2010 ANNUAL REPORT
CHANGING LIVES
GOODWILL INDUSTRIES OF MIDDLE TENNESSEE, INC.
When do you think of Goodwill? When the closet is full and you want to make space? When the garage sale is over and you don’t want to drag the unsold items back into the house? Or maybe it’s when you need a reasonably priced piece of furniture or pair of jeans and you buy it from Goodwill’s more than 30 Middle and West Tennessee stores? Whether you’re giving it to, or getting it from Goodwill, we’re happy you think of us. We don’t want to change that. We want you to know what you’re doing isn’t about the exchange of goods — it’s about changing lives. So in this year’s annual report we’re sharing four Goodwill stories — stories about how we were able to make a difference thanks to our many Middle and West Tennessee donors and shoppers. Most annual reports are chock-full of numbers. And, yes, you’ll find our numbers here, but Goodwill’s success can’t be measured in Benjamins, Jacksons or Hamiltons. It’s best measured in Daniels, Roberts, Kays and Faiths. You’ll find their stories here. And we hope that through them you’ll have a more poignant sense of the power of Goodwill and your part in changing lives.
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“So what?” It is a simple question to ask, but important to answer. For us, “so what” gets to the heart of why Goodwill exists. In other words, what is the impact of the donations received, sales earned and people served? We are pleased to share with you, through this year’s annual report, our answer to the question of “so what...” You will see that the measure of our business comes in lives changed. And it is in the lives changed that the dollars become important. A donation of a shirt, pair of slacks, dress or blouse may seem small in and of itself, but the generosity of more than a million donors in 2010 allowed us to serve more than 11,000 people through our programs. For most of those Tennesseans their experience with Goodwill came with no strings attached and no out of pocket expenses. Free services. That’s what donations add up to for those who need help in their search for employment. In addition, more than 1,500 people worked for our Goodwill each day as a result of those donated items, and nine out of ten of those employees were unable to find a job through any other means. “Goodwill…So What?” We impact our communities, our neighbors, and our families and friends, by changing lives.
David Lifsey President and CEO, Goodwill Industries of Middle Tennessee, Inc.
You might be under the impression Goodwill only serves the disabled. The truth is it serves you. It’s easy to focus on the more than 11,000 people Goodwill serves every year, helping them overcome all kinds of obstacles to employment – from language barriers to the challenges of a physical or mental disability. But Goodwill also serves the greater good of society by transforming welfare recipients into hard-working taxpayers, shelter guests into homeowners, the under-served into those who work to supply their own needs. Goodwill is a great place to shop as well as a great way to make use of items that might otherwise be destined for the landfill. It’s a place that helps us handle life’s clutter by unloading our closets and garages as well as reduce our tax burden by turning our donations into deductions. And through it all – whether giving to Goodwill or shopping at Goodwill – you can feel good. You can feel good, not because of the bargains you’re receiving, but because you’re part of the bargain in Middle and West Tennessee, partnering with a business that’s changing lives. At Goodwill, we’ve been able to reduce all that we do, our more than 12 programs and classes and our many retail and donation outlets and initiatives, into two simple but powerful words — changing lives.
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Faith Changing Perceptions Faith isn’t your typical Goodwill client. And she’s not your everyday Kroger bakery worker, either. This diminutive dynamo has her master’s degree and once worked as a university guidance counselor. She came to America from the Philippines to be with her husband. Not familiar with how to find work in the U.S., she went to the Goodwill Career Solutions Center in Franklin. Soon she was working in a nearby Kroger. Asked to share samples of bread with customers, the resourceful Faith drew on her childhood experiences to be Kroger’s top bread seller in a four state region. “In the Philippines, we sell hot bread,” says Faith, flashing a grin. “And, when I was young, my Dad would make ice candies and ask us to take them around the neighborhood, walking or on a bike.” Faith convinced Kroger to let her bake up smaller batches of bread so that it was oven-hot when she sold it and, rather than wait for the customers to come to her, she wheeled the bread around the store in a cart. The smell of warm bread and the warmth of Faith’s smile proved a winning combination. It’s earned her more than sales; it made her new friends and gave her a new name. Customers call her their Sunshine Lady.
