What You Need to Know About Online Stores for Nonprofits

Did you know that of customers who receive branded merchandise from businesses and other organizations, 80% are more likely to recommend the brand to others? Your nonprofit could unlock similar benefits by selling products to its supporters. But to do this effectively, you need an online store. 

Selling nonprofit merchandise will revitalize your organization’s fundraisers, expand your reach, captivate your supporters, and provide sustained impact throughout the year. This step-by-step guide has everything you need to launch and run a successful online store for your nonprofit:

• Can Nonprofits Sell Products?
• 8 Reasons to Open an Online Store for Your Nonprofit
• Integrating Your Online Store into Your Fundraising Strategy
• How to Choose the Best Platform for Your Online Store
• How to Set Up Your Nonprofit’s Online Store
• Tips for Starting Your Nonprofit Ecommerce Shop

Can Nonprofits Sell Products?

Yes, nonprofits can sell products and services. These products and services must generate revenue to support your work and should be related to your mission. Additionally, ensure the items resonate with your target audience to boost sales.

Learn more: While selling products is a great way to raise more for your mission, there are some legal and tax considerations to keep in mind.

8 Reasons to Open an Online Store for Your Nonprofit

Beyond being a transactional space, online stores serve as a strategic avenue for you to magnify your presence and propel your organization toward lasting and meaningful change. As you decide whether to launch an online store, consider these compelling reasons:

1. Global reach: An online presence allows your nonprofit to reach a wider audience. This extends your impact beyond your local community and can attract new supporters globally.
2. Brand visibility and recognition: Branded merchandise—particularly apparel—is a walking advertisement for your nonprofit. When supporters wear your items, they enhance your brand visibility and recognition.
3. Community engagement: Selling merchandise fosters a direct connection between you and your supporters, nurturing a sense of community engagement. Additionally, it can open the door for partnerships with other nonprofits, local artists, corporate sponsorships, and more.
4. Donor incentives: Merchandise can be a compelling incentive for donors, encouraging contributions and offering a tangible way to acknowledge their support.
5. Data insights: Online sales provide important information about supporter preferences and buying habits. This helps you adjust your merchandise and marketing strategies accordingly.
6. Revenue diversification: Merchandise sales provide a new income stream for your nonprofit. This will prevent you from relying too heavily on just one or two income streams, making your organization more financially stable.
7. Access to unrestricted funds: Often, donations come with restrictions and rules for how the money can be used—but the profits from your merchandise sales don’t. You can use these funds however you see fit, giving you flexibility to support your organization’s top priorities.
8. Continuous fundraising: Unlike one-time events, an online store operates continuously, providing a consistent avenue for fundraising efforts without being tied to specific dates or locations. Your online store can always be active!

Nonprofit online stores are a prime example of technology and community working smoothly and effectively to help you reach your funding goals. Online stores can revolutionize the game for nonprofits and provide a versatile approach to fundraising. 

Integrating Your Online Store into Your Fundraising Strategy

By introducing an online store into your current campaigns, you can tap into new audiences, funding sources, and fundraising strategies. Keep these factors in mind as you begin fundraising via your online store:

• Strategically select merchandise: Choose merchandise that aligns with your mission and resonates with your target audience. For example, a conservation organization might offer branded, reusable water bottles to reduce single-use plastic waste. When you offer items that reflect your organization’s established values and purpose, you secure a stronger connection with your supporters.
• Consider developing themed campaigns: Design merchandise that mirrors the theme of your broader campaigns, fostering a sense of community and shared purpose. For example, celebrate specific events, milestones, or causes.
• Seek out collaborations and partnerships: As mentioned, selling merchandise can be a natural introduction to partnerships with individuals and organizations in your community. Collaborate with artists, influencers, or other organizations to co-create and promote exclusive merchandise. These projects expand your reach and bring fresh perspectives to your merchandise selection.
• Incorporate storytelling: Tell the story of your nonprofit and its beneficiaries in your product descriptions and marketing materials. Share the impact of each purchase, connecting the merchandise to your mission and the tangible difference it makes.

The good news is that opening an online store doesn’t require a complete overhaul of your existing fundraising approach. Instead, consider this a strategic integration of a new income stream.

How to Choose the Best Platform for Your Online Store

Selecting the right platform for your nonprofit’s online store is pivotal for success. The platform you choose becomes the backbone of your fundraising efforts, impacting integration capabilities and, ultimately, contributing to achieving your organization’s mission.

For example, Bonfire offers all the features you need for your ecommerce shop:

• Ease of use: Bonfire offers a user-friendly interface that’s easy for administrators and customers to navigate.
• Nonprofit-friendly cost structure: Understand the platform’s pricing model, including transaction fees, subscription costs, and any additional charges. Choose a solution that aligns with your budget and financial goals. Bonfire’s platform is free and has no upfront costs.
• Integrations: The platform you choose must work with your current systems, like payment options, accounting software, and customer relationship management tools. For instance, Bonfire integrates with Classy fundraising software, making it easy to launch peer-to-peer t-shirt fundraisers via our Giving Campaigns. 
• Customization options: Look for platforms that allow you to customize your online store to align with your nonprofit’s branding and mission. This also gives your shop a more professional look.
• Excellent customer support: Evaluate the platform’s level of customer support. Responsive, accessible support is crucial for troubleshooting issues and ensuring smooth operations.
• Analytics and reporting: Opt for platforms that offer robust analytics and reporting tools. These insights can help you understand customer behavior, track sales, and refine your strategy to maximize revenue.
• Flexible payment options: Make sure the platform you choose offers a variety of payment options for your supporters, such as credit and debit cards, gift cards, PayPal, and Amazon Pay.
• Reduced donation fees: Once your nonprofit is verified on Bonfire, processing fees are significantly reduced from 8% to 3.5%.
• Customizable organization profile pages: Your organization’s official profile page is your nonprofit’s place to tell your story, highlight active campaigns, and show off your fundraising stats and progress.
• Downloadable supporter list: You can effortlessly export the contact details of your supporters from all your connected campaigns in a user-friendly CSV format.

