Wordsmiths Books requests donations to remain in business

By HELENA OLIVIERO, DAVID MARKIEWICZ
The Atlanta Journal-Constitution
Published on: 08/06/08

In an effort to save his struggling independent bookstore, owner Zachary Steele is employing an unusual and humbling tactic.

He's asking for donations.
Wordsmiths Books, a for-profit Decatur bookstore, sent an e-mail newsletter Tuesday seeking contributions and placed a "Donate Now" button on its Web site.

Yellow "Help Save Our Bookstore" banners wrapped the glass storefront, and Steele announced plans for a three-day fund-raising event. He will not say how much he is hoping to raise.

"This is me taking my pride and setting it aside for the sake of the business," Steele said Tuesday.

Asking for donations is an unusual but not entirely unprecedented move for a for-profit business. It's legal, but it's not the same as doling out cash to a food pantry. Any donation to an organization without 501(c)(3) nonprofit status is not tax-deductible. And a for-profit business receiving donations would have to deal with the Internal Revenue Service over any related tax consequences of fund-raising.

"This is America, and if people want to give money, they can," said Steve Ring, owner of Taste in downtown Decatur. "I say let this work itself out. But you do have people saying, 'What about Rue de Leon and Square Roots and other Decatur businesses that went out of business? They didn't have fund-raisers.' "

Wordsmiths first opened in grand style a year ago inside the former Decatur post office. It covered 4,000 square feet and boasted marble floors, leather chairs and free coffee.

But the lagging book sales couldn't cover operating costs, and Steele moved the business to the desirable square in March to cut rent and get more foot traffic, he said. And while he said business improved after the move, he still faced mounting debt.

Steele says a big name the store paid for an appearance recently also fell short of expectations — leaving Steele with many books unsold. He declined to name the author.

Steele admits he dreamed big — maybe too big — and "reality can be harsh."

He will not be able to cover this month's operating expenses without help, he said.

The mass e-mail, with the subject line "We Need Your Help," says, "It doesn't matter how small your contribution is ..." and mentions a range of $25 to $200 or "anything at all."

Steele said he will use donations to pay debt.