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Robert Changing Views Spend a little time talking with Robert and you’ll want to see the world the way he does. Robert has seen a lot in his life. Cataracts took his sight from him at the age of seven. He’s lived in a world that is quick to label people with impaired vision as disabled – though he says nothing is farther from the truth. He’s lived through segregation and has seen challenging times, forcing him to move frequently to find work. So how does Robert respond to life’s trials? He sings. “Music is special to me because it expresses my inner being,” says Robert. “And one of my main purposes in singing is to lift up people. Many people are down.” But not Robert. His view of life is inspiringly positive. He doesn’t see it as a burden that both his wife and his 13-year-old son are also legally blind. They are his joy. And while he has worked at Goodwill for the last five years hanging donated clothing, his real life’s work, he says, is to encourage others. Robert has discovered the best way he can help others is to lift their spirits and their attitudes. Simply put, he changes how they see life.
Changing lives is the mission and ultimate outcome of all that we do. But it is more than a mission, it’s a journey that begins with you. Changing lives at Goodwill begins when you change what you’re wearing or want to change the way your house or garage looks. The journey to restoring lives, reclaiming personal dignity — the mountain of things having a job inspires in people — begins when you decide it’s about time to let go of the mountain of things you no longer need, want or use. And you give it to Goodwill. Getting rid of all the clutter is a great feeling in and of itself. But wait until you see what happens next. Transporting, sorting, tagging, hanging, displaying and selling your stuff in one of the 30 Goodwill stores throughout Middle and West Tennessee provides work for more than 343 people. Operating those stores provides work for another 651 people. It also stretches the money earned by the more than three million hardworking people who shop at Goodwill every year. All of this work and retail is ringing up tax dollars to serve the communities where our employees and supporters live. At Goodwill, the revenue generated by store sales is invested in the people we serve. It funds the job training and placement services needed to help them overcome their individual obstacles to employment.
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These programs and services are all offered by Goodwill Career Solutions at more than 16 Career Solution Centers throughout Middle and West Tennessee. At the core of our Career Solutions program were four primary services in 2010. They include career counseling and planning, job search and placement, training and certification programs and transitional employment. A staff of 61 caring and qualified professionals are deeply committed and involved in these service areas. Each of these areas serve as a powerful step in helping people change the situations they find themselves in and navigating the barriers that have separated them too long from their goal of working. Career counseling and planning is all about making people job ready. Goodwill career counselors work one-on-one with people to help them overcome whatever stands in the way of getting a job. Equal parts coach and cheerleader, our counselors help their clients put themselves in the best position to find, get and keep work. Our career counselors help clients search for job leads, create resumes and fill out applications. They teach and hone interview skills, but then go the important extra mile by sharing important information and tips to keeping work once they find it. It’s all about helping clients change how they present themselves, an important step in changing their lives.
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Kay Changing Outlooks There were days when it was all she could do to get out of bed and eat. Severe depression had robbed Kay of her will, her work and much of life’s joy. It seems a sad reward for a woman who worked for years helping people in recovery from alcohol and drug abuse to find housing and a way to reclaim their lives. There was a time when she carried a caseload of 60 people. Now it was all she could do to take care of one person – herself. Even after a year, when she finally worked up the will to look for work, the crowds, chaos and push of the typical job placement center overwhelmed her. Ironically, she found refuge at the same place she once referred her housing clients to – Goodwill. Kay now works for Goodwill’s call center. “Every call that I answer, I help somebody and that’s a good feeling,” says Kay with a laugh. “They call and they don’t think they’re really going to get a job. But I tell them a year and a half ago I was right where they are.” But not anymore. Kay is back, nurturing others and smiling again.
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Now that our clients are properly prepared to step out into the job market, job search and placement services works with them to secure work. This means individualized attention and working with a client’s unique needs and challenges to find just the right work fit. Counselors help access and activate online job searches as well as draw from a host of area companies and business that have a heart and history for working with Goodwill. These are organizations that find real value in hiring the people prepared by Goodwill. Goodwill clients are highly motivated and ambitious individuals – people who want to make more of themselves and contribute to the world around them. Often more advanced work opportunities require more advanced and specialized training. Our training and certification programs serve to help people further the changes in their ability to work. Our forklift certification provides hands-on training and real world practice in operating a forklift. Last year alone, more than 1,018 people benefited from Goodwill forklift training. The importance of serving customers and enhancing the relationships businesses enjoy with their customers has created a growing need for more people trained to manage and work call centers. Our call center program regularly places people in jobs after they’ve completed this eight-to-twelve week course.
