im•pact 2014 ANNUAL REPORT:
noun |ˈimˌpakt| The effect or influence of one person, thing, or action, on another: 1. Through the sale of donated goods, Goodwill has been able to make a significant impact in the lives of many individuals in need of work. 2. Through partnerships with over 1,700 area employers, Goodwill has made a valuable impact in communities by providing job placement assistance and career training services. 3. Goodwill’s efforts to resell, recycle, and repurpose the donated goods it receives has had a positive impact on the environment and diverted more than 28 million pounds of materials from landfills.
Our mission is changing lives.
this year’s report 3
Small Efforts Lead to: Maximum Impact
2014: People Served Numbers
Different Lives, Similar Paths: The Power of Work Offers Hope
2014: Financial Summary
Obion County: A Case Study in Goodwill’s Community Impact
2014 Important Facts
Green, Global, Goodwill: Environmental Stewardship That Creates Jobs
2014 Board of Directors
2014: Mission Services Numbers
2014: Senior Leadership
Clients Served Based on: Barriers To Employment
Glossary of Terms
Look for these symbols throughout our Annual Report for more in-depth interactive information
IMPACT | 2014 Annual Report
SMALL EFFORTS LEAD TO:
maximum impact They often arrive in bags or small cardboard boxes, but by years’ end they would fill a pro football stadium. Along the way, they provide thousands of jobs, save a forest, clothe the needy and the savvy, prevent pollution and change tens of thousands of lives. Donations of gently used clothing and household goods to Goodwill of Middle Tennessee drive our mission of providing employment and training opportunities to those struggling to find work. That’s widely known. But fewer people realize the extent to which Goodwill goes to squeeze the most possible value from every donation or how far those efforts go in generating tremendous impact on individuals, the environment, our communities and the economy across 48 Middle and West Tennessee
to sharing those findings with you as they become available in the months ahead. This much we know already: Goodwill is a unique, amazing social enterprise. The good it does through a relatively small investment reverberates through our lives and our communities, paying dividends over and again. Nowhere is this more obvious than in the results of our mission. In 2014, our Goodwill Career Solutions Centers served 28,159 people and placed 9,558 into jobs. Nearly 10,000 people were able to support themselves and their families and contribute to their communities thanks to Goodwill’s generous donors, shoppers and hard-working employees. We are determined to continue that momentum throughout 2015. We have set lofty goals, aiming to serve 30,000 people and put 11,000 into jobs. We have new initiatives, new stores and new Career Solutions centers coming online to help us get there. Your support of Goodwill is accomplishing more now than ever before. Thank you for helping us change lives.
Matthew Bourlakas | President & CEO Goodwill Industries of Middle Tennessee, Inc.
counties. This annual report attempts to describe just a few aspects of that impact. But even those of us intimately involved in Goodwill’s operations know we are just scratching the surface when it comes to gauging
Fred T. McLaughlin Chairman of the Board Senior Vice President Robert W. Baird & Co., Inc.
and communicating this organization’s overall value. That’s why we have engaged an independent organization to conduct a study of Goodwill’s economic impact. We look forward
IMPACT | 2014 Annual Report 3
DIFFERENT LIVES, SIMILAR PATHS:
the power of work offers hope
he path that brought Amgad to Goodwill Industries of Middle Tennessee began in
Egypt, but in many ways it was similar to those taken by thousands of other people who get help from Goodwill each year. Struggling to find a job, he walked through the doors of a Goodwill Career Solutions center, and there he found training and opportunities that changed his life.
IMPACT | 2014 Annual Report
Amgad “Goodwill gave me a good push,”
online. He quickly landed
Amgad said. “They opened the
two jobs and later was able to
door for me to have a good start.”
move into a single position in
“My goal is to have a good education, get the kids in a good school and then find the ideal job,” he said. “Goodwill gave me a start.”
maintenance at St. Cecilia Amgad emigrated from Egypt
Motherhouse, a Catholic
“It had been a struggle to try and
with his pregnant wife and three
institution in Nashville. As of April
live life and care for my children
children in 2013, seeking a new
he had been working in that job for
without a job,” she said. “I had a
life in America. Despite having a
lot of depression.”
the language barrier made his job
“I’m very, very happy here,” he
She said it particularly troubled her
search difficult. In June of 2013 he
said. “It’s not easy to find a way and
that her mother had to help take
made an impulse decision to visit a
a life, but when you find it, you will
care of her children.
