Annual Report 2009

We change...

Report

people’s lives through employment and support them in their transition to work.

2009

Annual

Goodwill Industries of Middle Tennessee, Inc.

Transition is at the core of what Goodwill does. We have the privilege of serving people who are in transition in their life, perhaps changing from one job to another, from not working to working, from dependence to independence…transitions.

The goods we sell in our stores are in transition, too. They are moving from one person who has finished with them to another who values them. The sales of those goods enables Goodwill to assist the people we serve with their transitions.

“Change is the constant,

the signal for rebirth, the egg of the phoenix.”

-Christina Baldwin, author

In 2009, Goodwill itself began a transition. We began construction of a new Career Solutions building to house our employment and training and our human resources staffs. The building will enable us to expand our services for many years to come. In fact, the building itself is a transition of sorts. Material from what was the original Career Solutions facility, which was built on the site in 1954, was crushed and incorporated into the foundation and parking area of our new building. It seems fitting that the former building is now part of the new beginning for our employment services.

The investment in our Career Solutions building is an investment in the future of the many people who will look to us as they begin important transitions in their life. We are grateful for all of the donors, shoppers and others who support our efforts. Our commitment to each remains as it has been, “We change lives.”

The pages that follow will tell you of some of the wonderful people who came to Goodwill to make a transition in their life.

They inspire us each day, and I am confident you will also be inspired by their stories.

David Lifsey, President & CEO

Mission

Demographics

Services Participants 11,237 Assessments

2,347

Job Readiness Training Work Skills Training

8,234

Goodwill On-the-Job Training

1,710 575

Job Placement Help 8,234 Retention

2,465

Glossary

Participant: 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 client earns a paycheck.

Job Placement Help: Counselors help clients find work at Goodwill or other community-based employers.

Retention: Counselors provide support to clients after the clients are hired.

Gender Female Male

4,781 6,456

Race

White 5,922 Black/African American 4,876 American Indian/Eskimo/Aleut/Native American 45 Asian/Pacific Islander 83 Other 272 Unknown or unreported 39 Hispanic

Age

15 and under 16-24 24-34 35-44 45-54 55 and over Unknown or unreported

623

133 2,911 2,645 2,405 2,206 921 16

Disability

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

Disadvantage

Unemployed/Dislocated worker Working poor/Incumbent worker/Underemployed Welfare recipient At-risk youth Offenders/ex-offenders Older worker Homeless Non-English speaking/English second language Lack of literacy Lack of GED/high school equivalency Other disadvantages Unknown or unreported barrier

57 25 141 129 212 189 317 154 237

6,413 101 961 181 3,076 329 659 383 152 1,776 1,007 470

There is irony in Bill’s story, much irony.

He was a physical education teacher who had majored in speech communications. He went on to earn a Masters degree in counseling. But he was forced to transition from teacher to student after several strokes; the first in 1994 and a second, smaller stroke in 2008. Now he works with counselors and therapists who continue to help him recover and regain skills. His wife, Lynda, says, “He is now an observer of life. It’s all still there inside, but he struggles to communicate.”

In his halting speech Bill says, “My job now is getting over it and moving on.” Having always been a man with drive and purpose, Bill provides top-notch customer service working in the mail center at Nissan North America’s corporate headquarters in Franklin through a partnership with Goodwill and Administrative Resource Options.

“He’s driven at work and proud to be part of Goodwill,” says Bill’s wife, Lynda. “His job is everything and he feels good every day he’s at work.” Bill joined Goodwill after visiting the Spring Hill Career Solutions office looking for an opportunity. For his efforts, he was named the 2009 Spring Hill Graduate of the Year. Bill is proof that we all have the capability to set and reach goals and to never be afraid of a challenge.

Hart

As a Goodwill employee working for an outside firm, Bill receives on-the-job support from his job coaches, including Tracey McDaniel and Bev Kassis. Bev says Bill’s sense of humor is still intact. “Bill always says, ‘morning,’ to the people throughout Nissan when he delivers their mail, no matter what time of day.” Bev adds, “He hopes the employee will say, ‘morning,’ in return, even if it’s the middle of the afternoon!”