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In a business like ours, built upon selling donated goods at its stores, it’s only natural that Goodwill draw upon our expertise to provide retail and customer service training. From entry level to assistant manager training, our training for retail associate certification, or TRAC, shares everything an individual inspired by retail service will need to succeed. From product knowledge to selling tips, basic merchandising to safety and security, handling cash to positioning point-of-sale, the world of retail is carefully explored and explained to our clients. More and more, the working world relies on technology and tech-savvy employees to make their businesses go. Computer training is a must for many and Goodwill is plugged into today’s workplace. Beyond basic computer skills, Goodwill also offers a Microsoft Office Specialist program that makes clients even more attractive to prospective employers. Thanks to a grant provided by the Department of Labor, computers are available at all of our Career Solutions Centers and our staff is specially trained to ensure everyone who comes to Career Solutions for help has the good fortune to use a computer in their job search. The safety and security fields continue to grow and so Career Solutions has helped clients grow into these jobs with the proper training. Our security guard certification prepares future security workers by securing their background checks.
Those who master this certification earn a license issued by the Department of Commerce and Insurance as an Unarmed Security Officer. Finally, at Goodwill, we want everyone who truly wants to work to be able to do so. Helping to serve this desire is our transitional employment services. These services are designed for people with documented physical, mental or emotional disabilities, that often require more time and attention in finding them a good fit for employment. The program provides participants with up to six months of employment at one of Goodwill’s stores, Donation Express Centers or in one of the production departments that ready our products for sale. From donations to retail to training, advanced certifications to transitional work, Goodwill is changing people’s outlook, work habits, skill sets, means to find work and the will to keep working — all to change the way they live and enjoy their lives. At Goodwill, our business is changing lives. Donate, shop, or come to us to find a job. Find a way you can be a part of the Goodwill story. It’s life changing.
PEOPLE SERVED IN 2010
Mission Services
Clients served by barrier to employment
Participants 11,200 Assessments 1,026 Job Readiness Training 9,895 Work Skills Training 1,633 Goodwill On the job Training 993 Job Placement Help 9,895 Retention Services 2,915
Primary Barrier to Employment:
demographic information People Served by Gender: Female 4,976 Male 6,224 People Served by Race: White 6,281 Black/African American 4,592 American Indian/Eskimo/Aleut/Native American 49 Asian/Pacific Islander 116 Other 115 Unknown or unreported 47 People Served of Hispanic Origin 444
Blindness or other visual impairment Deafness or other hearing impairment Other physical disability Neurological disability Learning disability History of substance abuse Psychiatric and/or emotional disability Developmental disability Other disabling condition
50 43 254 126 194 106 308 93 123
Other Barriers to Employment: Unemployed/Dislocated worker 4,374 Working poor/Incumbent worker/Underemployed 54 Welfare recipient 1,007 At-risk youth 83 Ex-offenders 2,780 Older worker 185 Homeless 273 Non-English speaking/English second language 260 Lack of literacy 67 Lack of GED/high school equivalency 820 Other disadvantages 0 Unknown or unreported barrier 0
People Served by Age: 15 and under 185 16-24 2,804 25-34 2,567 35-44 2,417 45-54 2,286 55 and over 938 Unknown or unreported 3
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GOODWILL INDUSTRIES OF MIDDLE TENNESSEE, INC.