Goodwill Career Solutions center
be very grateful.”
degree in Egyptology, he found
in Nashville. Grace had been out of work much
One day in 2011, on a whim she stopped in at Goodwill Career
At the center, he received training in
longer than Amgad when she came
Solutions. She signed up for job
digital literacy, help with his resume
to Goodwill. In fact, she had not
readiness classes and met one-
and guidance in searching for jobs
held a job in more than a decade.
on-one with a counselor. A week
IMPACT | 2014 Annual Report 5
later she was offered a job as a
“This job has put a whole different
Terrell was born blind. His parents
production associate in one of
light on my life,” Grace said, adding
were the first to suggest he look for
Goodwill’s downtown Nashville
“I’m able to pay my bills, help
employment help from Goodwill.
do things for my grandchildren
“From that day, I began to take
and just live a comfortable and
“I didn’t really know if Goodwill
could help me find a job, but I
back control of my life and also
signed up for it and it has been
gained self-respect and dignity,”
Terrell, an employee in
Goodwill’s call center, also knows
great,” Terrell said.
how a disability can increase the
Terrell completed job readiness
Even though Grace had previously
challenges of finding work. He was
and job search classes. His career
suffered a stroke that limited use
29 and had never held a job when
counselor recognized skills that
of her left side, she routinely out-
he first came to Goodwill Career
might make Terrell valuable in
produced most other employees in
Solutions in 2014.
Goodwill’s call center. After six
her department. She now audits the sorting of garments.
IMPACT | 2014 Annual Report
“The best part is knowing that I’m helping people and knowing that people I help enroll into Career Solutions … will be able to get jobs as well.”
Grace weeks of intense training, he
“I was very excited to be
became the first visually impaired
productive and working,”
client to work in that department.
Terrell said. “The best part
“This job has put a whole different light on my life,” Grace said, adding “I’m able to pay my bills, help do things for my grandchildren and just live a comfortable and decent life.”
is knowing that I’m helping He helped Goodwill adapt new
people and knowing that
themselves and their children — of
software for the purpose. While
people I help enroll into Career
whom there are now four.
talking to callers, Terrell scrolls
Solutions … will be able to get
through over 900 pages of
jobs as well.”
information on his computer that
“My goal is to have a good education, get the kids in a good
are read aloud to him through
For Grace, Terrell and thousands
school and then find the ideal
his headset. He is able to quickly
of others, Goodwill provides more
job,” he said. “Goodwill gave
help callers, whether they want
than just training or even a job. It
me a start.”
to talk to one of Goodwill’s
provides hope for a better future.
2,100 employees or are asking
Amgad is also a great example of
about Goodwill Career Solutions
this. When they are not working,
training, the location of a Donation
Amgad and his wife study English
Express Center or the hours of a
at Nashville Tech. They plan to
buy a house in November for
IMPACT | 2014 Annual Report
a case study in Goodwill’s community impact W hen the Goodyear Tire &
Rubber Co. factory in Obion County, Tenn., shut down in
2011, the local unemployment rate soared
past 18 percent. Many of the 1,800 laid off workers struggled with even the first step toward finding a new job. “Some folks worked there for 20, 30 or 40 years and never had to put together a resume,” explained Lindsay Frilling, economic development director for the Obion County Joint Economic Development Corp.
IMPACT | 2014 Annual Report
Numerous displaced workers received assistance with
residents or about 5.6 percent of the county’s total
their resumes at the Goodwill Career Solutions Center in
workforce. Of those served, 676 people landed a job.
