2011 Annual Report

2011 ANNUAL REPORT

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CHANGE

GROWTH

PROFILE: Murphy Ford Murphy Ford initially came to Goodwill in 2004, a quiet and shy man with a speech impediment and other disabilities. Today Murphy is an outstanding Goodwill employee who is beloved by SSA staff. Always in a good mood and willing to help all his coworkers Murphy is an outstanding employee but at one time he would leave work every day in tears unable to cope with criticisms and the challenges of the job.

Murphy rarely left his home and never by himself; he rarely spoke, and was painfully shy around strangers. With time, Murphy slowly began to come out of his shell and use public transportation to establish his independence and go to the movies and the mall by himself.

Witnessing Murphy’s growth has been a pleasure for all to see.

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We are pleased to provide you with an overview of Goodwill Industries of the Chesapeake, Inc.’s accomplishments for 2011, our 92nd year of operation. Clearly, it was a record-breaking year across the entire organization. With many thanks to the communities we serve, our Board of Directors, contributors, shoppers, volunteers, friends, fans, and most importantly, our employees, we provided employment and support services to the greatest number of people with disabilities and other barriers to employment in our history, achieved the highest levels of employee satisfaction, attracted a record number of customers in our stores, and multiplied the donations we received from the public.

In addition to celebrating our best year in our history, it was also a year of change, with the retirement of Marge Thomas, our former President & CEO and now President Emeritus, who leaves an indelible mark on the organization and its success after 17 years and 37 years in the Goodwill movement. The Goodwill Board of Directors named our principal career center in her honor and established the Marge Thomas Scholarship Fund that annually will help clients who complete a Goodwill program acquire added skills through a college program or trade school.

Frances O’Connell Taylor Board Chair

In 2011, we revisited our mission statement and made changes to reflect a more robust charge, defining us as an organization that seeks to help all of those in need of services in our communities become more self-sufficient…an organization that “prepares people to secure and retain employment and build successful independent lives.” Last year, Goodwill staff provided job training, counseling, referral services, and family support services to a record of more than 25,000 individuals, those who, for a variety of reasons—disability, layoff, lack of skills, or other needs—reached out to Goodwill for assistance to navigate support services and reposition themselves for the tough labor market. More than 2,300 gained employment in spite of the difficult economy.

We also opened our 26th retail store. With the support of our 1.7 million shoppers, retail sales increased 6% compared to 2010. We wish to thank our 900,000+ donors, who contributed more than 28.7 million pounds of clothing and other goods to sell in our stores. The proceeds from the sale of these items enabled us to provide services to a record number of individuals with disabilities or other disadvantaging conditions this past year. Further, our vigorous recycling efforts resulted in keeping nearly 14.5 million pounds of goods from going to landfills.

Lisa Rusyniak To help us accomplish our business objectives and provide much needed services, we increased our workforce to 520 full-time and 40 part-time employees. We also continued our employer of choice efforts that included a wellness program that earned the American Heart Association’s Gold Level.

Our efforts to be a great place to work were recognized, as Goodwill was named one of the Top 75 Work Places by the Baltimore Sun.

President/CEO

Looking ahead, we plan to serve even more Maryland residents in 2012, open at least 4 new retail stores and add new services, including a program to help our seniors to gain employment. We are deeply appreciative of your support of our mission and promise you our best efforts, compassion, and courage in our work to better the lives of our fellow citizens in need of employment.

We thank you, valued friend, for your continued support and dedication to Goodwill.

Sincerely, Francis Taylor, Board Chair

Lisa Rusyniak, President/CEO

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WORKFORCE DEVELOPMENT Our workforce development staff is charged with the task of being a client’s first impression of Goodwill.

Many of our clients come to us with little hope and frequently with little to no skills to enter the job market.

For our workforce development staff, this is a time when they must tread lightly so as to encourage but not overwhelm. Our staff takes on the role of advocate, cheerleader, and therapist.

