Goodwill changes its image, rides consignment wave - Is it still a charity?
Filed under: Fashion, Designers & Brands
While it's no secret that a pretty good-sized chunk of Goodwill's revenue comes from well-to-do bargain hunter types, and not the low-income demographic that they initially set out to serve, are we OK with it when they start acknowledging that? Apparently, a handful of Goodwill stores around the country have hired advertising agencies and, in one case, even launched a fashion blog to help recast the brand's image from a charity into a mecca for sweet deals on designer clothing.As peoples' budgets continue to tighten up, we've been seeing tons of headlines about the unexpected rise of the consignment shop. Heck, even Sarah Palin shops consignment, and we're pretty sure she could afford the stuff at standard retail prices. Goodwill Industries has apparently been paying close attention and looking to cash in on the trend.
According to the Times, Goodwill in Indiana is running an honest to goodness TV ad campaign, touting bargains on brand names like DKNY or Ralph Lauren. So, what's the difference between Goodwill and Burlington Coat Factory again?
Well, aside from the fact that Goodwill is allowed to use government-mandated labor -- one of our roommates did hundreds of community service hours at a Goodwill -- the company also gives back in a big way. In fact 84% of their revenue goes into job training, placement, and other programs.
Sure, they have a responsibility to increase the company's bottom line, but do you think this business model could negatively affect their charitable mission?
[via Fashionista]
Kelly 11-06-2008 @ 10:47PM
their charitable mission is first to provide jobs to people who otherwise might not be able to get them. It just so happens that they also provide an inexpensive place to buy clothes. I have been shopping at goodwill for years. If this ad campaign helps bring people in who are willing to spend alot of money then more power to them because, as you said, 84 % of their revenue DOES go into job training and other programs. What are you whinning about?
Reply
Kris 11-06-2008 @ 10:47PM
Goodwill is not just for people with low incomes to shop & never has been. Everyone can shop Goodwill stores for great deals on good quality items. The stores were created to fund the mission of workforce development - training people for jobs and helping them become economically self-sufficient. Growing a nonprofit business and staying competitive is not non-charitable - it's smart. The more people who shop Goodwill, the more people who can be served by the organization. Everyone wins. Plus, Goodwill keeps millions of pounds of items out of landfills through reuse. Advertising and blogging are tools to let people know about the stores. Nonprofit isn't literal - it means profits go back into the organization's mission.
Reply
the DC Goodwill Fashionista 11-10-2008 @ 12:52PM
Kris and Kelly are right on. And a pretty good chunk of Goodwill's revenue - at least in DC - does NOT come from the well-to-do. It comes from fundraising, the contracts division (which employs nearly 85% people with disabilities per site via the Ability One program), and the workaday folks who shop in our stores.
But like these gals (I'm assuming they're gals) point out, so what if the wealthy shop at Goodwill? The mission isn't low-cost clothes, it's training and employment. And the revenue of Goodwill retail stores directly supports that mission, often by employing the very people we serve within the retail stores themselves.
Thanks for providing an opportunity to discuss further Goodwill's mission and bringing attention to how this venerable brand is reinventing itself for the 21st century. We're just getting started! -the DC Goodwill Fashionista
Reply
Fashionably Frugal 11-17-2008 @ 3:57PM
Goodwill is a case study in social entrepreneurship! They help train and place people into jobs through the use of traditional lines of business, selling items that are donated to them in order to generate more money with which to help people. In today's environment, are you more capable of donating money to charity or old clothes and household items? My guess is the later. The more money Goodwill makes from reselling items that are donated to them, the more people they can help. Anyone who thinks this is somehow a bad idea needs to reevaluate their social conscience. First of all, everything at Goodwill is cheap, no matter what your lifestyle, second every sale helps people find jobs and finally, everything you donate to Goodwill stays out of landfills making it an environmentally friendly act as well.
Reply