Union City, the county seat. They also obtained guidance in online job searches, upgraded their computer skills and
All of Goodwill’s 28 Career Solutions Centers made
were connected to employers. Workers affected by other
impressive contributions in the communities they served
closures at a local Lennox fireplace plant and a hospital in
in 2014. In total, 28,159 received assistance and 9,558
nearby Fulton, Ky., also found help at Goodwill.
were placed in jobs. But few counties faced challenges as severe, and nowhere have Goodwill’s contributions been
As of March, the county’s unemployment rate stood
at 9.2 percent, above the state average One of the dozens of Obion County
but still evidence of a dramatic
employers hiring through
recovery. Recruitment efforts by state and local officials paved the way, luring new businesses in and motivating others, like Greenfield Products, to expand and create hundreds of jobs. But officials said there was another important factor in Obion County’s
“Without Goodwill, I don’t think economic recovery would have been possible in the short amount of time it has occurred,” Frilling said. “Goodwill has been a major player in the various entities that have come together to try to reduce the unemployment rate.”
Goodwill is Williams Sausage Company outside of Union City. The company’s human resources manager, Jennie Overall, has intimate knowledge of Goodwill’s impact on the community. She was once a Goodwill Career Solutions client.
economic comeback: Goodwill Industries of Middle Tennessee.
“I had lost a job I loved through downsizing, and I was unemployed for one
“Without Goodwill, I don’t think it would have been
year,” she recalled. “After knocking on doors and being
possible in the short amount of time it has occurred,”
turned away for whatever reason, I was really quite
Frilling said. “Goodwill has been a major player in the
discouraged. Then I saw the Goodwill ad in our local
various entities that have come together to try to reduce
paper. It turned out to be a great thing for me.”
the unemployment rate.” Through services she received at Goodwill, Overall County Mayor Benny McGuire agrees. “We’re very
landed a job at a local restaurant. She then found her
proud to have Goodwill here,” he said. “The (Career
way to Williams Sausage where she has been for more
Solutions) center is a great asset to Obion County, and
than five years. Now as an employer representative, her
Goodwill is a good retail partner.”
relationship with Goodwill is stronger than ever. Williams Sausage has participated in job fairs hosted by the
Last year alone, the Goodwill Career Solutions Center
Goodwill Career Solutions center, and it uses Goodwill as
in Union City assisted 1,888 people with employment
an intake point for applications.
opportunities and training, including 720 Obion County
IMPACT | 2014 Annual Report 9
those benefits might be unfamiliar
an arm of the company’s own
to people who don’t hire for their
companies or do not work in economic development.
Other Goodwill advantages are more widely recognized. “I love
“Goodwill is absolutely one of our
the Goodwill store,” Frilling said.
“They are always on the lookout to
selling points when recruiting new
“I drive around the parking lot and
help match the right person with a
industry or talking with existing
there are cars from all different
position I may have,” Overall said.
industry, whether they are looking
counties. They are not just an asset
“Most applicants that have gone
to replace people or doing an
on the job-placement side, Goodwill
through the Goodwill program
expansion,” she said. “Goodwill
puts people to work in their
make better employees and stay on
Career Solutions can come in and
facilities and brings people into the
the job longer.”
run a job fair or assist with a job
community. They are just amazing
fair. The beauty is the flexibility
Frilling said Goodwill also helps
of it. They can help as much as
communities in other ways. Some of
a company would like — sort of
“After knocking on doors and being turned away for whatever reason, I was really quite discouraged. Then I saw the Goodwill ad in our local paper... It turned out to be a great thing for me.”
10 IMPACT | 2014 Annual Report
Pictured from left are Roger Williams, Leslie Williams Anderson, Mark Anderson and David Williams. Photo by: Journal Communications
Jennie Overall knows what it’s like to struggle to find work. She’d been unemployed for a year when she went to Goodwill Career Solutions for help finding a job. Now, as the human resources manager for Williams Sausage, she is a firm believer in giving others the same chance through Goodwill. “Most applicants that have gone through the Goodwill program make better employees and stay on the job longer,” she says.
“I drive around the parking lot and there are cars from all different counties. They are not just an asset on the job-placement side, Goodwill puts people to work in their facilities and brings people into the community. They are just amazing to me.”
IMPACT | 2014 Annual Report 11
Green, Global, Goodwill:
environmental stewardship that creates jobs
hipping containers of shoes in Pakistan. Bales of Bermuda shorts in Burundi. Broken laptops that
don’t pollute villages in China, and mountains of valuable used items that don’t end up in Tennessee landfills. The environmental impact of Goodwill Industries of Middle Tennessee is so diverse and far-reaching, even Mary Stockett sometimes struggles to describe it. And as Goodwill’s director of continuous improvement and post market development, she knows the story better than anyone.
