GOODWILL INDUSTRIES OF MIDDLE TENNESSEE, INC. 2011 ANNUAL REPORT
Finding purpose. Building potential.
Goodwill’s business is built upon the idea of potential. Whether the potential still left in the items donated to us by our generous communities or the potential residing in the people we are privileged to serve, it is our business to bring the potential to light. Though the original owners of the many pieces of clothing and household goods given to us may no longer have a use for those items, for us, the items’ value is renewed, and the donation is filled with potential. That potential leads to sales in our stores. Those sales give the opportunity to change someone’s life for the better. The people Goodwill serves are filled with potential, too. And while that potential may be buried beneath failures and frustrations before coming to Goodwill, we are determined to help bring their potential to light. Whether in one of our training programs in computer literacy, document imaging, healthcare, security guard, forklift training or janitorial services, potential can be realized. We make sure every person who participates in our programs has the opportunity to recognize and realize their potential to be successful in the world of work. In the following pages, you will see numbers that reflect our results for 2011. However, we are particularly pleased to share the stories of some people who have discovered their potential through Goodwill. Both the numbers and the people convey our gratitude to you for your interest in what we do, your donations of still useable clothing and household goods, your shopping in our stores and hiring our graduates. You enable us to reach our potential.
David Lifsey
Robert E. McNeilly, III
President and CEO Goodwill Industries of Middle Tennessee, Inc.
Chairman of the Board Goodwill Industries of Middle Tennessee, Inc.
Seeing the potential . You have treasures in your home. But they’re not what you’re thinking. These are items you’ve probably forgotten about and no longer have a use for. You should give them to Goodwill. In your closet, that old vase is just taking up space. But on the shelf at Goodwill, it has the potential to be the per fect complement to someone else’s home. Give it to Goodwill and we help create purpose. With the revenue generated from selling donated items, Goodwill provides employment and training programs to those who have disabilities and others who have trouble finding and keeping jobs. We ser ved more than 13,000 people last year, and seventy-seven percent of our program par ticipants find work outside of Goodwill. You’re about to meet three of those people. Today, they are finding purpose and building potential.
FINDING PURPOSE . BUILDING POTENTIAL .
That unused desk is just gathering dust, but when donated, it becomes a place of new productivity. Realized potential means new purpose.
When someone donates an unused desk to Goodwill and it’s sold in one of Goodwill’s retail stores, it finds a new purpose with the person purchasing it. At the same time, that sale will help someone overcome obstacles preventing him or her from finding a job. Many job searches are cut short because of a lack of basic computer skills. For Rhonda, learning Microsoft® Excel landed her a new job—a job that would have been out of reach, had it not been for the digital literacy training she received at Goodwill. The skills to compete.
Goodwill’s Digital Literacy program is opening doors for people every day. For those who don’t know how to send an email, the prospects of getting a job in a world that relies on technology is almost impossible. With just a few weeks of training at one of Goodwill’s 19 Career Solutions centers, people with no computer experience are able to send emails, create a resume, search online for jobs and more. These are the skills needed to find jobs, and this knowledge is required for many businesses to even consider a potential candidate. For those who are looking for more advanced skills, Goodwill’s Microsoft Office Specialist (MOS) Certification program teaches students how to use Outlook, Word, Excel and PowerPoint. When this course is completed, the participants receive their MOS Certification that can help someone qualify for a job or advance in a current job. An unused desk—unproductive but full of potential. Donated, it can be productive again. Directly, it can help unlock the potential in someone who needs a job.
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GOODWILL INDUSTRIES OF MIDDLE TENNESSEE , INC. 2011 ANNUAL REPORT
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Overcoming Obstacles. For Rhonda, overcoming obstacles is nothing new. She’s been doing it most of her life. But now and then, she needs a helping hand. Last year, the obstacle was a serious illness. She hadn’t been at her job long enough to qualify for medical leave, but needed life-saving surgery. And, just three days before Christmas, she found herself without a job. Her next obstacle was trying to find a new job. She was going to interviews, but was not getting any job offers. Rhonda was constantly asked if she was familiar with Microsoft ® Excel. She wasn’t. But with a little help, she could be. During her job search, Rhonda spotted the Goodwill Career Solutions sign across the street that read, “Need a job? We can help.” She enrolled in a Digital Literacy class. Three days after completing the course, she got a call from a company—where she had already interviewed and been turned down. “When I told the district manager that I had taken the Microsoft ® class, it stopped him in his tracks. He gave me the job.”
FINDING PURPOSE . BUILDING POTENTIAL .
This cup wasn’t made for an attic. When donated, it fills someone’s life with opportunity.
Filled with opportunity.
