Annual Report 2009

Annual Report

2009

Goodwill Industries of Middle Tennessee, Inc.

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

We change

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the signal for rebirth, the egg of the phoenix.”-Christina Baldwin, author

“Change is the constant,

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 enable Goodwill to assist the people we serve with their transitions.

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 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

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Gender Female 4,781Male 6,456

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

Hispanic 623

Age 15 and under 13316-24 2,91124-34 2,64535-44 2,40545-54 2,20655 and over 921Unknown or unreported 16

Participants 11,237Assessments 2,347Job Readiness Training 8,234Work Skills Training 1,710Goodwill On-the-Job Training 575Job Placement Help 8,234Retention 2,465

Participant: People who were provided information for a potential path in employment or job training.

Assessments: Counselor helps clients determine skills and aptitudes he or she has 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.

Glossary

MissionServices Demographics

Disability Blindness or other visual impairment 57Deafness or other hearing impairment 25Other physical disability 141Neurological disability 129Learning disability 212History of substance abuse 189Psychiatric and/or emotional disability 317Developmental disability 154Other disabling condition 237

Disadvantage Unemployed/Dislocated worker 6,413Working poor/Incumbent worker/underemployed 101Welfare recipient 961At-risk youth 181Offenders/ex-offenders 3,076Older worker 329Homeless 659Non-English speaking/English second language 383Lack of literacy 152Lack of GED/high school equivalency 1,776Other disadvantages 1,007Unknown or unreported barrier 470

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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.

Bill

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, (who has moved into Career Solutions) who 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!”

“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 coming to 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 of setting and reaching goals and to never be afraid of a challenge.

Ha

rt

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

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

Tammy Ho

bb

s

“Fourteen months is a long time to look for something and not find it,” says Tammy,

Work is just part of Tammy’s busy routine today. With Angie’s help, Tammy is studying for her GED, again. “I hope I pass since it’ll be the ninth time I take the test,” says Tammy. “Getting my GED will help me achieve my biggest goals, which are to become a medical assistant and then a registered nurse.”

“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.”

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

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with more than four thousand people once employed in the manufacturing sector, in the job market. Donald was one of those displaced workers. He was 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 him transition to his new job as a forklift operator in the north Jackson store’s donations processing center on day three. “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 come through and give us their donations. That’s why I’m working today.”

Donald Turn

er

The compitition for work in west Tennessee is fierce,

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., he enjoys talking a good game with our generous donors. He may also be the company’s number one salesperson for golf clubs. “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!

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Tonya Do

dso

n

“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.

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

Then Tonya’s fortune changed with a simple glance when she drove by the Cookeville store and saw the sign for Career Solutions. It was at this point that she started 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 a processing employee,” says Jane. Who also says, “I saw something in Tonya and I knew she needed a break.”

Tonya started a situational assessment, similar to supervised on-the-job-training, as a grader. Within four weeks she was hired. Tonya has since 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.

“Not having a job was stressful. I’m so grateful that Jane gave me a chance,” says Tonya. She adds, “When I come in to 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.”

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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 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.

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 and well-versed operation. We grew in the retail sector, added donation sites, served a record number of clients and continued growth within all departments.

The numbers speak for themselves.

Safety…Our focus on the safety of our employees and customers continues to pay dividends. Employee accidents were reduced 41 percent in 2009. To give a tangible reward for going 12 months without an accident, our safety team manned the grills and cooked steak dinners for departments who managed that feat. In 2009, more than 350 employees were treated to steak!

E-Commerce…E-Commerce continued its growth and in 2009, more than doubled in size for the second continuous year, and finished 2009 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 thanks 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 into 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 employees.

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.

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StatementofFinancial Position

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

at December 31 2009 2008 2007 2006 2005ASSETSCurrent Assets: Operating Cash $869,292 $861,851 $819,751 $632,768 $416,284 Operating Reserves 6,319,410 2,716,636 1,484,549 2,436,631 2,665,963 Accounts Receivable 531,184 435,035 481,719 514,502 402,961 Inventories 1,415,373 1,126,247 1,011,936 912,549 771,443 Prepaid Expenses 387,814 252,135 288,558 288,797 137,829Total Current Assets 9,523,073 5,391,904 4,086,513 4,785,247 4,394,480Non-Current Assets: Designated Investments 2,596,445 2,128,411 2,144,295 1,650,863 1,032,637 Land, Building and Equipment Net of Depreciation 21,603,389 18,555,931 18,681,520 14,633,147 10,521,788 Other Non-Current Assets 516,053 350,049 448,137 350,260 244,121Total Non-Current Assets 24,715,887 21,034,391 21,273,952 16,634,270 11,798,546TOTAL ASSETS $34,238,960 $26,426,295 $25,360,465 $21,419,517 $16,193,026

