Close Out Sale:

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The decision to close was made after careful consideration by the Board of Directors, who cited several factors that contributed to the decision, including financial challenges, operational limitations, and a changing retail landscape.   

Financial Challenges

• UWG has not been adhering to Generally Accepted Accounting Principles (GAAP), which has led to overstated value on the organization's cash flow Treasure reports.  
• The 990 Tax Filings for years 2018, 2019, 2021, 2022, and 2023 have been filed with incorrect information and material changes that need to be amended immediately.
• UWG ended 2024 with a net loss of approximately $12,000 dollars.  
• The 2019 capital campaign only raised 40% percent of its target.  
• Donors showed a lack of interest in 2024, and UWG is not eligible for grants due to its size and category.  
• There is insufficient funding for educational programs or a higher-traffic location.  

Operational Limitations

• UWG is not engaging meaningfully with its mission of furthering international understanding and serving people of all faiths, nationalities, social status, age, and gender.  
• Modernizing commerce is estimated to cost $60,000-$75,000 dollars.  
• An increase in annual operating expense is estimated to be $55,000 dollars per year for a higher-traffic location, multi-commerce channels, and an educational program.  
• There is a lack of basic operating procedures and financial reporting to ensure the Board is able to fulfill its financial obligations.  

Strategic Outlook

• The fair trade purchasing landscape has changed dramatically, making it possible to purchase fair trade products without the overhead of a storefront.  
• The rise of e-commerce and platforms like Amazon has created significant competition.  
• The COVID-19 pandemic has accelerated the shift toward online shopping.  
• The UWG patron base is aging with very little new generational energy. 

 The store will remain open until February 15, 2025 or while merchandise is still available. 

 The Board of Directors is committed to ensuring a smooth transition for UWG's employee. The organization is working with its staff to provide them with resources and support during this time. 

 The Board of Directors is working with the organization's legal counsel to ensure that all outstanding obligations are met and that any remaining assets are distributed in accordance with the organization's bylaws.   

The Board of Directors hopes that UWG's mission of promoting fair trade and ethical consumerism will continue to be carried out by other organizations and that patrons will consider purchasing from organizations like those below:

• Ten Thousand Villages: https://www.tenthousandvillages.com/ - A global fair trade retailer offering handcrafted gifts, home decor, and personal accessories.
• SERRV International: https://www.serrv.org/ - A non-profit organization that empowers artisans and farmers around the world through fair and ethical trade.
• Taste Full Beans: https://www.tastefullbeans.com/ - A Hickory local shop with fair trade coffee and tea. 

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UWG's mission, as defined in its bylaws, extends beyond simply operating a fair trade store. While the store was a significant part of our efforts, our broader goals included:

• Furthering international understanding by helping North Americans better comprehend the causes of global poverty and injustice.  
• Giving back net earnings to non-profit ministries in the Catawba County, North Carolina area, and to other non-profit ministries and missions around the world.  

Unfortunately, due to financial constraints, we were unable to fully realize these broader aspects of our mission. Despite the store generating revenue, we were not operating with a net profit that would allow us to support other non-profit organizations and initiatives as outlined in our bylaws.  

Furthermore, we lacked the resources to develop educational programs or expand our outreach to effectively promote international understanding and address issues of global poverty and injustice.  

In 2024, we actively sought out potential donors who could help us bridge the financial gap and pursue these broader goals. However, we did not receive the level of support needed to make these initiatives viable. Based on our projections, we would have needed to raise approximately $120,000 dollars in the first quarter of 2025 just to stabilize our financial situation and begin working towards fulfilling those stated purposes in the bylaws.

This lack of financial resources, coupled with the operational challenges outlined in our findings, ultimately hindered our ability to fully meet our mission.

Excerpt from Bylaws:

ARTICLE II
PURPOSES

The purposes for which the corporation is formed are those set forth in Its Articles of Incorporation, as amended from time to time. These purposes are as follows:

The primary purpose of the corporation is to carry out religious, charitable, and educational activities. The specific purposes shall be as follows:

1. To support the worldwide relief and development programs of nonprofit alternative trade organizations through the sale of merchandise, substantially of which is handcrafted by persons of low income.
2. To operate a store in the Catawba County, North Carolina area.
3. To further international understanding by helping North Americans better comprehend the causes of global poverty and injustice.
4. To give back of net earnings to the various non-profit ministries and needs in the Catawba County, North Carolina area, and to other non-profit ministries and missions around the world.
5. To serve people of all faiths, nationalities, social status, age, and gender in the name of Jesus Christ.

In so doing, the corporation will utilize any lawful means which shall further the purposes for which the corporation is organized, will do and perform any such acts as may pertain to and be desirable in the operation of the corporation in pursuit of the purposes above stated and as may be by law per­ mitted, and will engage in any lawful act or activity for which nonprofit corporations may be organized under Chapter SSA of the General Statutes of North Carolina.

The corporation is not formed for pecuniary or financial gain, and no part of the assets, income, or profit of the corporation is distributable to or will enure to the benefit of its directors or officers. No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of any candidate for public office.

There are several resources available online and in your community. You can also visit the Fair Trade Federation website at https://wfto.com/. 

In December, we met with a group called the “Good Neighbors Group” to discuss the organization's state and hear their concerns. One of their proposals was a complete turnover of the Board of Directors. We took this request very seriously and consulted with legal counsel representing Unique World Gift and our own personal legal counsel. Unfortunately, we found that there was no mechanism within the bylaws or otherwise that would allow us to turn over the organization and ensure that the new board would be held accountable for fixing the issues we found, which are key to maintaining a non-profit status. Therefore, we had to take the advice of our legal counsel and proceed with dissolving the organization. As Board of Directors, we are responsible for the state of the organization and meeting its obligations.

 The entity of the nonprofit will be dissolved and we are working with our council to ensure that we are not only closing the store but going through all of the proper procedures in order to dissolve the organization following the bylaws and the laws of North Carolina.   

The Board of Directors called a special board meeting on November 25, 2024, and voted to dissolve Unique World Gift. After meeting with the “Good Neighbors” group, the board voted to pause the plan. After further research and exploration, the board voted on January 13, 2025, to take their attorney's advice and start activities for dissolving once again. Both of these votes were unanimous, with all five board members voting yes to both.   

 All five board members voted unanimously in favor of dissolving Unique World Gift. This decision was made after careful consideration of the organization's financial challenges, operational limitations, and strategic outlook.