12 IMPACT | 2014 Annual Report
“There’s almost nothing you can name that we haven’t
“I just cleaned out my closet and bags of clothing are
received over the years, and we try to get the best possible
sitting in my living room ready to take to Goodwill.
value from it all,” Stockett said. “Our most important
They’re heavy, too. All of that would be going to the
take-away is that we’ve been good stewards of the
landfill if not for organizations like Goodwill.”
environment and created jobs.” Of course, some donated items fall below store quality or That stewardship starts with the not-for-profit’s operating
fail to sell. Last year, more than 28 million pounds of this
model, which is the sale of donated clothing and
material — enough to fill the Tennessee Titans’ stadium
household goods to fund Goodwill’s mission of providing
— was diverted from area landfills through Goodwill’s
training and employment opportunities
operations. After being baled or boxed,
across half of Tennessee. More
salvage materials are sold or recycled
than 4,100 donations per day added up to an estimated 76 million pounds of donations in 2014. Most of those items were sold in Goodwill’s 34 stores, allowing them to find new life with new owners, rather than being discarded. Nancy Zion, Williamson
so they, too, can contribute
“There’s almost nothing you can name that we haven’t received over the years, and we try to get the best possible value from it all,” Stockett said. “Our most important take-away is that we’ve been good stewards of the environment and created jobs.”
County’s solid waste director,
raising millions of dollars annually. One way to walk the path of Goodwill’s environmental trailblazing is in a single shoe. Each day, thousands of partnerless shoes are donated to Goodwill. Makku Ilyas, president
knows the environmental and economic cost of what Tennesseans throw
to Goodwill’s mission,
of Duluth, Ga.-based Infinite Rags, buys them in shipments weighing 15,000-
away. Her county, which has an aggressive recycling
20,000 pounds every two weeks. His company sorts them
program, nonetheless carries about 30,000 tons of
and works to match them closely with other shoes. Those
garbage per year — at a cost of $30 per ton — to the
that can’t be paired are recycled.
West Camden Sanitary Landfill in Benton County. But besides recycling aluminum, glass, tin and more,
Ilyas sells paired shoes in bulk to buyers in third world
Williamson County has another landfill- and money-
countries — generally Pakistan and occasionally the
saving tool in its toolkit: Goodwill.
United Arab Emirates. They are then sold to vendors who resell them from carts and shops to villagers who might
Last year, Goodwill Donations Express Centers located
otherwise go without.
in the county’s busiest solid waste convenience centers received an estimated 12 million pounds in donations.
“The need is great,” Ilyas said. “There is a humongous market for second-hand clothing and shoes in third-
“It’s astounding,” Zion said, and while she declined to
world countries, because a lot of people can’t afford to
speculate how much of that material might otherwise
buy new stuff.”
have ended up in the trash, she had a handy example.
IMPACT | 2014 Annual Report 13
Low-cost, salvage products
Goodwill recycled nearly 5.6 million pounds of cardboard and paper pulp last year — enough to save 48,497 trees.
from the U.S. help people who might otherwise go without or have to buy inferior quality items, said
has a store or a business selling this
Skip Wilson, co-owner of Atlanta,
clothing at prices folks can handle,”
Ga.-based Wilson Marketing
Group, which represents Goodwill and other nonprofits in salvage Last year Goodwill sold 12 million pounds of salvage clothing that was shipped to underdeveloped nations, mostly in tropical areas. The biggest market is East Africa — nations such as Burundi, Kenya and Uganda.
14 IMPACT | 2014 Annual Report
sales. The clothing also provides jobs for people in many countries, allowing them to support their families.
