2023 Annual Report by GoodwillNIL

ONE GOOD THING LEADS TO ANOTHER

ANNUAL REPORT

2023

foreword

2023 was a remarkable year for Goodwill Northern Illinois. Across the territories we serve, our Mission Programs reached new heights, empowering 27,963 individuals to overcome obstacles to further their education, develop work skills and gain employment.

Fueling our mission’s success, our retail sales continued an upward climb in 2023. Our new Rockford store on Perryville Road, alongside our eleven other locations, generated financial resources to drive our programs forward. Our retail locations continue to elevate the customer shopping experience and provide the revenue needed to continue our impactful mission work.

Looking ahead, our commitment to transformative community initiatives remains steadfast. The upcoming Excel Center, set to open in fall 2025, will offer support and services for individuals striving to obtain their high school diploma and workforce credentials. In Rockford alone, tens of thousands of adults are without a degree, highlighting the critical need for initiatives like the Excel Center.

We extend our heartfelt gratitude to our donors, shoppers and stakeholders for your continued support to move our mission forward. Together, we’re creating a tangible difference in the lives of countless individuals and families creating generational change.

“

Ben Bernsten President & CEO

“As our Mission Programs grow, so too does our impact on individuals and their families for generations to come.”

Goodwill Northern Illinois ANNUAL REPORT 2023

4 Building for the Future 6 Program Highlights 8 Success Stories 10 What’s Ahead 12 Leadership 13 Financial Statement 14 Our Reach 15 Our Locations Goodwill Northern Illinois ANNUAL REPORT 2023 contents Goodwill Industries of Northern Illinois is a community-based not-for-profit organization whose mission is to create opportunities for individuals with barriers to enhance their lives. our mission

“

building for the future rockford perryville

“It’s a big win for our community: highly affordable goods generating sales to fund our fast-growing Mission Services.”

In 2023, 12 Goodwill Northern Illinois retail locations served over 1.1 million customers and generated the single largest share of a record $47 million in annual revenues. Over 90% of these revenues were then used to fund our vitally important Mission Services Programs— employing, training and providing support and skills for thousands of individuals with barriers and enhancing their lives. These stores

also serve as a major source for our donations stream—the lifeblood of our organization.

Perryville store: thinking outside the ‘big box.’

Our second Rockford retail store, strategically located in the North Perryville retail corridor, represents a state-of-the-art thrift store design and

14,847,240 lbs.

1,180,763

Goodwill Northern Illinois ANNUAL REPORT 2023 4

OUR IMPACT 2023

Donations Collected Customers Shopped

ONE GOOD THING LEADS TO ANOTHER

merchandising. The new store has been an immediate and significant success.

Shoppers find hidden treasures at amazing bargain prices that are typically unaffordable in a conventional retail store. Still others browse for books in our Book Nook bookstore or gather for meetings in the Community Resource Room. This store will add significantly to the revenue we use to empower those now challenged by barriers to employment.

27,963

Goodwill Northern Illinois ANNUAL REPORT 2023 5 Retail Services Contributions Interest & Other Income Participant Programs & Services Programs & Services Management & General Sources of Revenue and Support Allocation of Expense 2023

$0 2019 2020 2021 2022 2023 $5,000 $10,000 $15,000 $25,000 $20,000 $30,000 $40,000 $45,000 $50,000 $35,000

Sources of Revenue and Support (000s)

M i s s ionParticipantsServ e d iM s s ionParticipantsEmpl o y e d 1,620

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program highlights missions accomplished

“We served 27,963 people in many different ways – all with the same end goal: helping people create opportunities to enhance their lives.”

EDUCATION

In 2023, Our Mission Programs created life-changing opportunities where none existed before. Some of our latest, most exciting programs include:

GoodGRADS. Provides education services and case management for adults interested in attaining their GED/HSE.

Re-Entry Programs. Serves 18-24 year olds in Winnebago and Stephenson counties with justice system involvement, and provides them with intensive case management services, work experience, employment readiness, and support services.

Round Up Community College Scholarships. Funds support scholarships for individuals with disabilities in all our area communities through local community colleges.

Supported Employment Programs. Operates in 9 locations, serving participants with disabilities and provides a supportive work environment, job coach, and continued training.

The Workforce Connection. Goodwill is a proud partner of The Workforce Connection, where we serve individuals in training, education, and employment.

• 349 students were served: 87.5% retention in combined Rockford, Belvidere, Ottawa, and McHenry locations.

• 1,149 GED scholarships for individuals to take the GED test in all communities; 182 individuals obtained their GEDs.

ANNUAL REPORT 2022

Goodwill Northern Illinois

REPORT 2023 ONE GOOD THING ANOTHER

Goodwill Northern Illinois ANNUAL

WORKFORCE

Goodwill Impact

• 1,084 individuals obtained employment in our communities.

