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

He's asking for donations.

Renee Hannans Henry/rhannans@ajc.com (ENLARGE)

Wordsmiths Books owner Zachary Steele is asking customers of the bookstore to donate money.

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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.

Which still could raise questions for those who donate. If the store doesn't survive, what will happen with the money? If not a tax-deductible donation, will invested fans of a for-profit business consider themselves, well, investors — where they assume an emotional stake in future business moves.

Leonardo McClarty, president of the DeKalb Chamber of Commerce, said he sympathized with the woes of Wordsmiths, but he thinks the store's viability will ultimately rest on its books, a tricky proposition in the day of Amazon.com and big-box stores.

"One thing with small businesses is that you have people who go into it with a dream in mind and a vision and they are going to do everything they can to keep it going," McClarty said. "In the end, it will all depend on the business itself."

Last year, a Norcross coffee shop received about $6,000 in donations after a group of customers asked regulars to "tithe" $20 a month to help keep it operating. Northern Star Coffeehouse survived, and owner Keith Shewbert, who took over the struggling business last year, said the coffee enclave is thriving. A famous ice cream shop, Toscanini's in Cambridge, Mass., received tens of thousands of dollars to keep it afloat after years of forgoing state sales taxes.

Steele is hoping to survive until the AJC Decatur Book Festival during Labor Day weekend. The event attracts 50,000 people, many of them prospective book shoppers.

Tuesday, Steele said he was receiving a stream of pledges, but he wouldn't say how many. He said he was considering offering a benefit such as a lifetime membership to the store or gift card for those giving money.

For now, he's hand writing thank-you cards to his donors.

— Staff writer Richard Hallman contributed to this article.