Goodwill Industries International, Inc

Goodwill Industries International, Inc. Annual Report Values Respect Stewardship Ethics Learning Innovation Vision We at Goodwill Industries® be...
Author: Archibald Short
3 downloads 1 Views 579KB Size
Goodwill Industries International, Inc. Annual Report

Values Respect

Stewardship Ethics

Learning

Innovation

Vision

We at Goodwill Industries® believe that every person has the opportunity to achieve his or her fullest potential and participate in and contribute to all aspects of life.

Mission

Goodwill® works to enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity, and helping people in need reach their full potential through learning and the power of work.

DEAR GOODWILL STAKEHOLDERS, This past year marked the 110th anniversary of Goodwill’s founding by Rev. Edgar J. Helms in the south end of Boston. Helms sought to turn used household goods and clothing from wealthy neighborhoods into jobs by hiring people who were poor to repair and sell the items. In turn, they received wages from the revenues generated. Although the social enterprise model has evolved since then, the Goodwill mission remains more relevant than ever. We still believe that work is the mechanism by which people gain dignity as well as financial and personal independence. Goodwill continues to expand internationally, and through this widespread presence, we provide quality services that help people find jobs, thereby strengthening families and communities. In 2012, Goodwill provided services to more than 6.7 million people across the globe and directly helped 216,000 people secure jobs in the United States and Canada. The number of Goodwill employees worldwide now stands at 113,000 strong. These are exciting times for Goodwill, and these achievements reflect our extraordinary work in the areas of mission, brand, business and public policy. In this Annual Report, you will have the opportunity to learn more about these successes and how they translate to the remarkable success stories of the people we serve. I invite you to learn more about how supporting Goodwill helps build stronger communities. Sincerely,

JIM GIBBONS President and CEO Goodwill Industries International, Inc.

TOP 10 ACCOMPLISHMENTS OF 2012

1

Goodwill Served, Placed and Employed More People Than Ever Before Goodwill served more than 6.7 million people in 2012, an increase of 2.5 million over 2011, and provided these individuals with approximately 134 million mission-based services. Because more than 27,000 Goodwill participants and employees earned credentials in 2012, they have the potential to collectively earn $15 billion more in their lifetimes. Goodwill helped more than 216,000 people gain good jobs to support their families, an increase of more than 14 percent over 2011, and these individuals earned an estimated $3.6 billion in wages. The total number of employees within the Goodwill enterprise grew to more than 113,000; collectively, they earned more than $2.1 billion in wages and benefits.

2

Goodwill Continued Its Expansion Into Virtual Services Virtual career services make Goodwill training and career assistance available to anyone with access to a computer or mobile device.

• GCFLEARNFREE® – Goodwill Industries of Eastern North Carolina (Durham)

provides a broad array of education, career, life skills and financial courses via GCFLearnFree.org, which more than 4 million people accessed in 2012. More than 700,000 thousand people accessed the Spanish-language version of the site, GCFaprendelibre.org, during the same period.

• GOODPROSPECTS® – Goodwill Industries International and seven Goodwill

agencies engaged 14,000 people in career navigation and virtual mentoring services via goodprospects.goodwill.org. Those members are in Nashville, TN; Phoenix, AZ; Portland, ME; Roanoke, VA; Santa Cruz, CA; Shreveport, LA; and Springfield, IL.

• FIRST-EVER VIRTUAL CAREER FAIR – Goodwill

Industries International launched its first-ever virtual career fair in partnership with Monster.com to commemorate Goodwill Industries Week in May 2012. This online event connected nearly 8,000 people with employers such as Hyatt, Deloitte and Cintas. The virtual career fair was coordinated with on-the-ground career fairs at local Goodwill agencies across North America, which connected more than 10,000 people with immediate job opportunities offered by nearly 650 employers.

3

Donated Goods Retail Saw Record Growth Revenue from Goodwill’s donated goods retail efforts saw 15 percent growth over 2012, a first in more than 15 years, with a total of $3.5 billion. Goodwill put 82 percent of its revenue directly into mission services to help more people gain and maintain employment. The Goodwill enterprise collectively opened more than 200 new stores, with a net gain of around 130 stores, bringing the total number of stores to nearly 2,800 throughout the United States and Canada. Goodwill employs more than 71,000 donated goods retail team members. Easter Seals-Goodwill Northern Rocky Mountain (Great Falls, MT) opened a store in Utah, the first Goodwill store in the state. Same-store sales in 2012 grew an estimated 8.7 percent, while the number of donations grew 4.6 percent. E-commerce revenues increased 34 percent and now account for approximately 3 percent of all donated goods retail revenue.