Bill

“Fourteen months is a long time to look for something and not find it,” says Tammy, who was in the job market for one year and two months. Her long work drought finally ended when she met with Angie Griffin, the Career Solutions counselor in Clarksville. Just one month after she came to Goodwill, Tammy moved on from the depression and despair that comes with a long job search to being a breadwinner again. I’m trying to be a role model for my kids and help my husband support our family.”

The road to work was fraught with potholes for Tammy, all of which Angie has helped fill. Tammy is now a retail associate at our Clarksville store on Madison Street where Angie placed her for a situational assessment, with supervised on-the-job training. When she had completed the assessment, store manager Priscilla Dakin gave Tammy the news she’d been waiting 14 months to hear, “You’re hired!”

Work is just part of Tammy’s busy routine today. As she transitioned from unemployment to earning a paycheck, and with Angie’s help, Tammy is studying for her GED, again. “I hope I pass since it’ll be the ninth time I’ve taken the test,” says Tammy. To earn her GED will allow Tammy to make another transition in her life, and move her closer to reaching what she once saw as an impossible dream. “Getting my GED will help me achieve my biggest goals, which are to become a medical assistant and then a registered nurse.”

“Goodwill has given me more than a job,” says Tammy. “My job means I can reach my dreams and that I can help contribute to the family with a second income. I don’t want them to struggle like I have.

Goodwill has made the difference in my life.”

Hobbs

“Tammy has Attention Deficit Hyperactivity Disorder (ADHD) and didn’t have health insurance. She wasn’t taking her medication, which made it difficult for her to concentrate while attending GED classes,” says Angie. A few phone calls later, Angie connected Tammy with a clinic and she says, “Tammy is again taking her medication. I’ve also helped her through computer classes, and counseled her about basics such as what to wear to an interview. Tammy gave it her all, and I’m so proud of how far she’s come.”

Tammy

The competition for work in west Tennessee is fierce, with more than four thousand people once employed in the manufacturing sector now in the job market. Donald was one of those displaced workers. He had been with the same Humboldt, Tenn. company for 27 years when he was laid off from his forklift job due to the down economy. That was almost three years ago.

Donald’s job search lasted eight months. His break came when he visited Career Solutions counselor Casey Coatney in Jackson. After two days of classes with Casey, who knew that Donald’s skills were needed in the Jackson processing center, she helped Donald transition to his new job as a forklift operator in the north Jackson store’s donations processing center.

“It was cool to have a job again,” says Donald. “I was able to work and support my family, and I really appreciated that. I especially appreciate all the people who give us their donations. That’s why I’m working today.”

“I sell a lot of clubs to my golfing buddies and family,” says Donald. I tell them that if they want to pick up an extra club, there’s no better place than Goodwill!”

As Donald knows all too well, a good day at work is like a good day on the golf course. Each has its challenges, each brings opportunity, and there are always great stories to tell at the end of the day!

Turner

Another benefit for Donald is the steady supply of golf clubs that come through the Donations Express Center. As an avid golfer who once shot an 80 at the Diamond Oaks course in Trenton, Tenn., Donald enjoys talking a good game with our generous donors. He may also be the company’s number one salesperson for golf clubs.

Donald

“I can’t even think of my life without Goodwill,” says Tonya.

“My job at the Cookeville store keeps me going every day. My goal is to make Goodwill my career.”

A new career was the last thing on Tonya’s mind when she met with Career Solutions counselor Jane Byers in early 2009. All she wanted was a job. A back injury had forced her to leave her career as a hairdresser. Her son was then four years old. She was jobless and homeless for two years, and the pair survived thanks to the generosity of friends who offered food and a couch at night.