LIABILITIES AND NET ASSETSCurrent Liabilities: Accounts Payable $123,963 $183,161 $178,817 $330,481 $209,306 Accrued Payroll and Employee Benefits 2,204,611 2,310,913 2,013,647 1,666,211 1,292,862 Accrued Sales Tax 127,094 131,108 117,843 106,434 86,696 Current Portion of Long-Term Debt 1,226,841 833,954 795,569 511,953 403,838 Other Current Liabilities 544,870 474,621 506,898 454,984 341,971Total Current Liabilities 4,227,379 3,933,757 3,612,774 3,070,063 2,334,673Long-Term Liabilities: Other Non-Current Liabilities 536,816 290,279 382,392 307,594 199,226 Long-Term Debt 8,808,082 5,322,301 6,144,669 4,728,702 3,242,010Total Long-Term Liabilities 9,344,898 5,612,580 6,527,061 5,036,296 3,441,236TOTAL LIABILITIES 13,572,277 9,546,337 10,139,835 8,106,359 5,775,909Net Assets: Board Designated 2,596,445 2,128,411 2,144,295 1,650,863 1,032,637 Other Unrestricted 18,062,080 14,746,547 13,076,335 11,662,295 9,384,480 Temporarily Restricted 8,158 5,000 0 0 0TOTAL NET ASSETS 20,666,683 16,879,958 15,220,630 13,313,158 10,417,117TOTAL LIABILITIES AND NET ASSETS $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.

FinancialInformation

Operating Fund and Five-Year Financial Summary

GROUPED REVENUE 2009 2008 2007 2006 2005 Sales Program $45,502,096 $41,008,826 $36,995,210 $30,375,737 $26,521,355 Career Solutions 320,922 253,493 240,567 259,984 233,563 Commercial Services 46,680 203,979 343,572 543,141 406,083 United Way Support and Other Contributions 69,238 96,099 230,498 449,173 155,930 Investment Income 117,448 73,874 121,596 192,119 71,035 Market Value Increase (decrease) of Investments 214,795 (287,110) 89,572 53,580 12,520 Other 121,348 128,225 139,965 2,977 263TOTAL REVENUE $46,392,527 $41,477,386 $38,160,980 $31,876,711 $27,400,749

GROUPED EXPENSES 2009 2008 2007 2006 2005 Sales Program $34,859,833 $32,260,178 $29,385,201 $23,642,126 $20,946,735 Career Solutions 2,923,032 2,706,009 2,260,753 1,391,781 1,085,731 Commercial Services 55,260 247,498 352,621 526,389 449,587 General and Administrative 4,770,835 4,609,373 4,254,933 3,420,374 3,379,694TOTAL EXPENSES $42,608,960 $39,823,058 $36,253,508 $28,980,670 $25,861,747

Summary Statement of Revenue and Expenses

REVENUE SOURCES 2009 Amount % of Total Sales of goods contributed by the community $45,502,096 98.1% Fees and grants for professional rehabilitation services 320,922 0.7% Contract work done for local businesses 46,680 0.1% United Way support and other contributions 69,238 0.1% Investment income 117,448 0.3% Market value increase (decrease) of investments 214,795 0.5% Other 121,348 0.3%TOTAL REVENUE $46,392,527 100.0%

DIRECT EXPENSES 2009 Amount % of Total Sales program $34,859,833 81.8% Career Solutions 2,923,032 6.9% Commercial Services 55,260 0.1% General and administrative 4,770,835 11.2%TOTAL EXPENSES $42,608,960 100.0%

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

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Chairman:John W. Stone, III, PartnerWhite & Reasor, PLC

Vice Chairman:Robert McNeilly, III, President and CEOSunTrust Bank

Secretary:Donna B. Yurdin, OwnerCredo Management Consulting

Treasurer:Kathryn S. Gibson, Accounting ManagerVanderbilt University Medical CenterDepartment of Finance

Legal Counsel:Christopher S. Dunn, AttorneyWaller, Lansden, Dortch & Davis, LLP

Goodwill Officers:David Lifsey President and CEOGoodwill Industries of Middle Tennessee, Inc.

Tammy GlassVice President of FinanceGoodwill Industries of Middle Tennessee, Inc.

Betty JohnsonVice President of Employment ServicesGoodwill Industries of Middle Tennessee, Inc.

J. B. BakerPresident & CEOVolunteer Express, Inc.

J. Mike BishopAsst. Vice PresidentPharmacy ServicesHealth Trust Purchasing Group

Caroline G. Blackwell, Director of Multicultural AffairsUniversity School of Nashville

Steele ClaytonPartnerBass, Berry & Sims, PLC

David CondraChairmanDalcon Enterprises

Gary W. CordellConsultant

Robert W. DuthieFounderDuthie Associates, Inc.

Deborah Y. FaulknerInspector GeneralState of Tennessee - TennCareJohn C. GreerVice PresidentTennComm, LLC

Jeffrey A. HoffmanRichelieu America, Ltd.

Philip G. HullSenior ConsultantVACO Resources

Decosta JenkinsPresident & CEONashville Electric Service

Robert B. KennedyVice PresidentFirst Horizon Insurance Group, Inc.

Fred T. McLaughlin, Trustee Branch Manager, Sr. VP InvestmentsRobert W. Baird & Co., Inc.

Ty OsmanPresidentSolomon Builders

Thomas S. StumbPresidentNashville Bank & Trust

Kathryn I. ThompsonFounder/Director of ResearchTRG-Thompson Research Group

John TishlerChairmanWaller Lansden Dortch & Davis, LLP

Dr. George Van AllenPresidentNashville State Community College

John Van MolPresident & CEODye, Van Mol & Lawrence

Sandra L. WisePresidentArgosy University

Boardof

Directors

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Design | Scott BryantCopy | Suzanne Kay-Pittman

Advisors | Karl Houston, Niketa Hailey-Hill, Ashley Deets, Jeff Carter and Natisha Moultry

Printing | Douglas Printing

Acknowledgments

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