Minnesota AG criticizes Savers thrift store chain

Published 11:01 am Wednesday, November 26, 2014

ST. PAUL — The international thrift store conglomerate Savers LLC improperly manages and accounts for the donations it solicits in the name of several Minnesota charities, Attorney General Lori Swanson alleged Monday.

Savers uses the charities’ names to solicit clothing and household goods that it sells through its retail stores. The for-profit company operates 15 stores in Minnesota under the names Savers, Unique Thrift and Value Thrift. Altogether it operates 330 thrift stores in the U.S., Canada and Australia. The closest one to Albert Lea is the Savers store on South Broadway in Rochester.

Minnesota charities that get paid for donations Savers solicits include Vietnam Veterans of America, the Lupus Foundation of Minnesota, Courage Kenney Foundation and True Friends.

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But the attorney general’s office said in a statement that Savers mixes its identity with those of the charities and fails to disclose the amount of a donor’s donation that actually goes to the charity versus the amount the company keeps. A donor can claim a tax deduction for the full price that an item of clothing presumably would fetch at a thrift store, but the charity gets only a portion of that, according to Swanson’s office.

The statement also said Savers gives tax receipts to donors for donations of non-clothing household goods such as furniture and electronics, but does not pay the charities for those donations, likely misrepresenting tax laws in the process. Savers gives tax receipts to donors for donations of clothing that’s comingled with clothing intended for other charities, making an accurate accounting impossible, Swanson’s office said.

Seattle-based Savers issued a statement saying it provides “a reliable and essential source of funds” for its nonprofit partners.

“We will continue to work closely with the Attorney General’s Office along with our partners to address any concerns quickly and constructively so that we can focus our efforts on helping communities connect through a shared commitment to the common good,” it said.

Swanson’s office told the charities to take steps to correct the deficiencies and report back within 45 days.