Tonya started a situational assessment, similar to supervised on-the-job-training, as a grader. Within four weeks she was hired. Tonya then moved from grader to tagger in the plant, and is now doing what she says is her calling. She’s a cashier, working with customers again, much as she did when she was a hairdresser. Her transition is complete.

“Not having a job was stressful. I’m so grateful that Jane gave me a chance,” says Tonya. She adds, “When I come into the store, it’s not work. It’s like I’m with my second family. And this family has given me back my life.

I can pay my bills and I have a home for me and my son. I’m blessed and humbled by all that Goodwill has done for me.”

Dodson

Then Tonya’s fortune changed with a simple glance as she drove by the Cookeville store and saw the sign for Career Solutions. It was the start of her transition from homeless to self-supporting. She met with Jane for help finding a job. That meeting led to work as a grader in the store’s processing plant. “Tonya could only work part time due to her injury and met all the criteria for what Goodwill was looking for in an employee,” says Jane.

Jane also says, “I saw something in Tonya, and I knew she needed a break.”

Tonya

There are many ways to measure the true success of an organization. At our Goodwill the individual parts that form the whole are our true measure of success. Each department and team member is integral and all bring their experience, expertise and guidance to make the agency stronger. In 2009, each piece formed a balanced enterprise, capable of transitioning its operation to better meet the changing needs of our clients, employees and growth of our business.

The numbers speak for themselves.

Retail…

For the first time ever, three stores topped the $2 million mark and 26 stores reached $1 million in sales.

In an interesting contrast, just five years ago only eight stores were able to reach $1 million sales and none had hit the coveted $2 million goal. In addition to increased sales, two new retail sites opened. We returned to East Nashville and relocated our Outlet Store to the Berry Road complex. The growth produced 12 jobs directly linked to retail and numerous jobs within our processing facilities to support the new stores.

Donations…

It was a record year for our donations team, with an average of 3,265 donors stopping by our Donation Express Centers each day; 2009 ended with 1,185,217 donors. That’s the largest number of donors we’ve ever had give to our Goodwill in a single year. With a goal to continue to provide the highest quality customer service throughout the communities we serve, our donations team also added four new sites in 2009.

Human Resources…

In order to make it easy and convenient for our employees to deal with HR inquiries, the HR team reorganized into territories to provide one-stop shopping. This new system gives managers and employees a direct and specific HR contact to handle their service needs.

Safety…

Our focus on the safety of our employees and customers continues to pay dividends. Employee accidents were down 41 percent in 2009. To reward employees whose teams went 12 consecutive months accident-free, our safety team manned the grills and cooked steak dinners for more than 350 employees!

E-Commerce…

E-Commerce continued its growth and in 2009, more than doubled in size for the second consecutive year, and ended the year with more than $1 million in sales. Due to the department’s growth, the team moved into its current and larger space in the Story Building in Nashville. The department made international news at the beginning of the year due to the sale of a rare early 20th Century watercolor found in a donation bin in the Story Building. The Ellsworth Woodward painting sold for a record $7,500 to a museum in New Orleans.

Career Solutions…

Our Nashville Career Solutions team relocated temporarily during construction of its new home, scheduled to open in the fall of 2010. The counselors working in our 15 Career Solutions offices located throughout the 46 counties served by Goodwill Industries of Middle Tennessee, Inc., served a record 11,237 clients in 2009. Career Solutions also entered a partnership with Nissan North America and Administrative Resources Options to provide mailroom services at Nissan’s corporate headquarters in Franklin, Tenn. Goodwill job counselors are on-site with those Goodwill employees to provide oversight and guidance.

Marketing…

The marketing team launched its social media campaign which allows our followers to keep pace with our events, activities and information. Marketing also worked with retail and maintenance to retrofit all 33 stores to ensure each is uniform in look and design and meets the company’s branding standards. Become a fan or friend of our Goodwill, and follow us at facebook.com/ giveit2goodwill, twitter.com/giveit2goodwill and youtube.com/ giveit2goodwill.