An empty cup in a box provides no benefit. But when donated and sold in one of Goodwill’s stores, it has the potential to be filled and to provide comfort to its new owner. Likewise, Goodwill is able to match skilled people with jobs where they can do what they were meant to do—provide care to others. For Vivian, helping people is natural. But to fulfill that purpose, she needed job training provided by Goodwill Career Solutions. Not only does she now have a job, but she has a rewarding career she is passionate about. Putting training into action.
The Health Care Initiatives program provides free training from certified health care professionals. Students receive First Aid and CPR certifications. Graduates leave with knowledge of medical terminology, concepts and other skills needed for entry-level jobs in the health care industry. Time is spent in the classroom, teaching students about the industry, job opportunities and information about advancement. Graduates are also introduced to health care providers in our community and the surrounding region—giving them the skills and contacts to find a job in the health care industry. An unwanted cup may seem empty. But when repurposed, it helps provide training for a fulfilling new career.
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GOODWILL INDUSTRIES OF MIDDLE TENNESSEE , INC. 2011 ANNUAL REPORT
Building Bridges. Life was good for Vivian. She and her husband were successful in business. She had it all. But after a divorce, she was left with nothing but questions. “I found myself—a privileged person—with nothing,” she recalls. “I didn’t know what to do.” After two years of applying for jobs, Vivian found Goodwill Career Solutions. Her career counselor saw her nurturing spirit and directed her toward the Health Care Initiatives program. Today, Vivian provides care—and a whole lot of love—to her two clients. “No one gave me anything. They just gave me a way,” she says through joyful tears. “It’s not just about having a job. It’s about being able to do something that matters. I didn’t know how I was going to be ok. Now I have my own apartment, my own car and no one pays my bills but me. “It’s not a lot. But it’s dignity.”
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FINDING PURPOSE . BUILDING POTENTIAL .
Life is like a picture frame. Put something in and you create something wonderful.
Picture perfect potential.
It’s not just an empty picture frame. It’s potential. With it, Goodwill gives someone the opportunity to fill that frame with loved ones or their favorite memories. And our job training programs do something very similar. Goodwill fills people with the opportunity to turn their lives into something new…something great. For Jesus, that training was Goodwill’s Forklift Operation Certification program. He learned the basics of forklift operation, maintenance and safety. But more importantly, he learned a new skill that he now uses to provide for his family and to build a future. Hands on. Job ready.
Participants in the Forklift Operation Certification Program are trained on safety, maintenance, standard operating procedures, forklift parts, refueling and recharging. But they don’t just learn from books and manuals. They spend time behind the controls, led by a hands-on certified trainer. And by completion, they are ready for a forklift operator position in warehousing or manufacturing industries. They leave the program with things they didn’t have before—knowledge, skills, certification, and confidence—things that Goodwill helped develop in them. And they put those things to use with a renewed purpose. Just like that empty picture frame, Goodwill fills our clients with what they need to unlock their potential.
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GOODWILL INDUSTRIES OF MIDDLE TENNESSEE , INC. 2011 ANNUAL REPORT
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Finding Satisfaction. Life is hard enough as it is. But life with depression can seem impossible. Jesus was at a low point when he arrived in Nashville from New York City. He couldn’t find a job. But worse, he couldn’t read or write. As his problems stacked up, he felt less and less able to handle the burden. Things couldn’t get much worse, so they actually started to get better. He got a job at a Goodwill Donation Express Center. From there, his career counselor recommended Jesus for Goodwill’s Forklift Operation Certification. “She was like a mom to me,” Jesus says of his career counselor with a broad smile. “She took care of me.” Jesus had never touched a forklift in his life. Now he’s the #2 driver for the company he works for. He and his wife recently bought their first home and they’re planning a vacation to New York City. With depression in the rearview mirror, Jesus is working hard and making plans for a long career and retirement down the road. Most importantly, he’s doing it all with a big smile on his face.
FINDING PURPOSE . BUILDING POTENTIAL .