Bonfire was created with nonprofits in mind, with features that address common fundraising challenges and discounts that help you keep more of your hard-earned funds.

How to Set Up Your Nonprofit’s Online Store on Bonfire

Creating your nonprofit online store on Bonfire is super easy. Here’s what the process looks like: 

1. Set up your Bonfire account. 
2. Select the “Create My Store” button or click the “My Store” tab on the dashboard to begin. 
3. You’ll be prompted to customize your store. You can change your store name at any time.

You can add merch campaigns—we allow a minimum of 1 and a maximum of 50 campaigns. You can also customize the look of your store for a more polished, professional touch. Once you’ve got everything set, all you have to do is hit “Publish,” and your store will be live!

Tips for Starting Your Nonprofit’s Ecommerce Shop

Carefully Decide Which Products to Sell

The products you choose to sell in your nonprofit’s online store go beyond just making sales—they reinforce your brand and mission. Walk through each of these key considerations when choosing the products you’ll feature in your online store:

• Relevance to your mission: Choose products that align with your nonprofit’s mission and values. This will reinforce your organization’s identity and resonate with your supporters.
• Your target audience: Who do you want to purchase these products, and what are their preferences and values? Select products that appeal to these supporters and promote them in ways that highlight their value.
• Quality and sustainability: Source high-quality products that positively reflect your organization. Consider sustainable, ethical, and eco-friendly options, as consumers are increasingly concerned with sustainability. In fact, 80% of consumers say they are willing to pay more for sustainable products.
• Costs and profit margins: Evaluate the production and procurement costs of the products—do they offer a reasonable profit margin? This will ensure your online store contributes meaningfully to your fundraising efforts.
• Practicality: Choose products your supporters will use in their everyday lives. This increases the likelihood of repeat purchases and ongoing support.

When you choose the right products, you ensure financial sustainability and help shape your nonprofit’s overall identity. Think of your merchandise as a way to tell your story—this strengthens the emotional connection between your cause and your community. 

Intentionally Price Your Products

Ideally, your prices should be accessible to your target market while still covering costs. Consider each of these factors when pricing your products:

• Fundraising goals: Consider your organization’s fundraising goals and precisely calculate the revenue required from merchandise sales to support your programs and initiatives. Clearly articulate how merchandise sales align with and contribute to your fundraising strategy.
• Transparency: Inform donors how their purchase contributes to your nonprofit’s mission and provide regular updates on how the proceeds make a positive impact.
• Market research: Research the market price range for similar merchandise to understand your target audience’s pricing expectations.
• Feedback from supporters: Collect supporter feedback on pricing to gain valuable insights into their perceived value and willingness to pay.

This thought-out approach to pricing transforms transactions into meaningful contributions, reinforcing financial sustainability and fostering lasting connections with your community.

Promote Your Online Store

Now that your nonprofit online store is up and running, it’s time to promote it to your community! Here are some engaging ways to promote the store:

• Post on social media: Use social media platforms to showcase your products. Engage your audience with impactful visuals, including photos and videos. Re-share user-generated content, like a photo of someone posing in their new t-shirt, to build social proof.
• Feature on your website: Make it as easy as possible for visitors to explore and learn about your merchandise. Add links in prominent places on your site—for example, add a “Shop” button to your header navigation bar.
• Collaborate with influencers: Partner with influencers within and outside the nonprofit sector to extend your reach. Influencers promote your products to their followers, generating more interest.
• Offer time-sensitive promotions: Create promotional campaigns for specific events, holidays, or milestones. For example, you might offer a 15% discount on GivingTuesday. Limited-time offers and exclusive items can drive urgency and boost sales.
• Create compelling content: Develop engaging and shareable content about your online store and the impact of purchases. This could include success stories, behind-the-scenes footage, or interviews with beneficiaries.
• Highlight impact: Emphasize the concrete ways that funds from the online store contribute to your nonprofit’s mission. Supporters will appreciate knowing how their purchases contributed to positive change. 

Promoting your online store drives visibility, increases awareness, and encourages supporters to contribute. Strategic promotion will boost sales and broaden your audience, fostering long-term relationships with current and new supporters. 

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Using online stores for nonprofits will diversify your revenue streams, engage a wider audience, and strengthen your community connections. Launch your online store today to transform your nonprofit’s future and unleash the power of digital impact!

For more fundraising insights, browse our other resources:

• Unlock Success: Your Guide to Peer-to-Peer Fundraising FAQs. Online stores and merchandise sales are a great complement to peer-to-peer fundraising campaigns. Learn more about this fundraising strategy.
• 40 Nonprofit Fundraising Event Ideas Communities Will Love. Want to pair your merch and product sales with a fun event? Explore these ideas to support your sales.
• 30 of the Most Profitable Fundraising Ideas for Teams. If you’re fundraising for a team, look no further than this list of engaging ideas, including a t-shirt fundraiser!

Written by: Hayden Ireland / Content Specialist
Illustrated by: Madison Summers / Lead Marketing Designer