4

Public/Private Investment in Goodwill Topped $82 Million In 2012, Goodwill Industries International administered 28 grants totaling more than $82 million that helped local Goodwill agencies provide services in 119 communities. Nearly 88 percent of funds were sub-granted to local Goodwill agencies. Goodwill’s combined federal and private grants grew by $4 million, to $609 million.



BEYOND JOBS – Through a $7.7 million investment from the Walmart Foundation, the career services for women initiative expanded to 45 communities across the United States to engage an additional 12,250 women who were unemployed or underemployed in career advancement opportunities.



BUENA VIDA INITIATIVE – The Goizueta Foundation invested in serving 15,121 individuals in Georgia, including 2,744 persons describing themselves as Hispanic. More than 130 partnerships were initiated to convene community solutions for immigrant families.

Individuals across the country have improved their lives through Goodwill’s grant-funded programs. Rachal Underwood is a single mother who wanted a fresh start to support her son. Learn how she did it with the help of Beyond Jobs. View the video at bit.ly/GWUnderwood or scan the QR code with your smart phone.



COMMUNITY COLLEGE/CAREER COLLABORATION (C4) – The Lumina Foundation’s investment supported Goodwill in expanding access to post-secondary education and training at community colleges through the C4 initiative. This collaboration facilitates holistic services from Goodwill and community college partners to help people earn market-valued credentials. In 2012, the initiative expanded to 53 partnerships involving 41 Goodwill agencies and serving nearly 5,000 people since launching in 2010, with more than 80 percent completing credentials. More than 2,000 of those credentials were earned in 2012.



GOODASSETS – The Charles Schwab Foundation and Charles Schwab employee volunteers improved the financial well-being of Goodwill employees and program participants through a financial education and coaching program called GoodAssets. The service is supported through a $300,000 grant from the Charles Schwab Foundation.



OPERATION: GOODJOBS – Through the Operation: GoodJobs pilot, funded by the Walmart Foundation, more than 600 veterans and military family members connected with employment, career advancement and financial fitness services. They also connected with other community resources, and employment and career advancement opportunities.



VESTED IN VETERANS – The Bank of America Charitable Foundation invested $500,000 to launch Vested in Veterans, connecting transitioning military service members and veterans with postsecondary credentialing opportunities, employment and Goodwill services to advance their careers.

Maria Hernandez went from a five-year career in the U.S. Navy to helping other veterans make the transition home. Find out how Operation: GoodJobs helped her make the transition. View the video at bit.ly/GWHernandez or scan the QR code with your smart phone.

5

Goodwill Inspired the Public and Increased the Reach of Its Mission Message Goodwill continued to inspire support and better reach those in need of services. In 2012, Forbes named Goodwill one of “America’s 25 Most Inspiring Companies.” The article quoted Terry Barber, chief inspiration officer for Performance Inspired, who said, “Consumers are really appreciative of the Goodwill retail stores and the perceived feel-good value they are bringing to local communities.” Additionally, Goodwill increased its public presence, connecting people with the power their donated goods can have in supporting critical communitybased programs.

• SECURED

GOODWILL SPOKESWOMAN EVETTE RIOS – Correspondent for ABC’s “The Chew,” entertainment expert for Rachael Ray and food editor for Mamiverse.com, Rios joined Goodwill as its bilingual spokesperson and blogger. Rios regularly appears on the “Today Show” and “The Early Show” and is a frequent contributor to “Al Despertar” on Univision.

• PARTNERED WITH GOT YOUR 6 – Goodwill became the national activation partner of Got Your 6, the first initiative that connects the entertainment industry and the nonprofit sector to demonstrate that veterans are both civic assets and leaders.

