thrift shop as part of a nonprofit day care - possible?

Our daycare is in the process of appyling for 501(c)(3) status. We dream of running a thrift shop to help the community and keep the daycare afloat financially. The thrift shop will sell almost 100% donated items and be staffed by at least 80-90% volunteer work.

The problem is that, in the second request for evidence the IRS agent wrote the following:

"6. In response to the issue regarding the operation of the thrift store you requested that the thrift store be classified as a supporting organization under IRC Section 509(a)(3). In order for the thrift store to be classified as a supporting organization under IRC Section 509(a)(3) you must apply for exemption as a separate organization by filing Form 1023, paying the fee, and providing all of the required information in Form 1023.

The thrift store will not be approved as one fo the Child Care's activities."

It would be a huge financial drain to have to run the thrift shop as a separate company - incorportation, separate books and/or 501(c)(3) application. It might be able to afford separate book-keeping if need be.

Are there any cases or rulings or experience of combining a thrift shop that is not seperately incorporated with a daycare or other legitimate charitable organization?
Thank you very much!

[able1]

i don't think so

you cannot engage in such sales and business etc. unless it is approved as the IRS has explained

but also try speaking with similar non-profits in the area; they may have hints, forms or suggestions that could help you along