A two-alarm blaze gutted a building at Grey Bears, a well-known nonprofit on Chanticleer Avenue in Santa Cruz, and on Monday fire crews were still unsure what ignited it.

The fire happened Sunday afternoon in the thrift shop's repair room, where donated items are patched and polished up before being sold.Damage to the structure was estimated at $200,000 and burned-up inventory was estimated to be worth $150,000.

PHOTOS: Grey Bears blaze in Santa Cruz

"It's a hard hit. A big loss. We lost about half our inventory," Grey Bears Executive Director Tim Brattan said.

Brattan was in good spirits on Monday despite the setback.

"An incredible crew of firefighters contained the blaze to those buildings, which appear to be beyond repair. Thankfully no one was hurt and the adjacent clothing, medical equipment, books, media, and computer electronics buildings were all untouched,"Brattan said.

"We will come out of this stronger than before," he said. "We've been here 41 years. We've been through a lot. We're here for the community. This is just temporary, what lasts are relationships and people who continue to support us."

The local nonprofit prides itself on its Brown Bag Program, which delivers bags of fresh, nutritious groceries to 4,400 elderly residents every week throughout Santa Cruz County.Volunteers glean farm fields and pick fruit during harvests for the Brown Bag Program.

Brattan said Grey Bears has more than 500 dedicated volunteers.

VIDEO: Watch Felix Cortez's live report from Grey Bears

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Fire guts Grey Bears building in Santa Cruz

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