• ENGAGED ONLINE COMMUNITY – Goodwill increased its presence in

Evette Rios

the public, receiving nearly 39,000 media mentions in print, online and in broadcast media, reaching an estimated 24 billion people. At year-end, Goodwill Industries International had more than 63,000 followers on Facebook and nearly 14,000 followers on Twitter and had launched a Pinterest page. More than 9.1 million people visited www.goodwill.org and locator.goodwill.org, with the most popular pages being those dedicated to finding a job (1.1 million) and goods donation (1.06 million). Traffic to Goodwill Industries International’s mobile website was up more than 382 percent in 2012 (year-to-year), with more than 2.1 million visitors.

CONNECT WITH US GoodwillIntl

goodwillintl

@GoodwillIntl

GoodwillIntl

6

Goodwill’s Cause Partnerships Increased Brand Awareness Goodwill’s brand exposure and in-kind marketing and media reached record levels with the support and co-branding efforts of cause partners. 2012 highlights include:

• THE BON-TON STORES, INC. – Bon-Ton added a holiday donation drive to supple-

ment its twice-annual Goodwill Sale. Throughout the year, shoppers donated a record 8 million pounds of goods through the partnership. Since its inception, the partnership has generated an estimated potential value of more than $200 million in revenue.

• FLW OUTDOORS – Goodwill and FLW Outdoors collaborated to develop the first-ever Forrest L. Wood Sportsmanship and Community Leadership Award. In-kind media exposure for the Goodwill brand totaled $5 million in value since 2009.

• LEVI STRAUSS & CO. – Levi’s partnered with Goodwill to engage its workforce in

giving back to communities through donation drives, volunteering and local grants to Goodwill agencies across North America.

• FRUIT OF THE LOOM – Fruit of the Loom launched a new program that featured

Goodwill’s mission, putting Goodwill’s logo and messaging on 1.8 million product packages sold through 3,400 Walmart locations.

• FAMILY CIRCLE – Continuing its four-year history of support for Goodwill, Family

Circle asked its 19 million readers to donate gently used items to Goodwill. To engage readers online, the partners promoted an online game to educate parents and their kids about donating and featured Goodwill spokesperson Lorie Marrero in the fall back-to-school issue as well as on the Momster blog.

• ONEMAIN FINANCIAL – OneMain invited customers at more than 1,300 banking

locations to donate to Goodwill during its Customer Appreciation Days in May. Co-branded materials and local engagement across North America elevated the Goodwill brand and collection efforts among millions of customers and employees.

Responding to demand within businesses for a more engaged workforce, Goodwill Industries International launched its first national employee donation program with Levi Strauss & Co. Levi’s asked its more than 5,000 employees to donate to Goodwill and calculate the impact of their donations. The company’s employees also volunteered at Goodwill during its annual Community Day. In addition, Levi’s featured Goodwill through an online cause-promotion site called Thunderclap, a platform that allows individuals to pledge their support by enabling their Facebook or Twitter accounts to deliver simultaneous messages for a cause. Together, Levi’s and Goodwill were able to spread Goodwill’s mission to more than 1.2 million people.

7

Goodwill Expanded Holistic Services Goodwill provides holistic services both to its employees and to the people it serves, and in 2012 deepened its commitment to family financial wellness. Goodwill equips individuals and families to build assets, connect to work supports, avoid predatory lending practices and improve their financial capacity.

• 2012 FAMILY STRENGTHENING CENTERS OF EXCELLENCE – Four

Goodwill agencies were designated as Centers of Excellence by Goodwill Industries International and the Annie E. Casey Foundation for implementing outstanding approaches that help strengthen families and improve their financial security. The agencies demonstrated that family financial fitness strategies come in many forms. Winners included Goodwill Industries of Hawaii (Honolulu); Goodwill Industries of KYOWVA Area (Huntington, WV); Goodwill Industries of West Michigan (Muskegon); and Goodwill Industries-Essex Kent Lambton (Sarnia, Ontario), the first designee headquartered outside of the United States.

• EARNED INCOME TAX CREDIT (EITC) – Thirty-three Goodwill member agencies directly provided free tax preparation and promoted the EITC. During the 2012 tax-filing season, Goodwill’s Volunteer Income Tax Assistance sites prepared federal tax returns that helped more than 36,182 workers collectively receive $49,485,360 in refunds.

