Savers, the parent company of Value Village, has agreed to change certain practices following a lawsuit filed last month by Minnesota Attorney General Lori Swanson.

The thrift store chain, and privately held company, has agreed to overhaul its donation and disclosure practices and pay $1.8 million to six Minnesota nonprofits to settle accusations that the company violated the state’s charities law.

One of those charities, True Friends, cut ties with Savers in November after allowing it to collect donations of clothes and household items in its name for six years. Savers agreed to pay True Friends, and five others, $300,000 each.

Savers agreed to disclose that it is a for-profit company and to compensate charities for non-clothing items such as books or electronics. Savers contracts with charities to use their names, handling solicitations and collection of clothing donations and other items. It often pays the charities by weight, and sells the goods in its 330 stores worldwide.

The arrangement is convenient for donors, who get a tax deduction, as well as for the charities, which get a source of revenue without having to run costly fundraising operations themselves. But Swanson said that Savers misled the public about how much of their donations actually go to charities, and said that the company doesn’t pay charities anything for donations of household goods and other non-clothing items collected in their name.

According to the company, Savers operates 14 stores under the names Savers and Unique Thrift in Minnesota, and last year it paid its Minnesota charitable partners more than $7.5 million.

Savers CEO and Islander, Ken Alterman said Thursday he is pleased the company reached an agreement with the attorney general, although he disagrees with the allegations.

“We are satisfied that the attorney general has resolved her differences with us,” Alterman said in a statement. “We will return to devoting our full energy to serving the best interests of the charities and donors of this state as we have proudly done for the last 25 years.”

In Washington, Savers operates 24 Value Village stores. The Washington Attorney General’s Office can’t confirm or deny investigations, said spokeswoman Alison Dempsey-Hall.