Nonprofit organizations are venturing into commercial activities due to the intense competition for the limited government funds and declining availability of donor funds for third-sector organizations that address social problems. Charity retailing, a popular choice of commercial activity for nonprofit organization, has filled vacant premises in the high streets of the small towns and suburbs of large cities in the United Kingdom. Successful charity retail operation requires distinctive capabilities necessary to manage organizations' resources in commercial environment. Using 60 in-depth elite interviews, we introduce the concept of managerial capabilities for charity retailing. Research propositions and management implications are discussed.