STATEMENT OF FINANCIAL POSITION
December 31, 2011 2011 2010 2009 2008 2007
ASSETS
Current Assets: Operating Cash $ 879,211 $ 449,288 $ 869,292 $ 861,851 $ 819,751 Operating Reserves 6,414,024 3,603,423 6,319,410 2,716,636 1,484,549 Accounts Receivable 721,790 635,687 531,184 435,035 481,719 Inventories 1,715,418 1,471,363 1,415,373 1,126,247 1,011,936 Prepaid Expenses 199,991 368,102 387,814 252,135 288,558 Total Current Assets
9,930,434
6,527,863 9,523,073 5,391,904 4,086,513
Non-Current Assets: Designated Investments 3,381,568 2,981,758 2,596,445 Land, Building and Equipment Net of Depreciation 27,423,242 24,605,603 21,603,389 Other Non-Current Assets 770,642 644,975 516,053
2,128,411
2,144,295
18,555,931 350,049
18,681,520 448,137
Total Non-Current Assets 31,575,452 28,232,336 24,715,887 21,034,391 21,273,952
Total Assets
$ 41,505,886
$ 34,760,199
$ 34,238,960
$ 26,426,295
$ 25,360,465
LIABILITIES AND NET ASSETS Current Liabilities: Accounts Payable $ 230,062 $ 214,385 $ 123,963 $ Accrued Payroll and Employee Benefits 2,548,216 2,091,699 2,204,611 Accrued Sales Tax 177,338 135,879 127,094 Current Portion of Long-Term Debt 932,581 829,098 1,226,841 Other Current Liabilities 620,614 648,763 544,870 Total Current Liabilities
4,508,811
183,161 $ 2,310,913 131,108 833,954 474,621
178,817 2,013,647 117,843 795,569 506,898
3,919,824 4,227,379 3,933,757 3,612,774
Long-Term Liabilities: Other Non-Current Liabilities 1,387,847 1,280,198 536,816 Long-Term Debt 6,213,418 5,991,596 8,808,082
290,279 5,322,301
382,392 6,144,669
Total Long-Term Liabilities 7,601,265 7,271,794 9,344,898 5,612,580 6,527,061
Total Liabilities 12,110,076 11,191,618 13,572,277 9,546,337 10,139,835
Net Assets: Board Designated 3,156,568 Other Unrestricted 25,993,938 Temporarily Restricted 245,304 Total net assets
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Total Liabilities and Net Assets
2,981,758 20,576,858 9,965
2,596,445 18,062,080 8,158
2,128,411 14,746,547 5,000
2,144,295 13,076,335 0
29,395,810 23,568,581 20,666,683 16,879,958 15,220,630
$ 41,505,886
$ 34,760,199
$ 34,238,960
$ 26,426,295
$ 25,360,465
GOODWILL INDUSTRIES OF MIDDLE TENNESSEE , INC. 2011 ANNUAL REPORT
FINANCIAL INFORMATION
Operating Fund and Five-Year Financial Summary 2011 2010 2009 2008 2007
GROUPED REVENUE
Sales Program $ 56,595,870 $ 49,399,294 $ 45,502,096 $ 41,008,826 $ 36,995,210 Career Solutions 759,875 334,402 320,922 253,493 240,567 Commercial Services 0 1,650 46,680 203,979 343,572 United Way Support and Other Contributions 279,889 156,489 69,238 96,099 230,498 Investment Income 149,277 130,082 117,448 73,874 121,596 Market Value Increase (decrease) of Investments (74,918) 151,401 214,795 (287,110) 89,572 Other 49,968 108,940 121,348 128,225 139,965
Total Revenue
$ 57,759,961
$ 50,282,258
$ 46,392,527
$ 41,477,386 $38,160,980
GROUPED EXPENSES Sales Program $ 42,011,157 $ 38,056,339 $ 34,859,833 $ 32,260,178 $ 29,385,201 Career Solutions 4,685,396 3,445,393 2,923,032 2,706,009 2,260,753 Commercial Services 0 488 55,260 247,498 352,621 General and Administrative 5,471,518 4,980,812 4,770,835 4,609,373 4,254,933 Extraordinary item - Flood Loss 0 899,135 0 0 0
Total Expenses $52,168,071 $ 47,382,167 $ 42,608,960 $ 39,823,058 $ 36,253,508
Summary Statement of Revenue and Expenses REVENUE SOURCES
2011 Amount
Sales of goods contributed by the community $ 56,595,870 Fees and grants for professional rehabilitation services 759,875 United Way support and other contributions 279,889 Investment income 149,277 Market value increase (decrease) of investments (74,918) Other 49,968
Total Revenue
DIRECT EXPENSES
98.0% 1.3% 0.5% 0.2% -0.1% 0.1%
57,759,961 100.0%
2011 Amount
% of Total
Sales Program $ Career Solutions General and Administrative
42,011,157 4,685,396 5,471,518
80.5% 9.0% 10.5%
52,168,071
100.0%
Total Expenses
Audited financial statements for 2011 and 2010 are available upon request.
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$
% of Total
$
FINDING PURPOSE . BUILDING POTENTIAL .