8

Goodwill Continued to Build Opportunities through Sustainability Through its innovative initiatives and social enterprise, Goodwill diverted more than 2.6 billion pounds of clothing and household goods from landfills in 2012. Additionally, Goodwill built on its value of environmental stewardship and positioned itself to take a leading role among nonprofit organizations by applying the principles of sustainable operations and design.

• THE DELL RECONNECT PROGRAM EXPANDED – Operated by Goodwill

in partnership with Dell, Dell Reconnect expanded to the state of Hawaii, where nearly 1.3 million people on Oahu gained access to free electronics recycling. In total, the program reaches more than 60 million households in the United States and Canada, and has recycled more than 253 million pounds of computers and electronic equipment since its launch in 2004.

• GOODWILL INCREASED EFFORTS TO MAKE OPERATIONS SUSTAINABLE –

More than 500 Goodwill locations are tracking energy usage through an internal energy challenge, with the goal to reduce overall energy consumption, and 18 Goodwill buildings have obtained the Energy Star label. Goodwill has 10 LEEDcertified buildings and 18 additional projects registered with the U.S. Green Building Council.

9

Goodwill Advocated for Legislation on Capitol Hill In 2012, Goodwill continued to inform and educate federal policymakers. In addition to efforts to ensure that key programs are adequately resourced, Goodwill worked closely with House staff and other workforce system stakeholders to prevent several job training programs from being consolidated into a single block grant to states. During its annual Advocacy Day event in April, nearly 200 Goodwill representatives held more than 320 meetings, the most Hill meetings to occur since the event’s inception in 2007. The Goodwill Industries International public policy team increased its social media presence to mobilize grassroots efforts through posting more frequent blogs, creating @GoodwillCapHill on Twitter and holding its first-ever virtual advocacy day.

10

Goodwill Deepened its International Impact In 2012, Goodwill supported its international affiliates as they built capacity and deepened impact in their respective countries. Goodwill Industries International gathered its affiliates from Costa Rica, Mexico, Panama, Trinidad and Tobago, and Venezuela to discuss developing the social enterprise model in the Caribbean and Latin America. The delegations participated in a donated goods retail social enterprise training as well as in intense discussions on the challenges and opportunities of developing Goodwill’s presence. Through funding from the Caterpillar Foundation, Goodwill Industries International provided leadership and training for social enterprise leaders in other nations and shared best practices with its international affiliates to help increase Goodwill’s impact in communities around the world. In 2012, Goodwill Industries of Korea experienced significant growth, in both number of stores and revenue. The organization opened four new retail locations and generated more than $3 million in total revenue.

WINNING THROUGH WORK MEET THE 2012 GRADUATE AND ACHIEVER OF THE YEAR For more than 110 years, Goodwill has been helping people find jobs, support their families and feel the satisfaction that comes from working. Goodwill empowers people through a variety of job training programs, employment placement services and other community-based programs. The 2012 Kenneth Shaw Graduate of the Year and the 2012 Achiever of the Year are two shining examples of the millions of people who look to Goodwill for career services and related support. 2012 KENNETH SHAW GRADUATE OF THE YEAR JOANNA MCVICKER Frederick, MD Visitors to the Frederick Visitor Center may catch sight of Joanna McVicker cheerfully restocking brochures or answering tourists’ questions. They’d never guess that she sustained a traumatic brain injury at the age of four that affects her cognitive functioning to this day. She wasn’t always aware of the resulting delays that caused difficulties in school and the workplace. Only when she was referred to the Acquired Brain Injury program at Goodwill Industries of Monocacy Valley did she learn strategies to be more effective in her work and personal life. There, she learned how to organize her thoughts and work assignments, how to manage stress on the job, and how to communicate with co-workers, among other life skills. When a job became available at the tourism office, a Goodwill job developer knew McVicker would be a perfect fit. After a tour and interview, she landed a job that complements her skills. “For the first time, I feel empowered in my life,” she says.

View the video at bit.ly/GWMcVicker or scan the QR code with your smart phone to hear more of McVicker’s story.

