The Frugal Fashionista: Resale Roundup
Let’s be honest here: Who wouldn’t want a brand new closet of clothes every year? One great way to accomplish this daunting task is by shopping resale. Madison has a plethora of great second-hand, consignment and resale stores. Any store that sells “gently-used” or “previously owned” goods is considered a resale shop. NARTS, the national association for resale professionals, makes the distinction as follows:
A resale shop is the phrase most often used for stores that buy their merchandise outright from individual owners. A consignment or thrift shop can also be called a resale shop, but ONLY a store that actually consigns their inventory can be called a consignment store. A thrift shop is run by a nonprofit organization to raise money to fund their charitable causes. A consignment shop accepts merchandise on a consignment basis, paying the owners of the merchandise a percentage when and if the items are sold.
A majority of consignment shops pay 40 percent of the price of an item back to their original seller, but it can depend on how long your item sits on a rack before it sells. If you plan on donating to a thrift shop and are hoping to get a tax deduction, make sure you give to a federally approved 501(c)3 charitable organization. The organization must give 100 percent of store profits (after expenses) directly to charity and adhere to strict federal guidelines in order to give tax-deductible receipts.
Catch up with me next week and I’ll share my favorite resale items to shop for!