STATEMENT OF FINANCIAL POSITION at December 31
2010 2009 2008 2007 2006
ASSETS Current Assets Operating Cash $449,288 $869,292 $861,851 $819,751 $632,768 Operating Reserves 3,603,423 6,319,410 2,716,636 1,484,549 2,436,631 Accounts Receivable 635,687 531,184 435,035 481,719 514,502 Inventories 1,471,363 1,415,373 1,126,247 1,011,936 912,549 Prepaid Expenses 368,102 387,814 252,135 288,558 288,797 Total Current Assets
6,527,863 9,523,073 5,391,904 4,086,513 4,785,247
Non-Current Assets Designated Investments 2,981,758 2,596,445 2,128,411 2,144,295 1,650,863 Land, Building and Equipment Net of Depreciation 24,605,603 21,603,389 18,555,931 18,681,520 14,633,147 Other Non-Current Assets 644,975 516,053 350,049 448,137 350,260 Total Non-Current Assets
28,232,336 24,715,887
21,034,391 21,273,952 16,634,270
TOTAL ASSETS $34,760,199 $34,238,960 $26,426,295 $25,360,465 $21,419,517 LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable $214,385 $123,963 $183,161 $178,817 $330,481 Accrued Payroll and Employee Benefits 2,091,699 2,204,611 2,310,913 2,013,647 1,666,211 Accrued Sales Tax 135,879 127,094 131,108 117,843 106,434 Current Portion of Long-Term Debt 829,098 1,226,841 833,954 795,569 511,953 Other Current Liabilities 648,763 544,870 474,621 506,898 454,984 Total Current Liabilities
3,919,824
4,227,379 3,933,757
3,612,774 3,070,063
Long-Term Liabilities Other Non-Current Liabilities 1,280,198 536,816 290,279 382,392 307,594 Long-Term Debt 5,991,596 8,808,082 5,322,301 6,144,669 4,728,702 Total Long-Term Liabilities
7,271,794 9,344,898
TOTAL LIABILITIES
11,191,618 13,572,277 9,546,337 10,139,835 8,106,359
5,612,580
6,527,061 5,036,296
Net Assets Board Designated 2,981,758 2,596,445 2,128,411 2,144,295 1,650,863 Other Unrestricted 20,576,858 18,062,080 14,746,547 13,076,335 11,662,295 Temporarily Restricted 9,965 8,158 5,000 0 0 TOTAL NET ASSETS
23,568,581 20,666,683 16,879,958 15,220,630 13,313,158
TOTAL LIABILITIES AND NET ASSETS $34,760,199 $34,238,960 $26,426,295 $25,360,465 $21,419,517 Audited financial statements for 2010 and 2009 are available upon request.
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2010 ANNUAL REPORT
FINANCIAL INFORMATION
Operating Fund and Five-Year Financial Summary GROUPED REVENUE 2010 2009 2008 2007 2006 Sales Program $49,399,294 $45,502,096 $41,008,826 $36,995,210 $30,375,737 Career Solutions 334,402 320,922 253,493 240,567 259,984 Commercial Services 1,650 46,680 203,979 343,572 543,141 United Way Support and Other Contributions 156,489 69,238 96,099 230,498 449,173 Investment Income 130,082 117,448 73,874 121,596 192,119 Market Value Increase (decrease) of Investments 151,401 214,795 (287,110) 89,572 53,580 Other 108,940 121,348 128,225 139,965 2,977 TOTAL REVENUE $50,282,258 $46,392,527 $41,477,386 $38,160,980 $31,876,711 GROUPED EXPENSES 2010 2009 2008 2007 2006
Sales Program Career Solutions Commercial Services General and Administrative Extraordinary item - Flood Loss
TOTAL EXPENSES
$38,056,339 $34,859,833 $32,260,178 $29,385,201 $23,642,126 3,445,393 2,923,032 2,706,009 2,260,753 1,391,781 488 55,260 247,498 352,621 526,389 4,980,812 4,770,835 4,609,373 4,254,933 3,420,374 899,135 0 0 0 0 $47,382,167 $42,608,960 $39,823,058 $36,253,508 $28,980,670
Summary Statement of Revenue and Expenses REVENUE SOURCES 2010 Amount % of Total Sales of goods contributed by the community Fees and grants for professional rehabilitation services Contract work done for local businesses United Way support and other contributions Investment income Market value increase (decrease) of investments Other
$49,399,294 98.2% 334,402 0.7% 1,650 0.0% 156,489 0.3% 130,082 0.3% 151,401 0.3% 108,940 0.2%
TOTAL REVENUE $50,282,258 100.0% DIRECT EXPENSES 2010 Amount % of Total
Sales program Career Solutions Commercial Services General and administrative Extraordinary item - Flood Loss
$38,056,339 80.3% 3,445,393 7.3% 488 0.0% 4,980,812 10.5% 899,135 1.9%
TOTAL EXPENSES
$47,382,167 100.0%
Audited financial statements for 2010 and 2009 are available upon request.
