand goods, Charities will be the cause of mass closure and the loss of real paid work.

[Reply]

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