IT…

Shopping and checkout at our relocated Outlet store became easier thanks to a new point-of-sale system which has been integrated with floor scales. Customers now have a fast and efficient way to buy by the pound. The IT team developed a transportation management system, providing communication between dock workers, truck drivers and dispatchers. The system also provides information about the inventory and contents on all trailers. To accommodate internal growth, IT increased the capacity of our corporate bandwidth to accommodate future growth and implemented our first remote locations that utilize our VoIP phone system. This allows us to service remote locations with our corporate phone server.

Financial Information

Statement of Financial Position GOODWILL INDUSTRIES OF MIDDLE TENNESSEE, INC. Statement of Financial Position

at December 31 ASSETS Current Assets: Operating Cash Operating Reserves Accounts Receivable Inventories Prepaid Expenses Total Current Assets Non-Current Assets: Designated Investments Land, Building and Equipment Net of Depreciation Other Non-Current Assets Total Non-Current Assets TOTAL ASSETS LIABILITIES AND NET ASSETS Current Liabilities: Accounts Payable Accrued Payroll and Employee Benefits Accrued Sales Tax Current Portion of Long-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Liabilities: Other Non-Current Liabilities Long-Term Debt Total Long-Term Liabilities TOTAL LIABILITIES Net Assets: Board Designated Other Unrestricted Temporarily Restricted TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS

2009

2008

2007

Operating and Five-Year Financial Summary GOODWILL INDUSTRIES OFFund MIDDLE TENNESSEE, INC. Financial Information

2006

2005

$869,292 6,319,410 531,184 1,415,373 387,814 9,523,073

$861,851 2,716,636 435,035 1,126,247 252,135 5,391,904

$819,751 1,484,549 481,719 1,011,936 288,558 4,086,513

$632,768 2,436,631 514,502 912,549 288,797 4,785,247

$416,284 2,665,963 402,961 771,443 137,829 4,394,480

2,596,445

2,128,411

2,144,295

1,650,863

1,032,637

21,603,389 18,555,931 18,681,520 14,633,147 10,521,788 516,053 350,049 448,137 350,260 244,121 24,715,887 21,034,391 21,273,952 16,634,270 11,798,546 $34,238,960 $26,426,295 $25,360,465 $21,419,517 $16,193,026

$123,963 2,204,611 127,094 1,226,841 544,870 4,227,379

$183,161 2,310,913 131,108 833,954 474,621 3,933,757

$178,817 2,013,647 117,843 795,569 506,898 3,612,774

$330,481 1,666,211 106,434 511,953 454,984 3,070,063

$209,306 1,292,862 86,696 403,838 341,971 2,334,673

536,816 8,808,082 9,344,898 13,572,277

290,279 5,322,301 5,612,580 9,546,337

382,392 6,144,669 6,527,061 10,139,835

307,594 4,728,702 5,036,296 8,106,359

199,226 3,242,010 3,441,236 5,775,909

2,596,445 2,128,411 2,144,295 1,650,863 1,032,637 18,062,080 14,746,547 13,076,335 11,662,295 9,384,480 8,158 5,000 0 0 0 20,666,683 16,879,958 15,220,630 13,313,158 10,417,117 $34,238,960 $26,426,295 $25,360,465 $21,419,517 $16,193,026

Audited financial statements for 2009 and 2008 are available upon request.

