Merchandise as a New Revenue Stream: A Practical Guide to Selling Things Members Love

Why community organizations are adding merchandise in 2026

Selling merchandise is a form of earned revenue: income a nonprofit generates itself, rather than receiving it through grants or donations. With grant funding under pressure across BC and Canada in 2026, many community organizations are working on revenue diversification. Memberships and program fees are the obvious places to start. Merchandise is a smaller, often overlooked addition.

It will not replace a grant. What it does is give people a reason to support you that sits alongside donating, and it puts your name on tote bags and water bottles all over the neighbourhood.

Why parents and members buy merchandise from organizations they love

People who have spent a year of Tuesday mornings at your family drop-in feel something for the place. Many of them already donate. Buying a shirt or a mug gives that feeling a shape.

• It is support they can see. A donation is invisible. A tote bag says, every time someone carries it, that this place matters to them.

• It is useful. People are more comfortable spending $25 on something they will use than on a gift they cannot see.

• It is a gift idea. Grandparents, aunts, and friends of families often want to support the centre too, and merchandise is an easy way in.

• It belongs to the community. Children love wearing the shirt from "their" centre. Staff and volunteers do too.

How to design merchandise people actually want to buy

The difference between merchandise that sells and merchandise that sits in a box is almost always the design. People buy things that look good enough to wear on a day when they are not at the centre.

• Keep the design simple. One clean illustration or wordmark beats a logo, a slogan, a date, and a web address crammed onto one shirt.

• Ask your community. A parent who is a designer, a local artist, or a youth art program can create something with real local character. Credit them, and agree in writing on how the design can be used.

• Avoid dates and event names. "Spring Fair 2026" stops selling in July. A design that represents the centre sells for years.

• Choose good blanks. A soft, well-cut shirt or a sturdy canvas tote costs a little more and is the item people reach for again.

• Start with items people use daily. Tote bags, mugs, water bottles, and children's shirts are reliable sellers. Novelty items are riskier.

How to start a merchandise shop without tying up your budget

The main risk with merchandise is money spent on stock that does not sell. Start small and let demand guide the second order.

1. 1

   Start with two or three items. A tote bag and one shirt design is plenty for a first run.

2. 2

   Take pre-orders for sized items. Shirts in the wrong sizes are the most common leftover. Pre-orders tell you exactly what to print.

3. 3

   Price for a clear margin. Add up the cost of each item, including printing, and set a price that leaves a meaningful amount for the centre.

4. 4

   Say where the money goes. A small card or sign that says proceeds support your programs reminds buyers why they are buying.

5. 5

   Sell where people already are. The front desk, a table at your next community event, and your newsletter are all good places to start.

Tax receipts and sales tax for nonprofit merchandise

A merchandise sale is a purchase, not a gift. Someone who buys a $25 tote bag receives something of value, so a straightforward sale is not receiptable, even when every dollar of profit goes to your programs.

If you deliberately sell an item well above its value as a fundraiser, the split receipting rules may let a registered charity receipt the difference. Decide that before the sale and document the item's fair market value. Our guide to split receipting explains how it works.

Sales tax is the other question to settle early. Whether GST/HST and BC PST apply to your merchandise sales depends on your organization's status and sales volume, so check with your bookkeeper or accountant before you set prices.

Why merchandise sales should be recorded with memberships and donations

Merchandise often ends up as its own small system: a cash box at events, a separate card reader, a spreadsheet of who ordered which size. It works until someone has to report on it, or until a parent asks whether their pre-order was paid.

OpenCommunity is a participant, attendance, and program management platform for neighbourhood houses, family resource centres, community hubs, nonprofits, and publicly funded community organizations. It records merchandise sales separately from donations and fees at the moment of payment, at the front desk or at an event table, and attaches each sale to the family's existing record. Your merchandise revenue stays separate for your books, your donation total stays clean for receipting, and you can see who bought what. Our post on running an event with OpenCommunity shows how this works at a busy outdoor event.