Goodwill Industries of Kentucky 2014 Annual Report

Page 1

CELEBRATING

MISSION ACROSS KENTUCKY

2014 ANNUAL REPORT


MISSION

VISION We at Goodwill Industries of

Goodwill Industries of Kentucky

Kentucky will be satisfied only

helps people with disabilities

when every person with a

or other disadvantages achieve

disability or other disadvantage

and maintain employment to

in our communities has the

gain a better quality of life.

opportunity to participate in and contribute to all aspects of a productive life.

VALUES Generally, we believe success—a better quality of life—is making the best use of the attributes with which you are endowed for the circumstances of your life. The greatest achievements for people with disabilities or other disadvantages will come through a positive environment that encourages continuous selfimprovement rather than through competition. The only competition we recognize comes from outside the organization. We are a team. We continually strive to make the best use of the talents with which we have been blessed.


Letter from the

Dear friends, We’ve heard it said that if you’re not changing, you’re not growing. It’s often during times of transition—which can sometimes be challenging—that an organization and its people realize their strength and potential. This year, our Goodwill experienced the first change in executive leadership in 30 years, and with it came the opportunity to capitalize on the solid foundation that President Emeritus Roland Blahnik helped establish during his tenure. Much work was done in the last three decades to stabilize and then accelerate the growth of a once nearly-bankrupt organization. It’s remarkable to consider how our Goodwill has rebounded, and our renewed ability to make investments has resulted in a considerable expansion of our service scope. Goodwill Industries of Kentucky now places Kentuckians into thousands of jobs annually with a physical presence in 39 counties and counting, while our workforce development services are available to residents in 103 of Kentucky’s 120 counties. As we look forward, Goodwill is intently focused on finding ways to make an even bigger impact in the lives of the people we serve. There are many factors that affect a person’s ability to find and maintain a job, and Goodwill will dig to the root of those issues and develop plans to lift people out of poverty through the power of work. There have been many changes at Kentucky’s Goodwill since our founding in 1923, but one thing remains the same—our commitment to matching Kentuckians with opportunities that make paychecks possible. We thank you for your past and continued support of our efforts. Warmly,

Amy Luttrell President & CEO

Charles F. Lambert III Chair, Board of Directors

CEO and Chairperson


YEAR IN REVIEW 2014

Goodwill completes upgrade to education, employment center Almost two years after beginning major renovations, Goodwill Industries of Kentucky opened the Goodwill Center for Education and Employment, powered by Chase, in November 2013. The center at 909 East Broadway will serve as a citywide resource for jobs and job training services for people who face barriers to employment. The $1.4 million campaign was marked by a $200,000 gift from the JPMorgan Chase Foundation. The upgraded facility will allow Goodwill to serve 33 percent more people in its Adult Learning Center, increase jobs at the donation and retail center housed there,

Goodwill opens Bowling Green employment services center In November 2013, Goodwill held a grand opening celebration

and expand meeting space for job seekers.

for its Bowling Green Employment Services Center. Located at

“We outgrew our program space a long time ago,” said Dr. Marsha Berry, vice president

renovated donation center and retail store.

for Goodwill’s Louisville-area operations. “We’ve looked forward to this renovation for so many years, and we’re ready to hit the ground running with an increased capacity to serve Louisvillians’ employment needs.”

1806 U.S. Highway 31W Bypass, the facility also houses a newly

The redesigned facility, which previously housed a regional office for Goodwill, includes space for employment counseling, a fullyequipped computer lab for job searches and résumé writing, and job training for individuals and small groups. The center serves Bowling Green and surrounding communities in western Kentucky. “This region is one of the fastest growing and most dynamic parts of our state,” said John Wade, vice president of Goodwill’s western Kentucky operations. “As our region grows, we look forward to connecting more people looking for jobs with employment opportunities.” The site also houses a Goodwill Job Junction, where “light touch” employment services are provided free of charge—including job leads; computer, internet and phone access; résumé development, and other services.


YEAR IN REVIEW 2014

Goodwill board names new CEO Goodwill Industries of Kentucky

Award for Executive Excellence from

welcomed Amy Luttrell as its new

Goodwill Industries International.

