Setting up an Op Shop!
Running an Opportunity
Shop
is becoming a valuable way for charities to raise funds. Clothes and household items are delivered free to the store and then resold.
Remember, however, that Op shops are about people and are a place of purpose.
We suggest setting up a procedure that you would like your store to abide by.
Here are some issues that you should consider
Memorandum of Understanding (MOU)This is a written agreement to clarify how the store will operate. It explains expectations of how the
store will run and where money should be allocated.
Business Operations & Premises
Role of Parish Council - Suppose your Op Shop is run through the Parish. In that case, you will need to recognise that the
Church Wardens and Parish Council are responsible for the shop's operation.
Health & Safety - Accidents are costly to the organisation. Your duty of care is to look after the public and any
staff.
Fixtures and Fittings - Do you need to purchase fittings, or are the fittings needing replacement?
Occupational Health & Safety - You have a legal responsibility for the health & safety of all employees and
volunteers working for us under the OH&S Act 2004 (OHS Act). When engaging volunteers, it is essential that you ensure they
have the appropriate skills, training & supervision to perform the work safely. You must protect the health & safety of both
employees and volunteers under the OHS Act. The best way to manage these obligations is to have clear policies and procedures in place.
Bookkeeping & Accounting for Charities
Goods Not Sold - Not all donations are resaleable, and you should include in your budgeting any uplift of furniture items
and costs associated with disposing of items.Insurance If you are a Parish Op Shop, your insurance should be covered under the Diocese's
insurance policies. Please confirm this. Also, ensure that all injury or property damage incidents are reported, and in cases of the Parish
reported in writing to the Registry and Parish Council. It is a requirement under Occupational
Health and Safety
that records of incidents are kept that result in injury to a person or contribute to psychological injuries such as personal threat or
aggressive behaviour.
Financial Management - With the church, the treasurer or churchwardens are responsible to the parish council for the
financial accounting of the Op Shop's activities - with the banking and accounting for the Op Shop being included in the processes and
accounts of the Parish. The Op Shop should not operate independently with its own ABN (Australian Business number). All Op Shop
documentation should include the Parish ABN. All financial transactions should be handled according to parish requirements, including
GST. (goods and services tax). Second-hand goods are generally exempt from GST. We suggest separating a working bank account from the
typical Parish operating bank account. The auditing of Op Shop activities is to be included in the auditing of parish accounts, which
are reported to the Annual Parish Meeting in February/March each year. Parish Council is responsible for the distribution of funds.
Local Council Requirements - Does your shop need a planning permit? Check with the Planning department of your local
council. Business Zone 1 does not require a license. Still, you may need a permit if you are on church premises, predominantly if you are
zoned residential.
Pricing - It is vital to have a general pricing guide for items. Pricing of most goods sold in the shop should be in
accordance with the prices on the price list.
Controlling Stock - Goods may only be removed from the shop for cleaning, repair or valuation. All goods removed from
the shop must be recorded in the Goods Removed book provided for this purpose, together with the name of the person taking the goods and
the date. When the goods are returned, the note in the book must be amended to indicate "goods returned" with the return date.
Cash-handling and Petty Cash - Competent staff members should only handle cash. During business hours, all currency should
be securely stored. Outside of business hours, money should be stored in a safe. Petty cash generally is $100 and covers
tea, coffee, sugar, milk, biscuits, cleaning products etc. Banking Banking of cash from sales should be carried out and banked every
day. The takings are tallied against the sales record through the register or a daily diary. We suggest a monthly reconciliation and
summary is generated to compare with monthly and annual figures to see how your Op Shop is running financially.
Do you require an Op Shop Solution?
Raising the standard of Financial Management for Not-For-Profits.We are independent specialised bookkeepers set up expressly to
support your Treasurer and Management team to make wise account decisions and focus on what matters.
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