GROUPED REVENUE Sales Program Career Solutions Commercial Services United Way Support and Other Contributions Investment Income Market Value Increase (decrease) of Investments Other TOTAL REVENUE

2009 $45,502,096 320,922 46,680

2008 $41,008,826 253,493 203,979

2007 $36,995,210 240,567 343,572

2006 $30,375,737 259,984 543,141

2005 $26,521,355 233,563 406,083

69,238 117,448

96,099 73,874

230,498 121,596

449,173 192,119

155,930 71,035

214,795 121,348 $46,392,527

(287,110) 128,225 $41,477,386

89,572 139,965 $38,160,980

53,580 2,977 $31,876,711

12,520 263 $27,400,749

GROUPED EXPENSES Sales Program Career Solutions Commercial Services General and Administrative TOTAL EXPENSES

2009 $34,859,833 2,923,032 55,260 4,770,835 $42,608,960

2008 $32,260,178 2,706,009 247,498 4,609,373 $39,823,058

2007 $29,385,201 2,260,753 352,621 4,254,933 $36,253,508

2006 $23,642,126 1,391,781 526,389 3,420,374 $28,980,670

2005 $20,946,735 1,085,731 449,587 3,379,694 $25,861,747

Summary Statement of Revenue and Expenses REVENUE SOURCES 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 TOTAL REVENUE

2009 Amount $45,502,096 320,922 46,680 69,238 117,448 214,795 121,348 $46,392,527

% of Total 98.1% 0.7% 0.1% 0.1% 0.3% 0.5% 0.3% 100.0%

DIRECT EXPENSES Sales program Career Solutions Commercial Services General and administrative TOTAL EXPENSES

2009 Amount $34,859,833 2,923,032 55,260 4,770,835 $42,608,960

% of Total 81.8% 6.9% 0.1% 11.2% 100.0%

Audited financial statements for 2009 and 2008 are available upon request.

Board Chairman:

John W. Stone, III, Partner White & Reasor, PLC

Vice Chairman:

Robert McNeilly, III, President and CEO SunTrust Bank

Secretary:

Donna B. Yurdin, Owner Credo Management Consulting

Treasurer:

Kathryn S. Gibson, Accounting Manager Vanderbilt University Medical Center Department of Finance

Legal Counsel:

Christopher S. Dunn, Attorney Waller Lansden Dortch & Davis, LLP

Goodwill Officers:

of

Directors J. B. Baker President and CEO Volunteer Express, Inc.

J. Mike Bishop Asst. Vice President Pharmacy Services Health Trust Purchasing Group William H. Cammack, Trustee Chairman Equitable Trust Company E. Steele Clayton, IV Partner Bass, Berry & Sims, PLC David Condra Chairman Dalcon Enterprises

David Lifsey, President and CEO Goodwill Industries of Middle Tennessee, Inc.

Gary W. Cordell Consultant

Tammy Glass, Vice President of Finance Goodwill Industries of Middle Tennessee, Inc.

Robert W. Duthie Founder Duthie Associates, Inc.

Betty Johnson, Vice President of Employment Services Goodwill Industries of Middle Tennessee, Inc.

Deborah Y. Faulkner Inspector General State of Tennessee - TennCare John C. Greer Vice President TennComm, LLC L. Hall Hardaway, Jr. Chairman (Retired) The Hardaway Group

Jeffrey A. Hoffman Richelieu America, Ltd.

Decosta Jenkins President and CEO Nashville Electric Service Robert B. Kennedy Vice President First Horizon Insurance Group, Inc. James L. Knight, Trustee President (Retired) Check Printers, Inc. R. Craig Laine Rinaldo Group, L.P. Kevin P. McDermott Partner KPMG LLP Fred T. McLaughlin, Trustee Branch Manager, Sr. VP Investments Robert W. Baird & Co., Inc. Thomas S. Stumb President Nashville Bank & Trust John Tishler Chairman Waller Lansden Dortch & Davis, LLP George Van Allen President Nashville State Community College

“Friends of Goodwill, be dissatisfied with your work until every handicapped and unfortunate person in your community has an opportunity to develop to his fullest usefulness and enjoy a maximum of abundant living.�

-Rev. Edgar J. Helms, Goodwill Founder January 19, 1863 - December 23, 1942

Acknowledgments

Design | Scott Bryant Copy | Suzanne Kay-Pittman Advisors | Karl Houston, Niketa Hailey-Hill, Ashley Deets, Jeff Carter and Natisha Moultry Printing | Douglas Printing