Goodwill Cars to Work accelerates placements

“Amy’s accomplishments in Dayton

Having completed its second full

and nationally exhibit her passion for

year of operation in 2014, Goodwill

Goodwill’s mission and dedication

Cars to Work is making strides

president and CEO in June 2014. A native of Lexington, Kentucky, Luttrell began her career with Goodwill in 1979 in Nashville, Tennessee, before taking the helm at Goodwill Industries of the Conemaugh Valley in Johnstown, Pennsylvania. Luttrell most recently led Goodwill Easter Seals Miami Valley in Dayton, Ohio, for 16 years. In 2013, she received the prestigious Kenneth K. King Management

to those we serve,” said Bob Shaw, former board chair and member of search committee. “Her experience, incredible leadership abilities, and recognition as a national leader in Goodwill by her peers will provide a strong platform for our Goodwill’s continued success.”

in connecting Kentuckians with transportation to positively impact their lives. At the conclusion of the 2014 fiscal year, Cars to Work had placed 153 total vehicles with qualified recipients—people with disabilities or other barriers to employment who are referred from a social service or government

Gala for Good raises money for new scholarship fund

alone. Cars to Work participants have the opportunity to purchase

In May 2014, Goodwill held a fundraising gala to honor longtime

affordable, reliable transportation so

President and CEO Roland R. Blahnik upon his retirement after

they can maintain their employment

30 years of service to Kentucky’s Goodwill. The event raised $50,000

and earn a paycheck to support

for the new Roland R. Blahnik Scholarship Fund, established to

themselves and their families. In

help Goodwill employees and program participants pursue higher

addition, vehicles have enabled

education or vocational training to improve their employability.

participants to make medical

A matching gift by Goodwill—allocated by the board of directors—

appointments and participate more

put the total scholarship fund at $100,000. A committee of board

fully in their children’s school and

members is tasked with reviewing applications and selecting up

extracurricular activities.

to three scholarship recipients each year, and the first set will be recognized at Goodwill’s annual awards luncheon in March 2015.

agency—and placed 78 during 2014

Roland R. Blahnik, left, with Jim Gibbons, president and CEO of Goodwill Industries International.


“I had no idea I was walking into my

future.�

celebrating mission


JESSICA Jessica was working happily as a

my own name,” she said. Before working at

cosmetologist until she developed an allergy

Goodwill, Jessica didn’t have health insurance

to chemicals in products required for her

or a retirement plan; now, she has both.

work. At four months pregnant, Jessica found herself unemployed. While shopping for maternity clothes at the Prestonsburg Goodwill, Jessica overheard a cashier mention an open position. Though she thought her pregnancy would make it difficult to land a job, Jessica applied and was hired at Goodwill in May 2008. “They accepted me with open arms,” she said. “I had no idea I was walking into my future.” Jessica thought the job would be temporary, but she was promoted to assistant manager in 2010. “I can’t imagine being anywhere else,” Jessica said. “Goodwill has become part of my blood.”

“Before Goodwill, I was really struggling. Now I don’t have to worry about being able to pay my bills,” she explained. Jessica says that Goodwill has also strengthened her family life. The week before her son Kyler started kindergarten, she was able to take paid time off in order to spend time with him. “As a single mother, I take pride in being the best parent I can be,” she said. “Goodwill is so understanding of my situation and offers such a wonderful support system.” She also believes that working at Goodwill has made her a better person. “I am inspired every single day by the people I work with,” Jessica explained. “I am more accepting of myself and

Job stability has enabled Jessica to buy a

others. Working at Goodwill has completely

vehicle, establish credit, and purchase her first

changed my life.”

home. “I am so proud to have something in

P R E S TO N S B U R G , KY


“I had the skills and knowledge. I just needed a

second chance.�

celebrating mission


TERRY Employment with Goodwill not only

to assistant manager in 2012. After just one

provided stability in Terry’s life, but also

year as an assistant manager, Terry received

the hope and confidence he needed after

another promotion and currently manages

being incarcerated.

a Goodwill store in Louisville.

“I’ve always been a good person,” Terry

Terry hopes to further his career with

said. “I made a wrong decision, and it

Goodwill and continues to set and

changed my life.”

accomplish goals with help from his

In 2011, Terry was referred for enrollment in Reentry by Design, a program of Goodwill Industries of Kentucky that offers employment services to individuals transitioning into the workforce after leaving the justice system. “Before I made my mistake, I had been in management positions,” he said. “I had the skills and knowledge. I just needed a second chance.” After Terry completed the Reentry by Design program, he was hired as a production clerk at Goodwill. Terry quickly proved that he deserved the second chance Goodwill had given him and was promoted

community employment specialist. “I really enjoy being in the store, and I think I could do even better in a different capacity,” said Terry. “I would love the opportunity to continue to grow with Goodwill and mentor others who have had similar experiences.” For Terry, the opportunity to start over was invaluable. “I didn’t want a company to hold my mistake over my head. Goodwill helps people who want to succeed,” he said. “I’m proud that I put myself in a position for Goodwill to see my potential and give me the opportunity to be successful.”

LO U I S V I L L E , KY


“I’m not just selling goods. I’m selling goods with a

purpose.”

celebrating mission


RIK In 1997, Rik was on his way to earning a

In 2013, after a 16-year gap in education,

bachelor’s degree when his father became ill.

