Nonprofit organizations are currently operating in a competitive environment. There are ups and downs because donations don’t come in a steady stream. Therefore, developing a different revenue stream to supplement grants is a good option.
E-commerce is a growing part of the economy, and in recent years there has been a consistent rise in e-commerce sales. If you are running a non-profit organization, then an e-commerce store is a better option for you. It is one method to diversify the income for your nonprofit.
It’s a difficult task for nonprofits to execute their mission while keeping the company viable. In that case, selling merchandise through an e-commerce store is a great idea. Because nonprofits are exempt from federal taxation, they must abide by certain legal requirements.
In other words, if there is a nonprofit online store selling merchandise, then it is considered taxable. Before setting up your website, you need to talk to your financial advisor to determine the effect of an online store on your organization.
A nonprofit online store could be a source of steady revenue generation for your organization, filling the gap left by inconsistent donations. But for that purpose, you should have a holistic fundraising strategy.
For instance, setting up a charity website provides another avenue for people to donate. Also, if you offer a product for sale, this could be a source of steady income, unlike a single grant or donation.
Ideally, your merchandise should be in line with your company’s mission. If your company is dedicated to cleaning up the environment, selling something like paper or fabric bags would be a good idea instead of plastic bottles. Similarly, if your company is fighting for animal rights, then focusing on selling vegan leather goods highlights your mission. Ask your donors what they would like to buy from you. Turning a popular class into a webinar to make people pay for your cause is another good idea for fundraising.
Unlike for-profit organizations, your nonprofit online store’s purpose should be to cover the expenses required to run the organization. Excessive revenue may be subject to taxation. After selecting the desired online retail platform, decide which items to sell and devise a pricing strategy.
Do some market research with other nonprofit organizations and ask about their target profit margin to get an idea about not exceeding your limits.
Some companies genuinely align themselves with a charitable cause or social or environmental justice mission. While others operate a normal store under cover of charity, benefiting from organic traffic and searching for something meaningful.
In this article, we have tried to mention some legitimate nonprofit e-commerce stores that donate to a good cause.
An online pet store that sells dog products. Additionally, this online store for nonprofits is dedicated to saving rescue dogs. They claim to donate 100% of the profits to shelters.
As evident from their name, the crafters at PinCause make little art pins for your cause. They do this by drawing or making collages of small art pieces together on behalf of anyone’s request. This can be used for a rally, awareness day, or town hall meeting. Spreading your mission with their pins to raise money for the event is a good idea.
It’s a website where you can find more than sixty fair trade craft vendors from different parts of the globe. In this way, this platform empowers small businesses run by local craftspeople around the world.
The foundation of this nonprofit e-commerce lies in employing and empowering women to break the cycle of women’s slave labor. They do this by offering CAUSE GEAR 5X jobs. Every purchase you make from this online store helps to support an ethical wage job paid by their manufacturing partners that is five times higher than the average wage in that region.
Gifts with Humanity
It is a sister organization of Global Craft, founded by the same visionaries. However, it has a much better aesthetic and a curated collection of the best fair trade artisans.
Fair Trade Flair
This nonprofit e-commerce store started when its founder while traveling, happened to meet local artisans. To appreciate the world’s rich cultural diversity, this Fair Trade Flair came into being, showcasing the work of artisans from every part of the world. There are around 200 products to offer, ensuring high standards and fair money allocation to all participants.
Share to Give
Another online store for nonprofits on that use partners with celebrities and piggybacking to raise money or drive sales for causes. Their website uses some work to help site users understand the causes they are supporting or have worked with in the past.
Since 2014, this has been one of those online stores for nonprofits that fight for animal rights. They sell vegan leather brand products from different brands. Not only do they source their products compassionately, but they also donate 5% of their profit to an animal sanctuary and education center.
This e-commerce for nonprofits designs cool t-shirts, spreading positivity through their good designs. They claim to give 100% of their profit to nonprofits.
House of Awareness
A mindful online store selling motivational pins, keychains, and similar products to help people struggling with autism, cancer, heart disease, mental health issues, and more. It is a great place to buy gifts for someone struggling with any problem in their life, to whom House of Awareness donates 10% of their profit.
Building a nonprofit e-commerce store can help you increase sales and improve fundraising for your cause. Use your organization’s social media pages to attract more people and improve sales. Setting up the store can let donors find you easily and lessen your dependence on traditional donations. Create an appealing website to promote your online store for nonprofits to current and new donors.