Collecting “everything that tears,” as Stockett says, from books and the boxes donations arrive in to its own office paper, Goodwill recycled nearly 5.6 million pounds of cardboard and paper pulp last
“The landfill would be the last stop,
year — enough to save 48,497 trees.
but instead, we are able to send it
And it employs sustainable business
on ... to Africa where somebody
practices at its 146 operating
locations, such as recycling light
The La Crosse, Wis.-
bulbs, recovering air conditioning
based firm recycled
refrigerants and using donated tools,
plastics, metals and
plumbing and electrical supplies.
leaded glass from more than 1.5 million
“The need is great,” Ilyas said. “There is a humongous market for second-hand clothing and shoes in third-world countries, because a lot of people can’t afford to buy new stuff.”
Where Goodwill’s environmental
pounds worth of non-
footprint cannot be found is also
important. China, for instance, is
items in 2014, such as
becoming known as a dumping
ground for e-waste, where
handheld drill batteries
primitive recycling contaminates
and Christmas lights,
the countryside and threatens
returning revenue for
But unsold home and office
appliances and electronics from
has a “no-electronic material landfill
Goodwill do not end up in such
policy” and ensures that its recycling
places, said Jeremy Olson, director
is conducted only in the U.S. or
of business development for
countries with similar environmental
Dynamic Recycling in Nashville.
“Goodwill is making a significant impact on our environment by diverting those electronics from landfills and supporting environmental sustainability.”
IMPACT | 2014 Annual Report 15
PEOPLE PLACED IN JOBS
TOTAL HOURS OF MISSION PROGRAM SERVICES PROVIDED =
Sessions of Intensive Job Placement Services
Occurrences of Work Assessment/ Evaluation
Days paid On-theJob Training within Goodwill
Sessions of Job Readiness/SoftSkills
Intake/eligibility of an individual
Occurrences of Job Fair Service
Occurrences of Job Retention Services
Occupational Skills Training Sessions
Day Camp Sessions (Summer Youth Program)
Day Activities for Adults (Day Habilitation)
Volunteer Hours of Services
Financial Education Class Sessions
Days unpaid Onthe-Job Training within Goodwill
One-on-One Financial Coaching Sessions
Other Mission Services = 615
16 IMPACT | 2014 Annual Report
Clients Served By:
barriers to employment
* TOTAL REPORTED DISABILITIES =
Psychiatric and/ or Emotional Disability
Learning Disability other than Autism
Developmental Disability other than Autism
Blindness or Other Visual Impairment
Deafness or Other Hearing Impairment
History of Substance Abuse
Other Disabling Conditions = 1,686 * Duplicates exist due to some clients reporting more than one barrier
* TOTAL REPORTED DISADVANTAGES =
Unemployed/ Dislocated Worker
Person with a Criminal Background
Lack of GED/ High School Equivalency
Working Poor/ Incumbent Worker/ Underemployed
Lack of/Low Literacy
Non-English Speaking/Limited English Proficiency
Other Disadvantaging Conditions = 10,859 * Duplicates exist due to some clients reporting more than one barrier
IMPACT | 2014 Annual Report 17
people served A diverse group of people received one or more
of Goodwill of Middle Tennesseeâ&#x20AC;&#x2122;s many job placement and training services in 2014. Thanks to Goodwill these 28,159 individuals were placed in a job or received quality training and certifications necessary to find work in the future.
18 IMPACT | 2014 Annual Report
0.9% 0.4% 50.3%
IMPACT | 2014 Annual Report 19
financial summary The community gave to Goodwill (Revenues) Sales of goods contributed by the community
Fees & grants for professional rehabilitation services
United Way support and other contributions
Market value increase (decrease) of investments
$77,073,973.00 Goodwill gave back to the community (Expenses) Sales Program
Career Solutions (Mission Services)
General and Administrative
$75,853,182.00 Net Revenues Resources for future investment in the community
20 IMPACT | 2014 Annual Report
important facts CAREER SOLUTIONS
were placed in jobs
highest retail sales of the 165 Goodwills worldwide.
employers are actively hiring Goodwill clients.
employees and clients were on payroll as of January 1, 2015.
clients were served
of Goodwill employees are mission related.
of Career Solutions clients who found work were placed in jobs outside of Goodwill.
donors dropped off items at o ur Donation Express Centers, on average, each day.
worth of gift cards were given away to assist those in need through our Goodwill Cares
34 Stores, 27Career Solution centers and 83 Donation Express Centers, in 48 counties, throughout Middle and West Tennessee.
pounds of salvage and recyclable m aterial was diverted from landfills.