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BOARD OF DIRECTORS AND OFFICERS
Officers
Trustees
Board of Directors
Chairman
trustee chair
John W. Stone, III Partner, White & Reasor, PLC
Fred T. McLaughlin Branch Manager, Sr. VP Investments, Robert W. Baird & Co., Inc.
J. B. Baker President & CEO, Volunteer Express, Inc.
Philip G. Hull Senior Consultant, VACO Resources
Vice Chairman
Robert B. Kennedy Senior Account Executive, Neace Lukens Insurance
J. Mike Bishop Asst. VP, Pharmacy Services, Health Trust Purchasing Group
Decosta E. Jenkins President & CEO, Nashville Electric Service
Caroline G. Blackwell Director of Multicultural Affairs, University School of Nashville
Ty Osman President, Solomon Builders
Steele Clayton Partner, Bass, Berry & Sims, PLC
Thomas S. Stumb President, Nashville Bank & Trust
David Condra Chairman, Dalcon Enterprises
Kathryn I. Thompson Founder/Director of Research, TRG – Thompson Research Group
Gary W. Cordell Director of Consumer Affairs, State of Tennessee
John Tishler Chairman, Waller, Lansden, Dortch & Davis, LLP
Robert W. Duthie Founder, Duthie Associates, Inc.
George VanAllen President, Nashville State Community College
Deborah Faulkner Inspector General, State of Tennessee – TennCare
John Van Mol CEO, DVL Public Relations and Advertising
John C. Greer Vice President, TennComm, LLC
Sandra L. Wise Campus President, Argosy University
Robert McNeilly, III President and CEO, SunTrust Bank Secretary
Donna B. Yurdin Owner, Credo Management Consulting Treasurer
Kate Gibson Accounting Manager, Vanderbilt University Medical Center Department of Finance Legal Counsel
Christopher S. Dunn Attorney, Waller, Lansden, Dortch & Davis, LLP David Lifsey President and CEO, Goodwill Industries of Middle Tennessee, Inc. Tammy Glass Vice President – Finance, Goodwill Industries of Middle Tennessee, Inc. Betty Johnson Vice President – Employment and Training Services, Goodwill Industries of Middle Tennessee, Inc.
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James L. Knight President (Retired), Check Printers, Inc.
Jeffrey Hoffman Richelieu America, Ltd.
GLOSSARY
Daniel (front cover) Changing Directions
Participants: People who are provided information for a potential path in employment or job training. Assessments: Counselors help clients determine skills and aptitudes they have for successful employment. Job Readiness Training: Instructors teach clients skills including how to fill out an application and job interview tips. Work Skills Training: Specific training programs and certifications Goodwill offers such as forklift, computer, security guard and customer service. Goodwill On-the-Job Training: Goodwill counselors and staff teach clients to perform basic job-related tasks while the client earns a paycheck. Job Placement Help: Couselors help clients find work at Goodwill or other community-based employers. Retention: Counselors provide support to clients after the clients are hired.
Sometimes the door of opportunity seems like it’s barred shut. Literally, for Daniel. After a 32-month stay in prison on a burglary conviction, doors were shut in his face and calls went unanswered as he looked for a job. A lifelong battle with drug abuse had brought him to this place. “No one wanted to mess with a felon who’d just gotten out,” Daniel remembers. “But I had to find something fast.” Daniel had already reached the limit on how long he could stay at a halfway house without a job. So with all the doors closed, he tried a window. Daniel knocked on the window at Goodwill’s Berry Road Career Solutions after hours to try and get someone’s attention. He did. Goodwill career counselor Idalba Tabares noticed him. Two and half years later, Daniel is working, smiling and the proud father of a newborn. He works hard, pulling clothing needed at Goodwill’s stores. Life’s not easy but it’s good. Daniel not only has a new son, he has a new life.
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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