2012 ACHIEVER OF THE YEAR JIM BARNETTE Portland, OR Jim Barnette describes himself the way those around him describe him: happy and successful. He is legally blind and has mild quadriplegia, but he loves music, his girlfriend, and his work. Barnette came to Goodwill Industries of the Columbia Willamette working in the production and contracts department, but after spending time on the production floor of a retail store, he was hooked and asked for a transfer. “I had to try out for two weeks to see if I could handle it. They didn’t tell me ‘no’ just because I’d never done it before,” Barnette says. Today, he has a number of duties, from sorting donations and staffing dressing rooms to stocking shelves and displaying merchandise. He requires very little supervision, and, with this new level of independence, his confidence has soared. “Things are good for me. I have a girlfriend who is perfect for me, I have a job, and I earn money,” says Barnette. “I wish I would have found Goodwill sooner.”

I wish I would have found Goodwill sooner.

View the video at bit.ly/GWBarnette or scan the QR code with your smart phone to hear more of Barnette’s story.

GOODWILL INDUSTRIES INTERNATIONAL, INC. 2012 ANNUAL REPORT CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As of December 31, 2012 (with comparative totals as of December 31, 2011)

TEMPORARILY PERMANENTLY UNRESTRICTED RESTRICTED RESTRICTED

2012 TOTAL

2011 TOTAL

ASSETS Cash and cash equivalents Investments Accounts and notes receivable Pledges receivable Grants receivable Prepaid expenses and other assets Property and equipment TOTAL ASSETS

$1,938,299

$

7,782,092



$



$1,938,299

$2,062,368

7,242,096 1,234,909 16,259,097 9,952,539

901,343





901,343

528,213



932,598



932,598

292,530

2,271,525





2,271,525

3,061,825

392,781





392,781

594,500

8,429,474





8,429,474

8,679,903

$21,715,514

$8,174,694

$1,234,909

$

$

$31,125,117 $25,171,878

LIABILITIES AND NET ASSETS LIABILITIES Accounts payable

$3,628,270

— ­

$3,628,270

$3,984,825

Accrued expenses

1,841,730





1,841,730

1,468,741

393,119





393,119

377,755









29,450

1,600,000





1,600,000

1,700,000

109,635





109,635

111,355

21,883





21,883

21,883

7,594,637 ­—



7,594,637

7,694,009

14,120,877 ­8,174,694 ­1,234,909

23,530,480

17,477,869

Deferred revenue Capital lease obligation Bonds payable Interest rate swap agreement Security deposit TOTAL LIABILITIES NET ASSETS

TOTAL LIABILITIES AND NET ASSETS $21,715,514



$8,174,694

$1,234,909

$31,125,117 $25,171,878

Goodwill Industries International, Inc., (GII) was established in 1902 and incorporated in 1920 to improve the quality of life of people with disabilities and other disadvantages such as welfare dependency, illiteracy or lack of work experience. Each local Goodwill agency is a separate 501(c)(3) corporation. The Goodwill enterprise is composed of GII and members and affiliates in the United States, Canada and 13 other countries worldwide. All Goodwill members and affiliates are independent, community-based nonprofit corporations that provide career services, job training, placement, employment and supportive services for people with disabilities and other disadvantages. Through a member agreement with the local agencies, GII represents the broader enterprise before the federal government and national and international organizations. GII provides Goodwill agencies with various services, including consulting for workforce development, retail, and commercial operations, financial and management information, education and training, public relations, and legislative information.

CONSOLIDATED STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS Year ended December 31, 2012 (with comparative totals for the year ended December 31, 2011)

TEMPORARILY PERMANENTLY UNRESTRICTED RESTRICTED RESTRICTED



2012 TOTAL

2011 TOTAL

REVENUE AND SUPPORT Membership dues Federal awards



$19,097,240

$

16,218,479



$



19,097,240

17,922,153

$16,218,479

$30,424,132

Contributions

2,311,077

Program service fees

2,738,776





2,738,776

2,430,117

Legacies and bequests

443,466





443,466

134,732

Rental

297,239





297,239 297,239

Investment income

113,861

32,609



166,470

126,905

5,701





5,701

12,373

Other income Net assets released from restriction TOTAL REVENUE AND SUPPORT

41,245,839 6,457,652 47,703,491

11,371,967

— —

— 13,683,044 3,044,029

11,404,576



(6,457,652)



