I managed a charity shop for a well-known and well-supported local charity. Organisations have different rules about how they work and what they will sell. We would only sell items of the highest quality.
We also derived income from rags and paper pulp but what to do with all those chipped plates, cracked glassware, bent cutlery and broken toys? They went in the bin and our collection charges were high.
I'm aware of some charity shops where staff may be helping themselves to donations. Whether this is policy or done without the manager's knowledge I can't say.
Our policy was to allow staff to buy goods at the ticketed prices but only after the items were out on general display so the public had a chance to buy too. My assistant manager and I did all the pricing and were the only ones allowed to take money from staff and the sale was coded as a staff purchase. Head Office kept a watch on all till transactions, analysing the numbers to make operation decisions.
It would have been difficult for volunteers to steal larger items but who's to know they haven't popped a small but potentially valuable item in their pocket or handbag? You have to take people on trust and work on the basis that people volunteering their time are honourable. When I recruited staff the rules were made very clear but there were still a few occasions when I had to let people go.
Each of our shops had an annual sales target and like all sales targets they increased each year. Do well and next year's target would be higher. My last target, in a shop tucked away on a quiet housing estate, was 150K. That's a lot of goods to sell when the average ticket price was around £2-£5.
You get a feel for what's going on in your own shop. What's coming in, what's binned, what's going out, what kinds of goods sell, what doesn't, who your regular customers are, how much money is going through the till. Putting high valuable items on display is a risk. Precious metals and stones were sold via a dealer. We had an eBay operation for other high value items and collectables.
It's like running any other retail business except you have to manage more staff and never know what stock you might have from one week to the next.
It's sometimes assumed that charity shops are amateur operations and maybe for some very small charities they are but the bigger ones are professionally run businesses.