# Merchandise as a New Revenue Stream: A Practical Guide to Selling Things Members Love > Families who love your centre often want a way to show it. A small, well-designed merchandise shop gives them one, and adds earned revenue grants cannot take away. Published: 2026-10-17 Author: Julian (OpenCommunity Team) ## Key takeaways - Merchandise gives families who already support your centre a second way to do it, and something they will use and be seen with. - Design is what sells. A simple, good-looking tote or mug outsells a busy logo on a cheap T-shirt. - A merchandise sale is a purchase, not a gift, so record it separately from donations and do not issue a tax receipt for it. ## 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](https://opencommunity.ca/blog/membership-renewal-audit-community-centre/index.md) 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. **Start with two or three items.** A tote bag and one shirt design is plenty for a first run. 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. **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. **Say where the money goes.** A small card or sign that says proceeds support your programs reminds buyers why they are buying. 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](https://opencommunity.ca/blog/split-receipting-advantage-explained/index.md) 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. > Note: This article is general information only and is not legal, financial, or professional advice. For questions about your organization's obligations, consult a qualified professional or the relevant government resource (for example, the CRA for registered charity matters, or your provincial or territorial registry for nonprofit governance). ## 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](https://opencommunity.ca/blog/tablet-donations-community-event-tax-receipts/index.md) shows how this works at a busy outdoor event. ## Questions and answers ### Is selling merchandise a good way for a nonprofit to raise money? It can be a useful addition to memberships, fees, and donations, especially for organizations with a loyal community. It works best with a small range of well-designed, useful items and low upfront stock. ### Can we issue a tax receipt for merchandise purchases? Generally no. A merchandise purchase is not a gift, because the buyer receives an item of value. If an item is deliberately priced well above its value, a registered charity may be able to receipt the difference under split receipting rules, decided in advance. ### What is earned revenue for a nonprofit? Earned revenue is income a nonprofit generates through its own activities, such as membership fees, program fees, and merchandise sales, rather than through grants or donations. It helps diversify revenue when grant funding is less predictable. ### What merchandise sells best for community organizations? Everyday items tend to sell best: tote bags, mugs, water bottles, and children's shirts. Simple, attractive designs without dates or event names keep selling for longer. ### How do we avoid leftover stock? Start with two or three items, take pre-orders for anything that comes in sizes, and reorder based on what actually sells. ### Do nonprofits charge sales tax on merchandise? It depends on your organization's status and sales volume. GST/HST and BC PST rules can apply to merchandise sales, so confirm with a bookkeeper or accountant before setting prices. ## More from OpenCommunity - [All resources](https://opencommunity.ca/blog/index.md): Browse every published guide. - [OpenCommunity features](https://opencommunity.ca/features/index.md): Explore the platform.