The Workforce Connection

• 16,353 individuals served throughout all Career Centers.

• 1,104 adults and dislocated workers enrolled in the training and employment program.

• 178 individuals participated in paid work-based learning, exploring careers, and learning essential skills on the job.

Elevate Youth

• 488 youth served with career services, training, credentials, case management, and support.

• 180 credentials earned including high school diplomas/GEDs and certificates in programs such as CNA, CDL, construction, warehouse logistics, and more.

Supported Work Programs

• 160 participants ‘earned and learned’ through employment, job training, job development services, and case management.

• 52 individuals with disabilities were assisted in obtaining employment and earning wages through Goodwill work experiences, permanent Goodwill employment, and other community employment placements.

RE-ENTRY

LifeLaunch/Accelerate

• 704 individuals served; 56 individuals received an industry-recognized certification.

• Less than 1% recidivism rate for enrolled participants.

Community Navigation

• 251 individuals in Winnebago County Jail received re-entry planning and resources during and after incarceration.

• Assisted with 27 record expungements, 184 birth certificates obtained, and 32 IDs/licenses obtained.

Goodwill Northern Illinois ANNUAL REPORT 2022

REPORT 2023

Goodwill Northern Illinois

ANNUAL

LEADS TO ANOTHER

success stories making an impact

Troy’s Story

Troy has been a participant in McHenry Goodwill’s Supported Employment Program for over 10 years. He does not communicate the same way that many of us do, so Goodwill has been working with him on different communication skills. Through the use of an iPad, Troy can communicate what he wants to do by touching an icon. Though he is still getting used to the device, Troy is enjoying being able to communicate better with his team!

“I appreciate the Accelerate staff for sticking by my side and believing in me.” “

Anissha’s Story

Anissha is a part of Goodwill’s Accelerate Program and is now a certified nursing assistant (CNA). While in training, Anissha showed that she had a great amount of selfmotivation and persistence. She came in knowing exactly what she wanted to do and what it took to achieve her goals. Anissha would eventually like to further her education by enrolling in nursing school and becoming a registered nurse.

Goodwill Northern Illinois ANNUAL REPORT 2023

environmental impact

In 2023, Goodwill diverted over 19 million pounds from our local landfills by recycling cardboard, shoes, clothing, metals, and computers. Reuse, Reduce, Recycle: it’s what we do!

2023 Graduation

In November 2023, Goodwill’s GoodGRADS program held its largest GED graduation ceremony to date! Thirty-four deserving individuals participated in the event and received their GED certificate amongst family, friends, and Goodwill staff. These students overcame various obstacles, conquered any fears they had, worked incredibly hard, and reached their goals! Students in the GoodGRADS program received classroom instruction, tutoring, case management services, transportation assistance, and referrals to outside agencies to assist them in overcoming barriers.

Goodwill Northern Illinois ANNUAL REPORT 2023

OPENING 2025: WHAT’S AHEAD

“The Excel Center will help students prepare to succeed in good paying jobs for economic security.” “

It’s our community’s most daunting challenge—a public high school graduation rate of just 50%—well below the Illinois average of 88%. For those students that drop out, the future can be bleak. Most will have significantly worse labor market outcomes than their peers with degrees, and earn far less over the course of their lives.

Ready to Excel

To help meet this challenge, Goodwill Northern Illinois will open an Excel Center in Rockford, IL in 2025. The Goodwill Excel Center will provide a tuition-free adult high school for individuals 18+ that will award state certified high school diplomas and industry recognized credentials,

provide free onsite childcare, transportation assistance, flexible class schedules, connections to community resources and dedicated career counselors.

Founded by Goodwill of Central and Southern Indiana in 2010, the schools now operate in 40 campuses throughout the United States and offer a proven model for success.

Rockford will benefit

In Illinois there are over 1 million adults without a high school diploma. In Rockford alone, that number tops 30,000 and it is the number one cause of generational poverty.

The statistics are staggering— 2 out of 3 adults without a high school diploma are low income,

SCHEDULES FOR ADULTS

Northern Illinois ANNUAL REPORT 2023 10 FLEXIBLE A

Goodwill

FREE HIGH SCHOOL CLASS

and adults without a high school diploma will earn 70% less over the course of their lifetime. It is also two times more likely a child will drop out of school if their parents don’t graduate, creating a cycle of poverty.

Location

The adult high school will be located at 808 W. Riverside Blvd. in the former Gustafson’s Furniture in the North Towne Mall. The current facility will be updated as an adult learning campus and will include 10 classrooms, a computer lab, and free childcare services. The school will accommodate up to 300 students and will employ up to 20 new staff. Bus transportation is readily available at that location.