IMPACT | 2014 Annual Report 21
board of directors OFFICERS Chairperson Fred T. McLaughlin Sr. Vice President Investments Robert W. Baird & Co., Inc. Vice Chairman Julie F. Wilson Sr. Vice President Healthcare Realty Trust
Secretary Chad M. Grout Principal Broker Urban Grout Commercial Real Estate Treasurer Dave M. Fentress Vice President – Internal Audit Dollar General Corporation
Legal Counsel Christopher S. Dunn and Waller Lansden Dortch & Davis, LLP Attorneys
Betty J. Johnson VP & Chief People Officer Goodwill Industries of Middle Tennessee, Inc.
Matthew S. Bourlakas President and CEO Goodwill Industries of Middle Tennessee, Inc.
Mary La Haie Vice President of Finance Goodwill Industries of Middle Tennessee, Inc.
DIRECTORS Woodretta Allen Cost Containment Manager United Parcel Service
Philip G. Hull CPA/Senior Consultant VACORESOURCES
J.B. Baker Chief Executive Officer Sprint Logistics, LLC
R. Craig Laine Senior Vice President CB Richard Ellis
Bryan Bean First Vice President SunTrust Bank
Ryan R. Loyd VP – Deputy Chief Accounting Officer Cigna-Health Spring
Steele Clayton Partner Bass Berry & Sims, PLC
Ty H. Osman President Solomon Builders
Andrew Davidson Account Executive Frank E. Neal & Co., Inc
Christine E. Skold VP, Investor Relations, Strategy & Continuous Improvement Tractor Supply Company
Jeff Young Vice President Tennessee Bank & Trust
Grant E. Starrett ** Vice President and Special Counsel Lion Real Estate Group
Donna Yurdin President Credo Management Consulting
Todd A. Spaanstra CPA/Partner Crowe Horwarth, LLP
*Ex Officio | **Intern
Robert Kennedy Account Executive The Crichton Group
Robert McNeilly, III President & CEO SunTrust Bank – Nashville
James B. Foley Associate CB Richard Ellis Kathryn S. Gibson Assistant Director VUMC Finance.
John W. Stone, III * Partner White & Reasor, PLC Kathryn I. Thompson Partner, CEO Thompson Research Group (TRG) John C. Tishler * Chairman Waller Lansden Dortch & Davis, LLP John Van Mol * Chairman & CEO DVL Public Relations and Advertising
TRUSTEES Robert Duthie CEO/Founder Duthie Associates, dba Duthie Learning
22 IMPACT | 2014 Annual Report
senior leadership Matthew Bourlakas President and CEO
Mike Eisenbraun Senior Director of Retail Support
Mary La Haie Vice President of Finance
Betty Johnson Vice President/Chief People Officer
Matt Gloster Senior Director of Career Solutions
Ed Oâ&#x20AC;&#x2122;Kelley Senior Director of Information Technology
David Jenkins Vice President of Retail
Karl Houston Senior Director of Marketing & Community Relations
Karen Samuel Senior Director of Human Resources
glossary of terms Work Assessments: Counselors help clients determine skills and aptitudes they have for successful employment. Career Solutions: Provides assessments, job readiness training, and one-onone counseling to anyone who needs help finding a job.
On-The-Job Training: Goodwill counselors and staff teach clients to perform basic jobrelated tasks while the client earns a paycheck.
Job Readiness Training: Instructors teach clients skills, including how to fill out an application, and give job interview tips.
Job Placement Services: Counselors help clients find work at Goodwill or other communitybased employers.
Job Retention Services: Counselors provide support to clients after the clients are hired.
IMPACT | 2014 Annual Report 23
OUR MISSION Founded in 1957 as a not-for-profit, Goodwill Industries of Middle Tennessee’s mission is, “We sell donated goods to provide employment and training opportunities for people who have disabilities and others who have trouble finding and keeping jobs.”
Goodwill Industries of Middle Tennessee, Inc. 1015 Herman Street Nashville, Tennessee 37208
P: 615.742.4151 F: 615.254.3901
Our mission is changing lives.