GiveShop Inc. is an Ottawa based start-up on a mission to make it easy for Canadians to further support their favorite charities. The GiveShop online marketplace allows donors and buyers to exchange gently used items with proceeds benefiting charitable causes across the country.
How Does This Help Charities?
Charitable giving in Canada has been on a gradual but steady decline over the last number of years. While a large number of Canadians continue to support charities with cash donations, the average frequency and size of donation has been steadily falling. A majority of donors indicate that while they would like to give more, they simply cannot afford to. As a result, charities are feeling the pinch and looking for new ways to raise funds in order to maintain the vital services that they provide to our communities.
Meanwhile, the used economy in Canada continues to grow aggressively year over year with tens of billions worth of used items turning over annually. This is where GiveShop comes into play – offering a link between these two trends. Canadians can help their charities and communities by simply donating or buying gently used items that are lying around in their basements, garages or storage units. Using the GiveShop app is easy and free to users, with proceeds from all sales flowing directly to the chosen charity. Donors and buyers handle the item exchange and charities handle the cash donations. That’s the GiveShop solution.
How Does this Help Canadians?
GiveShop makes it easier for Canadians to support charities that are important to them simply by donating or purchasing gently used items. Research shows that we would all like to give a bit more to charity and GiveShop offers an innovative way to do this. As an added benefit, donors of items that sell on the marketplace receive a tax receipt for the full value of the sale. Buyers can shop for items of value and know that their purchase dollars are going to charity.
Our Business Model
GiveShop has invested considerable time and capital in developing an innovate marketplace that offers our charity partners a performance based, risk-free fundraising channel. It is free for our charity partners to appear on the GiveShop app. When an item sells, GiveShop collects a platform fee that is deducted from the sale proceeds. We are a purpose-driven, for-profit enterprise aiming to maximize the positive social impact of our marketplace by harnessing the power of business and entrepreneurship.
Frequently Asked Questions
Q. Why can’t I just donate my item directly to the charity?
A. Due to the cost and complications with in-kind gifts, many charities have a policy of not accepting these donations.
Q. What types of payments can be made on GiveShop?
A. GiveShop uses the Stripe payment platform, which accepts any credit card as well as Visa/Mastercard branded debit cards.
Q. How do the charities receive the funds and the information to issue a receipt?
A. The payments made via the GiveShop App go directly to the designated charity along with the name and address information donors provide when setting up their GiveShop user account.
Q. What type of company is GiveShop and how does it make money?
A. GiveShop is a for profit, fundraising company that serves the charitable sector in Canada. Other fundraising companies that you may be familiar with include auction providers, telemarketing firms, direct mail houses and event planners that work on a fee for service basis with charities across the country helping them raise much needed funds. The costs of these various services varies between 15 and 50% of proceeds raised. Imagine Canada (ImagineCanada.ca) published a research paper called Charitable Fundraising in Canada: Results from a National Survey of Fundraising Practices of Canadian Charities that found that the average cost of raising a dollar using various fundraising initiatives was 26 cents or 26% of proceeds. GiveShop charges a standard platform fee of 15% of sale proceeds from items that sell on its marketplace. Our charity partners appreciate the fact that our fee structure is 100% performance based and presents them with a risk free fundraising channel.
Q. Is there a minimum amount for a charitable receipt? Will I receive a paper or electronic receipt and how long will it take receive it?
A. Both answers will vary from charity to charity as they each set minimums for the issuance of a charitable receipt and have differing time lines to issue electronic or paper receipts.
Q. How do charities calculate the amount of the tax receipt they issue?
A. The amount that donors and buyers agree upon for the sale of the item is the amount charities use to issue the tax receipt.
Q. Is GiveShop available across Canada?
A. We are launching the GiveShop marketplace in our hometown of Ottawa with the goal of rolling out nationally in the months ahead. Stay tuned!