Rik decided it was finally time to complete

With 39 credit hours to complete, he stopped

his degree. Utilizing Goodwill’s tuition

attending college to take care of the family

reimbursement program, he received his

business. After years of working in retail, Rik

bachelor’s degree in history from Eastern

decided he was ready for a change. “I had

Kentucky University.

been a manager at other places, but I never had the chance to help others,” he explained. “I had the desire to do something more.”

Currently, Rik is working on his master’s degree and expects to graduate in 2016. Since returning to school, Rik has been

Rik joined Goodwill Industries of Kentucky as

named to the president’s academic

an assistant manager in 2009, and after two

achievement list every semester, was voted

years, he was promoted to floating manager

president of the History Club, and was

for the Lexington-area stores. “Because of

inducted into Phi Alpha Theta, the National

the mission, I know I’m making a difference,”

History Honor Society, all while maintaining

Rik said. “I’m not just selling goods. I’m selling

a 4.0 GPA.

goods with a purpose.”

“Goodwill has given me a sense of

Rik’s supervisor, Debbie, said, “Rik is a team

accomplishment,” Rik said. “The support from

player and is always willing to share his

upper management has been tremendous.

knowledge. He is an excellent trainer and a

Without Goodwill, I probably wouldn’t have

great employee to have on the team.”

completed my degree.”

L E X I N G TO N , KY


“Creating jobs, changing lives. That’s what

I do.”

celebrating mission


MELVIN After completing two tours of duty for the

so I said I would give it a shot,” Melvin said.

United States Army, including serving his

“I studied, and I learned all about disabilities.”

country in the Vietnam War, Melvin began working at Goodwill Industries of Kentucky as a production clerk in Elizabethtown. “I collected donations and gave out tax receipts,” Melvin said. “Everyone seemed to like me. I was very happy.” While Melvin enjoyed his work, he didn’t realize how much opportunity awaited him. When Melvin began working at Goodwill, the organization had only 12 stores in Kentucky; today, there are 64. Goodwill’s expansion in the late 1990s and 2000s resulted in a promotion for Melvin. He was hired as a workforce development secretary for Goodwill’s Job Junction program, and after eight months, he was promoted to employment technician. “I didn’t [initially] meet all of the qualifications to be hired as an employment technician, but our vice president asked me if I could do it,

As an employment technician, Melvin helps job seekers with disabilities or other disadvantages find employment through résumé building, mock interviewing, and job counseling. One of Melvin’s greatest accomplishments is helping a man named Jerry, who is legally blind, find a job in 2014. “He was down on his luck. He didn’t want to be held back on account of his disability,” Melvin explained. “So I asked him if he was being treated fairly. I asked him what skills he had and what he wanted to do. Within a week, I helped him find a full-time job.” To this day, Jerry calls Melvin at least twice per week, and Melvin considers Jerry a lifelong friend. “Creating jobs, changing lives. That’s what I do,” said Melvin. “I’d rather go to work than eat. I’m 69 years old, and I’m still not ready to quit.”

E L I Z A B E T H TOW N , KY


“If it hadn’t been for Goodwill, I wouldn’t have

kept going.”

celebrating mission


CRYSTAL After her divorce, Crystal moved home

“I was told I was lucky to walk,” she said. “But

to Glasgow, leaving everything behind in

after my first surgery, I was angry because I

eastern Kentucky. Without a job or vehicle,

thought I would get the feeling back in my

she accepted a part-time cashier position

hand. I was going to therapy to learn things

in 2009 at Goodwill Industries of Kentucky.

I should normally be able to do.” Eventually,

In 2010, she was promoted to a full-time

Crystal had to relearn how to complete tasks

position, and Crystal now works as a floating

right-handed. “I can do anything that anyone

assistant manager for multiple stores in south

else can do. I just have to find a different way

central Kentucky.

to do it,” she said.

In 2011, Crystal noticed that she kept losing

After an additional surgery and being off work

feeling in her left hand and dropping items at

for more than a month, Crystal was thrilled to

work. She was eventually unable to complete

return. “Most people who have Arnold-Chiara

routine tasks such as tying her shoes,

malformation draw disability checks,” she

polishing her nails, and writing her name.

said. “But I’m not giving up. If I didn’t work, I

Crystal was referred to a neurosurgeon

feel like I would have no purpose.”

who diagnosed her with Arnold-Chiara

Crystal’s job at Goodwill helped give her the

malformation, a structural defect between the

perspective she needed to heal.

brain and spinal cord. The condition causes bags of fluid to flow freely on the brain stem, attacking balance and decreasing sensations in the arms and legs. While there is no cure to date, Crystal underwent surgery in 2012 to relieve pressure and place a shunt to assist with the flow of spinal fluid.

