How to Run a Nonprofit Thrift Store That Doesn’t End Up in the Clearance Bin

Thinking of opening a nonprofit thrift store? Before you dust off those donation bins, take a lesson from Kate Thoene, CEO of New Life Center., as she gives us a masterclass in turning a pile of secondhand shoes into sustainable impact. Spoiler: It’s not as easy as slapping a price tag on old lamps and hoping for the best.

At Hope’s Closet, the social enterprise Kate oversees, “we don’t take anything that makes you ask, ‘Should I donate this or toss it?’” That tough-love clarity is part of what keeps their thrift shop not just afloat—but thriving. From curated donation bins and strategic store layouts to voucher programs for survivors of domestic violence, Kate walks us through how her organization uses retail to empower recovery, generate unrestricted revenue, and build community loyalty.

She breaks down staff structure (a mix of full-time employees and 1,000+ volunteers), donation flow (“you need new items hitting the floor daily”), and even how color-coded tags help them cycle out stale inventory. Plus, we learn about their fruitful partnership with Big Brothers Big Sisters—where unsellable items are bought by the pound, keeping the store clutter-free and the landfill grateful.

Don’t miss how this 5,000-square-foot shop became a community engine, churning out real, trackable impact. Kate shares insights on metrics, bonus incentives, messaging at point-of-sale, and even the exciting possibility of store #2. And yes, there's a half-off sale where even the “rules” go on discount.

If you’ve ever wondered whether charity shops are worth the effort, Kate answers that with a resounding yes—as long as you’re ready to think like a retailer, hustle like a startup, and lead with mission.

"The more we sell, the more we help survivors of domestic violence." — Kate Thoene

00:00:00 Today’s topic: Are thrift stores worth it?
00:01:55 What New Life Center does—and how Hope’s Closet began
00:03:42 The donation overflow that started a social enterprise
00:05:26 How vouchers empower survivors with dignity
00:06:59 Tips for getting quality donations consistently
00:10:03 Seasonal sales trends and revenue diversification
00:11:45 Selling both on the floor and by the pound
00:13:56 Staff, volunteers, and running a smooth thrift operation
00:15:41 Production flow and the secret to a fresh sales floor
00:17:14 Hiring, retail knowledge, and connecting sales to mission
00:19:09 Leveraging POS tech and staff bonuses
00:21:12 Sales strategy, color tags, and breaking the rules
00:24:00 Exploring a second location and future growth

#ThriftWithPurpose #thriftstores #TheNonprofitShow

Find us Live daily on YouTube!

Find us Live daily on LinkedIn!

Find us Live daily on X: @Nonprofit_Show

Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

Send us your ideas for Show Guests or Topics: [e-mail]
Visit us on the web:The Nonprofit Show