In 2011 the accomplishments of our workforce development were unparalleled. Staff provided services for 25,324 individuals and placed 2,364 individuals into jobs. With the goal of strengthening client retention we began a support group, “job club” for those already working but in need of on-going assistance.

The transitional employment program, which helps those lacking recent work history acquire paid on the job training and experience to build their resumes, had 54 clients successfully complete transitional employment in 2011. Our Frankford store became a retail training site in July 2011, employing eight full time participants. The store exceeded all sales goals after its conversion and ended the year as a financial and mission success.

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The Waverly Family Support Center which provides pre-GED, GED, parenting, and counseling services helped over 150 families and 39 parents gain employment, a record number. The Barbara Bush Foundation grant also allowed for increased literacy training and the addition of a new computer and financial literacy training class.

The STEP program, serves clients with psychiatric disabilities by providing rehabilitation and competitive employment. In 2011, the STEP staff served a record 112 individuals surpassing 2010’s achievements by 19%. The number of people who obtained employment increased to 181, an increase of 15% over 2010.

STEP continues to remain focused on community collaborations, for example the STEP Carroll County office was invited to participate in the Maryland Seamless Transition Collaborative and the Carroll County Transition Council.

The GenesisJobs program operating primarily with use of volunteers, served 345 individuals surpassing their 2011 goal for number of individuals served. Furthermore GenesisJobs added 10 new volunteers.

They also exceeded their placement goal by 72%, helping 86 individuals obtain jobs.

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RETAIL Despite an unpredictable business climate Goodwill’s retail operations continue to thrive which is vital to the strength of the organization since retail operations accounts for 65% of Goodwill’s operating budget.

Goodwill customers not only enjoy great customer and budget friendly shopping they also help financially support our training and employment programs.

Retail sales for 2011 increased 8.4% over 2010 and nearly 1.7 million individuals made purchases. None of which would have been possible without our nearly 900,000 donors and their generous contributions.

The Dell Reconnect Program, our e-cycling business, continued to grow over 705,000 pounds of computers and computer accessories where diverted from landfills.

Goodwill Goodbooks Baltimore, a new venture for our Goodwill, was launched in mid-2011 and ended the year strong, with 15,119 books sold online, through Amazon.com.

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PROFILE: Henry Carpenter Abandoned and left with a developmental disability Henry has overcome struggles that most of us could never imagine. Henry’s tough and traumatizing childhood made it hard for him to adjust to everyday work life and new people. He spent his first year at Goodwill’s custodial training program in almost complete silence but today he is a whole new person. Henry is engaged in life and with others. He is open and welcoming and possesses an overall confidence that was not there only a year ago. Henry’s resilience is a testament to the human spirit and what can be overcome when the right people provide the support and nurturing needed to heal.

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CONTRACT SERVICES Our contract services division provides on the job training to more than 170 individuals with severe disabilities everyday.

Goodwill cleans the Social Security Administration, Ft Meade Army Post, Environmental Protection Agency, and the Maryland State Office Building, in addition to operating several buildings at the US Coast Guard. Year after year, staff delivers the highest level of cleanliness and quality to our federal customers.

Their dedication to their work has led to another year of zero deductions for cleaning deficiencies in 2011 at all of our contract sites. This is our tenth year in a row without a deduction.

We also conducted a customer satisfaction survey to evaluate the custodial services that we provide for the Social Security Administration headquarters located at Woodlawn, Maryland. We are delighted to report that we scored a 4.8 out of a possible 5.

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PROFILE: Goddfrey Dunkley Goddfrey is a kind hearted and warm man who has long suffered with many disabilities that made finding and maintaining regular employment close to impossible. The one on one case management support given at the Social Security Administration by Goodwill staff has helped Goddfrey build up his confidence, develop an outstanding work ethic, and become more engaged with his peers and coworkers.

In 2011 Goddfrey received various awards from the SSA staff including Employee of the Year, a joyous experience for Goddfrey and the Goodwill staff that so lovingly and patiently helped coach him and taught him how to cope with everyday stresses and frustrations.