4,946,924

52,650,415 54,391,680 —





52,650,415 54,391,680

EXPENSE PROGRAM SERVICES Sponsored programs and grants

22,791,216





22,791,216

32,777,301

Direct services to membership

13,648,595





13,648,595

12,810,872

5,947,774





5,947,774

5,354,413





4,098,640





4,098,640

3,644,262

508,916





508,916

479,458

TOTAL MANAGEMENT AND GENERAL 4,607,556





4,607,556 4,123,720

TOTAL EXPENSE





46,995,141 55,066,306

Support services to membership TOTAL PROGRAM SERVICES

42,387,585

42,387,585 50,942,586

MANAGEMENT AND GENERAL SERVICES General and administrative Resource development

46,995,141

CHANGE IN NET ASSETS FROM OPERATIONS

708,350

4,946,924



5,655,274

(674,626)

NET GAIN ON INVESTMENTS

325,769

10,793

59,055

395,617

72,882

UNREALIZED GAIN/(LOSS) ON INTEREST RATE SWAP AGREEMENT CHANGE IN NET ASSETS NET ASSETS, BEGINNING OF YEAR NET ASSETS, END OF YEAR

1,720 1,035,893 13,085,038 $14,120,877

— 4,957,717 3,216,977 $8,174,694



1,720 (51,186)

59,055 6,052,611 (652,930) 1,175,854 $1,234,909

17,477,869 18,130,799 $23,530,480 $17,477,869

BOARD OF DIRECTORS 2012–2013 CHAIR

PRESIDENT AND CEO

TOMMY A. MOORE First Investors Financial Services, Inc. Houston, TX

JIM GIBBONS Goodwill Industries International, Inc. Rockville, MD

VICE CHAIR Dr. A. Gidget Hopf, CE Goodwill Industries of the Finger Lakes Rochester, NY

TREASURER Jim Hazy Leadership Science, LLC Garden City, NY

SECRETARY Janet McCarthy, CE Goodwill, Serving the People of Southern Los Angeles County Long Beach, CA

BOARD MEMBERS J. Carlos Artola Indar Ventures, LLC Melrose Park, IL Phyllis Bandstra, CE Goodwill Industries of the Conemaugh Valley Johnstown, PA Michelle Belknap, CE Easter Seals-Goodwill Northern Rocky Mountains Great Falls, MT Sue Bohaichuk Alberta Urban Municipalities Association Alberta, Canada Phil Boyce Boyce & Associates Saratoga, CA Diana L. Burley The George Washington University Ashburn, VA

Paul Chapin Goodwill, The Amity Group Hamilton, ON

Dennis Pastrana, CE Goodwill Industries of South Florida Miami, FL

Kathy Crosby, CE Goodwill Industries of Greater Grand Rapids Grandville, MI

Marjory Pizzuti, CE Goodwill Columbus Columbus, OH

Larry DeJarnett The Lamar Group Palm Desert, CA

Michelle Quintyn, CE Goodwill Industries Ontario, Great Lakes London, ON

Dr. Jeffry Golden Creve Coeur, MO

Robert G. Smith, CE Goodwill Industries of Lower South Carolina North Charleston, SC

Brenda Gumbs Perfetti Van Melle USA, Inc. Cincinnati, OH

Lorna Utley, CE Goodwill Industries of Greater Detroit Detroit, MI

Terry Hayes, CE Tacoma Goodwill Industries Tacoma, WA

Jeffrey A. Van Doren Jeffrey Van Doren, PLLC Salem, VA

Larry D. Ishol Deloitte, LLP Arlington, VA

John A. Wickland, III Wickland Corporation Sacramento, CA

Brian Itzkowitz, CE Goodwill Industries of Arkansas Little Rock, AR

Floyd Wilson, Jr. Metro Health Hospital Grand Rapids, MI

Bill J. Kacal Houston, TX

Michael Wirth-Davis Goodwill/Easter Seals Minnesota St. Paul, MN

Michael W. Kempner MWW Group East Rutherford, NJ Jim Martin, CE Goodwill Industries of Lane and South Coast Counties Eugene, OR Donna Miller Grefe & Sidney, PLC Des Moines, IA John Owen, CE Goodwill Industries of South Texas Corpus Christi, TX

EMERITUS DIRECTORS Will A. Courtney Courtney & Courtney Properties Ft. Worth, TX Evelyne Villines Des Moines, IA

15810 Indianola Drive Rockville, Maryland USA 20855 www.goodwill.org