Charities and business

Send to a friend

Send this article to a friend.

On Nov. 20, CBC News reported: “Authentic painting shows up in thrift store donation bin … Painting appraised between $7K to $15K at auction.”

The report went on, “A spokesperson for Value Village said the Lyman painting is not the only big ticket item they’ve seen. … Since nobody has come forward regarding the painting, the company plans to auction it off and donate some of the money to its non-profit partner, the Canadian Diabetes Association.”

A couple of years ago, our family was downsizing, with a variety of furniture and household goods to donate.

I could choose between our local non-profit thrift shops or Value Village. Curious as to what percentage of a Value Village sale goes to the Canadian Diabetes Association, I phoned Value Village and the Canadian Diabetes Association here and in Toronto.

Their replies: “not public information.”

This week, in response to Value Village’s public declaration that it will auction the donated painting, I went to the Value Village website and read:

“Who  owns Value Village? Are you publicly traded? What is your stock symbol?

“We are a privately held company with two primary owners, Tom Ellison, the son of our founder, and a private equity firms Leonard Green & Partners, L.P. (“LGP”) and TPG.

“What percentage of your profits are paid to the nonprofit organizations?

“We do not pay our partners based on our profits, so their income is predictable and not dependent on our sales revenue. We contract with each of our nonprofit partners individually, purchasing goods from them in bulk at an agreed upon rate. The details of those contracts are confidential, but when we negotiate our rates, we assure that the rate we pay them is higher than what they would get selling the goods on the open market or to other resellers. The funds that we pay our nonprofit partners are an unrestricted and reliable source of funding for their local community programs.”

I wonder if the individual who donated the John Lyman oil painting, as well as all other donors, realize that Value Village, a privately held company, contracts with the Canadian Diabetes Association to provide them with a confidential amount not tied to the company’s profits.

I note also that the shopper pays a sales tax at Value Village.

I ask if  the Canadian Diabetes Association would profit more from arranging to “partner” with a provincial non-profit thrift shop.

Penny Allderdice

St. John’s

Organizations: Canadian Diabetes Association, Leonard Green Partners

Geographic location: Value Village, Toronto

  • 1
  • 2
  • 3
  • 4
  • 5

Thanks for voting!

Top of page

Comments

Comments

Recent comments

  • penny allderdice
    December 04, 2013 - 11:55

    Full disclosure by the CDA would certainly help donors to make informed choices. There are other means by which to support the invaluable work of the CDA. "Are you getting gouged at Value Village? | Squawkfox" www.squawkfox.com/2012/11/05/value-village/‎ by Kerry K. TaylorNov 5, 2012 - Items sold at thrift stores like Value Village and Savers may be cheaper ... comments pointing out the price increases on Value Village's .... in childrens clothes, shoes and our books, there's some good news. ... One of the most expensive city in Canada, and North America too. ...... Hello CBC Marketplace?

  • Terry Loder
    December 04, 2013 - 08:36

    Brilliant!!! Thank you for the excellent commentary! I hope the telegram will now take the initiative and further investigate this company and their use of a Charity for Profit. It does not appear that the Canadian Diabetes Association would profit more by arranging to partner with a provincial non profit. As I am sure you are aware, the CDA is a Toronto ON based federal registered charity with branch offices across Canada. No doubt their contract with Value Village is national in scope. Bottom line- without full disclosure of contract details by the CDA the public should be encouraged NOT TO DONATE TO VALUE VILLAGE. its time for social media action!