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2011 FINANCIAL REPORT

Operating Revenue Workforce Development Services Public Support

$3,343,385 870,848

Sale of Donated Goods

29,714,764

Contracted Services

11,786,246

Other

910,210

Sub-Total

46,625,453

Quasi-Endowment Fund Loss

<441,322>

Total

$46,184,131

Contracted Services 26% Workforce Development Services 7% Public Support 2% Sale of Donated Goods 65%

Operating Expenses Workforce Development Services Commercial & Custodial Training & employment Retail Employment Training & Services

9,316,427 20,652,988

Dues for National Services

166,270

Providing Community Information & Services

625,893

Administering Goodwill programs Depreciation Reserves for Program Expansion and Capital Expenditures Total

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$6,090,443

3,152,913 904,026 5,275,171 $46,184,131

Housing & Occupancy 17% Supplies & Materials 8% Other Operating Expenses 8% Payroll & Related Expenses 67%

GOODWILL IN THE COMMUNITY Headquarters

Columbia East

Padonia

222 East Redwood Street Baltimore, MD 21202 410-837-1800

7351 Assateague Drive Jessup, MD 20794 443-755-1486

200 West Padonia Road Timonium, MD 21093 410-666-7929

Crofton

Perry Hall

1657 Crofton Centre Crofton, MD 21114 410-721-4164

8818 Belair Road Baltimore, MD 21236 410-248-0070

Easton

Pikesville

Marge Thomas Career Center

134 North Washington Street Easton, MD 21601 410-770-4458

6999 Reisterstown Road Baltimore, MD 21215 410-358-8411

222 E Redwood Street Baltimore, MD 21202 410-837-1800

Eastpoint

Poppleton Boutique

Lower Shore Career Center

7928 Eastern Blvd Baltimore, MD 21224 410-282-8750

1 N. Poppleton St Baltimore, MD 21215 410-244-6210

700 South Salisbury Boulevard Salisbury, MD 21801 410-219-9216

Elkton

Salisbury

STEP

208 South Bridge Street Elkton, MD 21921 410-620-1281

700 S. Salisbury Road Salisbury, MD 21801 410-219-9072

2211 Maryland Ave Baltimore, MD 21218 410-625-1877

Fells Point

Security Station

STEP

715 S. Broadway Street Baltimore, MD 21231 410-327-2211

1700 N. Rolling Road Baltimore, MD 21244 410-448-9368

257 East Main Street Westminster, MD 21157 410-848-7793

Frankford

Snowden River

STEP

5201 Belair Rd, Baltimore, MD 21206 410-325-1940

9097 Snowden River Pkwy Columbia, MD 21046 410-872-0134

400 Muse Street Cambridge, MD 21613 410-901-0914

Jumpers Junction

Southside

STEP

8124 Ritchie Highway Pasadena, MD 21122 410-384-7235

859-865 E. Fort Avenue Baltimore, MD 21230 410-783-2995

711 Bel Air Road Bel Air, MD 21014 410-879-4010

Millersville

Towson

674 Old Mill Road Millersville, MD 21108 410-987-9740

1753 East Joppa Rd Towson, MD 21234 410-663-2192

Social Security Administration

Owings Mills

Waverly

11411 Reisterstown Road Owings Mills, MD 21117 410-581-8960

3101 Greenmount Avenue Baltimore, MD 21218 410-467-7505

Goodwill Staffing Services 222 East Redwood Street Baltimore, MD 21202 410-837-1880

Vehicle Donations 410-837-1800 ext 111

Retail Stores Aberdeen 2 Aberdeen Plaza Aberdeen, MD 21001 410-297-9136

Annapolis 1605 West Street Annapolis, MD 21401 410-269-1302

Belair 711 A Belair Road Belair, MD 21014 410-879-8001

Belvedere 5620 The Alameda Baltimore, MD 21239 410-323-6638

Churchville 2225 A Churchville Road Churchville, MD 21015 410-734-0612

Career Center Locations GenesisJobs 2211 Maryland Ave Baltimore, MD 21218 410-323-9400