Opening Date & Registration

The Excel Center will open in 2025 once construction is completed. Enrollment will begin in the Spring/Summer of 2025. Registration information will be available on the website at www.excelcenternil.org.

ONE GOOD THING LEADS TO ANOTHER

40% Increase in Employment

For Excel Center graduates as compared to before they enrolled.

39% Increase in Earnings

For Excel Center graduates compared to those without a diploma.

100% Equitable Employment and Wage Incomes

Experienced by Excel Center graduates.

Goodwill Northern Illinois ANNUAL REPORT 2023

key findings 0% 20% 40% 60% 80% 100% 11 For more information, visit www.excelcenternil.org CAREER COUNSELORS ENROLLING SPRING/SUMMER 2025

Jim Corbett Chairman Vice President, Human Resources Summit Credit Union

Chris Black Finance Director Village of Buffalo Grove

Michael Iasparro Partner Hinshaw & Culbertson LLP

Ben Bernsten President

GOVERNING BOARD OFFICERS

Paulina Sihakom Vice-Chairman Vice President, Business Development Banker Capital One

Kerry Hill Treasurer Vice President Finance, Northern Region OSF Health Care

GOVERNING BOARD

Julio Capeles Assistant Professor of Social Sciences Oakton College

Mike Mastroianni President MDM Consulting

Dr. Arnold Ross (Les) Rock Valley College (Retired)

GOODWILL LEADERSHIP TEAM leadership

Jennifer Chapel Director of Finance

Craig Steege Director of Retail

Jonathan Gates Educator Rockford Public Schools, District #205

Tiana McCall, MBA Northern Stateline Regional Manager Illinois Department of Commerce and Economic Opportunity

Al Softley Owner Softley, Inc.

Courtney Geiger Director of Mission Services

Ginnie Weckerly Director of Human Resources

Mandolyn Mackenzie Secretary Marketing Consultant

Mark Hunter Regional Health Officer Illinois Department of Public Health

Tina Rittner Director of Human Resources Field Fastener

Donna Hayes Director of Marketing

Goodwill Northern Illinois ANNUAL REPORT 2023

financial statement

Goodwill Northern Illinois ANNUAL REPORT 2023

Statement of Financial Activities (000's) 1 Updated 5/22/2024 REVENUE & SUPPORT 2023 2022 2021 2020 2019 Participant Programs & Services $4,858 $3,629 $2,815 $2,064 $1,400 Retail Services $27,254 $24,627 $32,943 $24,166 $25,366 Contributions & Donations $13,131 $12,995 $2,391 $5,309 $379 Investment Income $1,183 ($1,418) $728 $134 $251 TOTAL REVENUE & SUPPORT $46,426 $39,833 $38,877 $31,673 $27,396 EXPENSES 2023 2022 2021 2020 2019 Programs & Services $39,530 $36,539 $30,498 $25,765 $24,605 Management & General $2,693 $2,601 $2,120 $1,864 $2,015 Fundraising $115 $102 $101 $87 $92 TOTAL EXPENSES $42,338 $39,242 $32,719 $27,716 $26,712 Statement of Financial Position (000's) 1 ASSETS 2023 2022 2021 2020 2019 Cash and Cash Equivalents $5,121 $6,230 $6,058 $8,879 $2,659 Accounts Receivable - Net $894 $567 $528 $431 $511 Inventories $971 $1,039 $849 $793 $827 Prepaid and Other Assets $418 $325 $636 $571 $532 Long-Term Investments $12,481 $8,928 $10,211 $3,341 $3,236 Right of Use Assets - Net $4,946 $7,269 Property, Plant, & Equipment $11,332 $8,359 $6,722 $4,868 $5,280 TOTAL ASSETS $36,163 $32,717 $25,004 $18,883 $13,045 LIABILITIES 2023 2022 2021 2020 2019 Accounts Payable $590 $421 $249 $176 $217 Accrued Expenses $1,405 $1,199 $1,168 $856 $744 Bonds & Debt Payable $4,190 $2,904 $3,127 $3,527 $1,720 Right of Use Liability $5,097 $7,462 Defered & Other Liabilities $203 $141 $455 $477 $487 TOTAL LIABILITIES $11,485 $12,127 $4,999 $5,036 $3,168 NET ASSETS $24,678 $20,590 $20,005 $13,847 $9,877 TOTAL LIABILITIES & NET ASSETS $36,163 $32,717 $25,004 $18,883 $13,045 Allocation Sources of Revenue $0 $5,000 $10,000 $15,000 2023 2022 2021 2020 2019 Sources of 13 1 2023 data taken from the audited financial statements which include the implementation of ASC Topic 842.