“If it hadn’t been for Goodwill, I wouldn’t have kept going,” she said. “At my job, I interact with all different types of people and see how good I have it. It helps me appreciate life more. God has been good to me.”

G L A S G OW, KY


COMMUNITY IMPACT People served October 1, 2013 – September 30, 2014 2013 2014

Goodwill increased services to Kentuckians in 2014 by

35%

Vocational Evaluation/Assessment

140

115

Employment Services

205

143

Community Employment

392

396

Job Connection

529

360

Bluegrass Scholars

N/A

8

Ticket to Work

1

0

Adult Learning Center

148

125

Job Junction (Elizabethtown)

180

137

Job Junction (Bowling Green)

119

682

Job Placement Partnership

1

0

KentuckianaWorks Power of Work (TANF)

2,641

2,275

Reentry by Design

181

142

Kentucky Youth Career Center

237

302

Council on Prevention & Education: Substances, Inc.

44

17

SummerWorks

5 62

Benefits Analysis

6

SourceAmerica™

60 53

Independent Industries, Inc.

103

71

Goodwill Cars to Work®

97

339

Goodwill Temporary Services, Inc.

1,894

1,816

Information & Service Referrals

7,402

12,786

Work Services

1,021

990

TOTAL SERVICES

15,406

20,821

Assisted Job Placements Employers Served by Programs Volunteer Hours

2,470 612 1,074

2,881 793 1,149

WAGES PAID to People with Disabilities or Other Disadvantages Working at Goodwill

$17,830,432

$17,625,088

2


BY THE NUMBERS 2014 Financial Summary

ASSETS

2013

2014

Cash

$20,376,064 $25,920,693

Short-term investments

$15,519,938

$12,708,369

Accounts receivable

$1,927,029

$836,900

Grants receivable

$395,152

$158,858

Prepaid expenses

$583,056

$833,700

Inventory

$2,190,184 $2,119,998

Property & equipment

$64,936,900

$63,754,869

Other assets

$7,151,964

$12,195,920

TOTAL ASSETS

$113,080,287

$118,529,307

Accounts payable

$400,703

$315,274

Accrued expenses

$4,091,967

$4,161,897

Current maturities of bonds payable

$1,131,313

$1,763,250

Bonds payable, less current maturities

$34,417,509

$32,326,250

Derivative financial instrument

$154,271

$56,556

Other non-current liabilities

$585,813

$826,220

Program Services

TOTAL LIABILITIES

$40,781,576

$39,449,447

Providing Support for Programs $5,661,679

LIABILITIES

NET WORTH Unrestricted net worth

$72,298,711

Total Expenses & Community Reinvestment

$53,875,233 $40,870,634

75.93% 10.52%

Fundraising

$569,235 1.06%

Reinvested into the Community

$6,723,685

$79,079,860

For detailed information about Goodwill’s $53.9 million in revenue, please visit www.goodwillky.org to view our IRS Form 990.

12.49%


2014 BOARD OF DIRECTORS OFFICERS

Amy Luttrell President & CEO Goodwill Industries of Kentucky

Charles F. Lambert III Chairperson Humana Inc.

Emily Ledford Lawrence Second Vice Chairperson The Glenview Trust Co.

Ellie Kerstetter Secretary Ellie Kerstetter, PSC

THANK YOU. Linda Scholle Cowan First Vice Chairperson Attorney

Jeanna L. Jones, CPA Treasurer Strothman & Company

BOARD MEMBERS Roland R. Blahnik, President Emeritus Goodwill Industries of Kentucky

Daniel Hall University of Louisville

Faith P. Mercke, Past Chair AAB Properties, LLC

Robert N. Shaw, Immediate Past Chair Retired, Norton Cancer Institute

Mike Carpenter BB&T

Dwight L. Haygood, Jr. Brown-Forman Corporation

Mark D. Rorer United Parcel Service

Ted Smith Louisville Metro Government

J. Price Foster, Ph.D. University of Louisville

David H. Hinton Venture Resource

Allen D. Rose Jefferson/Sullivan University

Jason C. Groneck GBBN Architects

Jeffrey V. McGowan, CPCU USI Insurance Services, LLC

Ron Santella Hillerich & Bradsby Co.


THANK YOU.


Administrative Office 1325 South Fourth Street Louisville, KY 40208 (502) 272-1700 www.goodwillky.org

2014 Annual Report Writing & Editing:

Heather Hise, Lauren Stahl

Design:

Cari Weller

Printing:

Publishers Printing

Photography:

Patrick Pfister, Pfoto.com

Goodwill Industries of Kentucky is accredited in Vocational Evaluation Services.

An Equal Opportunity Employer M/F/V/D


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