PEOPLE SERVED IN 2011
Mission Services
Clients Served by Barrier to employment
Participants 13,160
Primary Barrier to Employment
Assessments 26,047
Blindness or other visual impairment
94
Job Readiness Training
Deafness or other hearing impairment
63
Work skills training
13,580 5,326
Other physical disability
327
Neurological disability
181
Learning disability
340
History of substance abuse
136
Psychiatric and/or emotional disability
569
Developmental disability
160
Demographic Information
Other disabling conditions
372
People Served by Gender
Other Barrier to Employment
Female 7,255
Unemployed/dislocated workers
Male 5,905
Working poor/Incumbent workers/underemployed
Goodwill on the job training
790
Job Placement help
11,577
Retention services
3,022
Welfare recipients
46 1,213
People Served by Race
At-risk youth
White 6,201
Ex-offenders 4,154
Black/African American
Older workers
6,057
180 427
American Indian/Eskimo/Aleut/Native American
55
Homeless 990
Asian/Pacific Islander
68
Non-English speaking/English second language
361
Other (includes multi-racial) race
456
Lack of literacy
294
Unknown or unreported
323
Lack of GED/high school equivalency
People Served of Hispanic Origin
661
People Served by Age 15 and under
55
16-24 2,742 25-34 3,317 35-44 2,563 45-54 2,836 55 and over Unknown or unreported
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9,887
1,639 8
2,162
Other disadvantages
0
Unknown or unreported barrier
0
GOODWILL INDUSTRIES OF MIDDLE TENNESSEE , INC. 2011 ANNUAL REPORT
GLOSSARY OF TERMS
Assessments: Counselors help clients determine skills and aptitudes they have for successful employment.
Career Solutions: Provides assessments, job readiness training and one-on-one counseling to anyone who needs help finding a job.
Digital Literacy Program: Teaches participants basic computer skills, allowing them to create a resume and search for jobs.
Forklift Operation Certification: Regardless of experience, this program makes participants job-ready.
Goodwill On-the-Job Training: Goodwill counselors and staff teach clients to perform basic job-related tasks while the client earns a paycheck.
Health Care Initiatives: Overview course covering many health care careers including basic medical care skills and relevant terminology.
Job Placement Help: Counselors help clients find work at Goodwill or other communitybased employers.
Job Readiness Training: Instructors teach clients skills including how to fill out an application and job inteview tips.
Microsoft Office Specialist Certification: in-depth training in Microsoft’s vital business software suite.
Participants: People who are provided information for a potential path in employment or job training.
Retention: Counselors provide support to clients after the clients are hired.
Work Skills Training: Specific training programs and certifications Goodwill offers such as forklift, computer, security guard and customer service.
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FINDING PURPOSE . BUILDING POTENTIAL .
BOARD OF DIRECTORS AND OFFICERS
Chairman
Robert McNeilly, III President and CEO SunTrust Bank Vice Chairman
Donna B. Yurdin
Owner Credo Management Consulting Secretary
Christopher S. Dunn
Attorney Waller Lansden Dortch & Davis, PLLC Treasurer
Philip G. Hull
Senior Consultant VACO Resources Legal Counsel Waller Lansden Dortch & Davis, PLLC Attorneys Goodwill Officers
David B. Lifsey
President and CEO Goodwill Industries of Middle Tennessee, Inc.
Tammy B. Glass
Directors
Young Leaders Council Intern
J. B. Baker
Ashley Harrison
Chairman Volunteer Express, Inc.
J. Mike Bishop
Assistant V.P. Pharmacy Services Health Trust Purchasing Group
Trustees
Caroline G. Blackwell
Fred T. McLaughlin
Executive Director Metro Human Relations Commission
Barry A. Callender
Vice President, Client Solutions Global Novations
E. Steele Clayton, IV
Partner Bass, Berry & Sims, PLC
Robert W. Duthie
Founder Duthie Associates, Inc.
John C. Greer
Vice President TennComm, LLC
Jeffrey A. Hoffman
Richelieu America, Ltd.
Vice President Finance Goodwill Industries of Middle Tennessee, Inc.
Decosta E. Jenkins
Betty J. Johnson
R. Craig Laine
Vice President Employment Services Goodwill Industries of Middle Tennessee, Inc.
President and CEO Nashville Electric Service Senior Vice President CB Richard Ellis
Kevin P. McDermott Partner KPMG LLP
Jenny W. Newman
Director of Development Nashville State Community College Foundation
Ty Osman
President Solomon Builders
John W. Stone, III
Partner White & Reasor, PLC
Thomas S. Stumb
President Nashville Bank and Trust
Kathryn I. Thompson
Founder/Director of Research Thompson Research Group
John C. Tishler
Chairman Waller Lansden, Dortch & Davis, PLLC
John Van Mol 12
Assistant Vice President Wells Fargo Bank
Chairman and CEO DVL Public Relations & Advertising
Trustee Chair Branch Manager, Sr. VP Investments Robert W. Baird & Co. Inc.
Robert B. Kennedy
Senior Account Executive Neace Lukens Insurance
James L. Knight
President (Retired) Check Printers, Inc.
Our Mission
We sell donated goods to provide employment and training opportunities for people who have disabilities and others who have trouble finding and keeping jobs.
Goodwill industries of middle tennessee , inc.
1015 Herman Street Nashville, TN 37208 615-742-4151 giveit2goodwill.org goodwillcareersolutions.org onlinegoodwill.com
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www.giveit2goodwill.org