Woodlawn Branch 6401 Security Blvd Baltimore, MD 21235 410-265-7085

The Waverly Family Center 829 Montpelier Street Baltimore, MD 21218 410-235-0555

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2011 BOARD OF DIRECTORS

Officers

Board of Directors

Chairman

Robert Aumiller

Lillian Kilroy

Frances Taylor

(OneMain Financial)

(Taylor & Ryan LLC)

(Mackenzie Commercial Real Estate)

Vice Chair

Joy Bramble

Dean Kenderdine

(The Baltimore Times)

(Maryland State Retirement Agency)

Kevin Byrne

Robert Kimmons (The Whiting - Turner Contracting Company)

(The Baltimore Ravens)

David Labuskes (RTKL Associates Inc)

David Downey Jr.

Andrew Levy

(Cassidy Turley)

(Brown, Goldstein, and Levy LLP)

Immediate Past Chair Gary Geisel

Secretary Joan Corcoran

Dennis Finnegan

(Attorney, Community Volunteer)

(1st Mariner Bank)

Treasurer

Thomas Finney

Jeff Jacobson

(U.S. Trust)

(Mister, Burton, Palmisano & French LLC)

David Fowler, MD

President and CEO

(Maryland Department of Health and Mental Hygiene)

Lisa Michocki (Towson University)

(WBAL-TV)

Marge Thomas (Goodwill Industries of the Chesapeake)

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Jayne Miller

Kathleen Snyder (Maryland Chamber of Commerce)

Herbert Goldman (Gordon, Feinblatt, Rothman, Hoffberger, & Hollander, LLC)

Bonnie Stein

Kenneth Grant

Joyce Van Dee Esq.

(Johns Hopkins Hospital)

(Joyce Rogers Van Dee, Esq)

Andre Johnson

Kim Weaver

(Key Solutions, LLC)

(McCormick & Company)

(PNC)

Chairman’s Advisory Council

President’s Advisory Council

Kevin Abell Roberto Allen Dallas Arthur Mark Barker Allen “Mac” Barrett Paul Beatty Thomas Burden James Cole M. Jenkins Cromwell Martin E. Dannenberg Gwen Davidson Ronald Fradkin Carolyn McGuire-Frenkil James Frenkil, MD C. Gordon Haines Kendra Heyde Andrew Hiduke Martin King Deborah Knight Kerr Gail Letts Bruce McLean David Meese Alvin Miller William Minkin Osborne Payne Henry Pear James Piper III Wayne Resnick Frederica Saxon Malinda Small Janet Tolbert Betty Waghelstein

Peter Chesner Ron Meliker Bill Tamulonis Darrell VanDeusen Phyllis Wilkens Rosetta Kerr Wilson

Nolan Ivory Vice President, Market Development

Philip Holmes Vice President, Public Policy & Program Development

Amy Newman

Life Members Henry H. Miller Thomas O. Nuttle George M. Radcliffe Brooks Robinson

LeadershipTeam

Vice President, Human Resources

Karen Pearson Vice President, Workforce Development

Holly Bangay Director, Financial Services

Michael Jacobs Project Manager, Commercial Services

Marge Thomas

Jeffrey Stengel

President

Director, Operations

Lisa Rusyniak

Ursula Villar

Senior Vice President, Chief Operating Officer

Director, Marketing and Development

Melvin Wilson Gerald Grasso

Staff Development Coordinator

Senior Vice President, Administration, Chief Financial Officer

Angela Green Assistant to the President

Doug Hiob Senior Vice President, Retail Operations

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From year to year our Goodwill continues to grow the economic retail engine that enables us to serve those most in need of employment and training services in the community and in programs offered but what remains unwavering is our dedication to the community and the people we serve. At the heart of Goodwill is our mission, to prepare people to secure and retain employment and build successful independent lives.

Goodwill Industries of the Chesapeake, Inc. 222 East Redwood Street Baltimore, MD 21202 410.837.1800 www.goodwillches.org

ANNUAL REPORT 2011 GOODWILL INDUSTRIES OF THE CHESAPEAKE, INC.