Raise Significant Funds without asking for Money
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Group spins leftovers into gold
Originally printed on Thursday, January 17, 2008
by Annette Kingsbury in the Rochester Eccentric
There were about 5,000 men in the crowd. Jesus said to his disciples, 'Have the people sit in groups of 50.' They did this, and all the people sat down. Jesus took the five loaves and the two fish. He looked up toward heaven and blessed the food. Then he broke the bread and fish and handed them to his disciples to give to the people. Everyone ate all they wanted. What was left over filled 12 baskets.
- Luke 9:12-17
Photo by John Stormzand
Barry Olson is on a mission.
Having successfully built several businesses, one of which sold last year for $80 million, he's now devised a way for charities to raise money without having to beg. Project 12 Baskets accepts donated goods of all sorts and shepherds them through the process of Internet auctions. At the end, the charity receives 70 percent of the proceeds. It's the ultimate in recycling. Take, for example, a Cleveland church that was being demolished. Four English church bells, the church organ, pews, choir robes, even the commercial kitchen appliances were turned over to Project 12 Baskets, also known as P12B. "We actually harvested the bells ourselves," Olson said. "A band of brothers was formed as we brought those bells down." The bells are now awaiting a new home inside P12B's warehouse in Rochester Hills. The warehouse is full of wonderful and surprising items: a bust of Franklin Roosevelt, commercial air conditioners, home furnishings, and more than $10,000 worth of discontinued wire shelving from the Rochester Hills Lowe's store, to name just a few.
Connecting all the dots between buyers, donors and charities and doing it in businesslike fashion is P12B's specialty. Launched last February, it already has distribution sites in four Midwestern states. At least 50 charities have signed on so far, including several locals: the Lutheran High School Association, Lutheran High School Northwest, St. Andrew Catholic Community, Notre Dame Preparatory School and Marist Academy, St. Mark Orthodox Church, St. John Lutheran Church and School, and Kensington Community Church. "Who knew we could turn our excess inventory into cash for charity?" said Michael Smith, Lowe's Rochester Hills store manager. "The beauty of our business is people are willing to donate their time and materials," Olson said. After raising $1,000 in its first quarter, P12B raised $60,000 for charities in its most recent quarter, creating 21 jobs in the process.
"It's been quite a footprint in our first 10 months," said Executive Vice President Rob Grozenski, whose job includes sales and marketing. A Rochester Hills resident, he, Olson and two other partners worked together for years at their previous company. "This is his fourth or fifth idea," Grozenski said, referring to Olson. "He's got a lot of vision. ... I take the vision out there." Olson said he's not afraid to go Dumpster diving. A Dumpster at an estate sale yielded a yo-yo that eventually sold for $635. The whole operation works on proprietary software developed by Olson's son, Ben. Ninety-two percent of everything they receive is sold. What isn't sold and isn't junk is donated to charities such as the Salvation Army.
"Just passing the (collection) plate isn't any fun anymore," Barry Olson said. "I really hope this will be my legacy, of all the things I've done. This is the fourth business I've created, the last three inside of a public corporation. ... It's just the best thing I've done."