Goodwill Industries of Central Indiana, Inc.

2013 REPORT TO THE COMMUNITY

For years, I’ve considered the most unique aspect of Goodwill to be the way and the extent to which we blend business with a social mission. More recently, though, perhaps equally unique is the extent to which we are leveraging our resources and capabilities with those of others to create new opportunities that benefit people and communities. I’ll explain.

Many social problems have become worse over the last 40 years, despite massive increases in public spending and a huge proliferation of not-for-profit organizations. Part of the problem lies in the “silo” structure of the public sector and the fragmented nature of the not-for-profit sector. In many cases, organizations are doing very good work addressing pieces of a larger problem, but seldom in our country have we been connecting the pieces well. As a result, we have not been solving the big problems.

Much of our work at Goodwill is now focused on connecting pieces. Some of those exist within our own organization, and some involve other organizations that have complementary capabilities. We see numerous examples of this, as Goodwill retail employees and Nurse-Family Partnership (NFP) moms enroll in The Excel Center or begin working toward a certification through a class taught by Ivy Tech or Vincennes University.

More examples: Eskenazi Health refers expectant mothers to NFP and also hires graduates of The Excel Center. The Day Nursery Association in Indianapolis offers employment to NFP moms and helps them work toward certifications. And, graduates of Goodwill-operated schools are becoming employed with help from TalentSource, Goodwill’s job preparation and placement service.

The extent to which Goodwill is evolving into an array of networks that link services across organizational boundaries in a holistic, often whole-family manner is unique. This approach brings high-quality services together to make more effective use of existing community resources and result in greater lasting impact. With sufficient scale, this approach can play a role in reducing generational poverty.

These exciting developments are made possible by the tremendously talented and dedicated people we have in our organization and the relationships they have with people in many other fine organizations in all sectors. It’s also important to note that these and other developments are built on a solid financial foundation that depends largely on our retail system — a system that provides jobs for 1,300 people whose options are limited by disability or other significant barrier. And that, in turn, is dependent on donations of used goods from and purchases by hundreds of thousands of central Indiana residents.

Thank you for your support of our work to benefit people and communities.

PRESIDENT'S MESSAGEPRESIDENT'S MESSAGE

Jim McClellandPresident and CEO

Jim McClelland, President and CEO

Jamerous worked the entire time he attended classes, holding two jobs at one point.

JAMEROUS GILLIAM

meet

JAMEROUS GILLIAM

Hear more from Jamerous at GOODWILLINDY.ORG/COMMUNITY

Jamerous left high school in 2006 with a completion certificate but didn’t give up on

graduating. He didn’t accept his learning disability as a barrier. In 2012, he came to The Excel Center, Goodwill’s high school for adult learners. In just two

years, Jamerous earned his high school diploma, two industry certifications and six college credits. Now, he’s working with TalentSource, Goodwill’s

placement initiative, to find full-time employment.

THE EXCEL CENTER

The future, after The Excel Center, is bright. There are so many opportunities now. There are just so many doors.

A HIGH SCHOOL DIPLOMA IS LIKE A SKELETON KEY.

A HIGH SCHOOL DIPLOMA IS LIKE A SKELETON KEY.

—Jamerous Gilliam

Most of us, when we face setbacks in life, we turn away and find something else to pursue or head in another direction. That’s not how Jamerous responded.

—Brent Freeman, Director, The Excel Center – Meadows

413 FAMILIES used the sites’ free drop-in child care centers to provide their children a safe learning environment.

NEW SITES OPENED on Indianapolis’ west side and in

Kokomo, Lafayette and Richmond.

GRADUATED IN 2013.

HAVE GRADUATED SINCE THE SCHOOL OPENED IN 2010.

163 GRADUATES

earned an industry

certification or college credits.

164 GRADUATES

had post-secondary plans, most in

2- or 4-year college programs.

STUDENTS

424

250

91 employment placements started at an average hourly wage of

$9.49.

IN 2013, ENROLLMENT REACHED

ACROSS NINE LOCATIONS.

nearly students3,000

$9.49.

INDIANAPOLIS METROPOLITAN HIGH SCHOOL MELISSA HORN

meetMELISSA HORN

Hear more from Melissa at

GOODWILLINDY.ORG/COMMUNITY

Melissa excelled at Indianapolis Metropolitan High School, Goodwill’s school for grades 9–12, taking every available advanced placement course. A natural leader, she was involved in soccer, student council and more. Melissa even led students to Haiti to install water purification systems in orphanages. As valedictorian and a student leader, Melissa has inspired peers and instructors alike.

Melissa’s strength, integrity, academic achievements and passion for service are highly motivating to me as a teacher and a person.

SHE’S GOING TO LEAVE HER MARK ON THE WORLD WHEN SHE LEAVES THE MET.

—Jessica Ungerecht, Instructor, Indianapolis Metropolitan High School

After I graduate, I want to go to college, definitely. I want to study education. It interests me because you’re ultimately changing someone’s life.

A GOOD EDUCATION IS THE BASIS FOR A LOT IN LIFE.

—Melissa Horn

A GOOD EDUCATION IS THE BASIS FOR A LOT IN LIFE.

SHE’S GOING TO LEAVE HER MARK ON THE WORLD WHEN SHE LEAVES THE MET.

Melissa’s many extracurricular activities also included choir and theater.

79 students graduated in 2013, bringing

the total number of graduates to 430 since the school opened in 2004.

44 GRADUATES earned college credits or an

industry certification.

graduates had post-secondary plans, including vocational and 2- or 4-year college programs.

1,180 with a

disability

Hear more from Matthew at

GOODWILLINDY.ORG/COMMUNITY

Matthew came to Goodwill in 2006 through a program to help young people find career and education resources. He was hired by Goodwill’s Commercial Services division and has been with Goodwill ever since. When Matthew learned about Goodwill’s education options, he switched from pursuing a GED to taking classes at The Excel Center. Four days a week for two hours each day—after work—he attended class until he completed the remaining requirements to earn his high school diploma.

Customers see Matthew every day. He does all the cleaning, dusting, trash, vacuuming, floor care and much more. Customers

absolutely love him. He describes them as his other family.

MATTHEW JONESmeetMATTHEW JONES

EMPLOYMENT AND RELATED SERVICES

Undeterred by his learning disability, Matthew graduated from The Excel Center in 2013.

Matthew is responsible for maintaining several Goodwill federal contract sites, including the FAA air traffic control tower at Indianapolis International Airport.

THAT’S HOW MUCH OWNERSHIP

AND PRIDE HE TAKES IN WHAT

HE DOES. —Breeanna Bowker, Training Supervisor,

Goodwill Commercial Services

WHAT MOTIVATES ME TO COME TO WORK EVERY DAY IS THE PEOPLE I’M AROUND.They don’t make me feel like I’m a custodian; they make me feel like I’m part of the team, and they’re always there to encourage me.

—Matthew Jones

685 PEOPLE

$8.95.

THAT’S HOW MUCH OWNERSHIP

AND PRIDE HE TAKES IN WHAT

HE DOES.

WHAT MOTIVATES ME TO COME TO WORK EVERY DAY IS THE PEOPLE I’M AROUND.

INDUSTRY CREDENTIALS AND CERTIFICATONS.

685 PEOPLEfound employment after receiving Goodwill services. Their average starting hourly wage was

996 without a high school diploma

321 with a criminal background

447 Goodwill employees, students and graduates enhanced their

employability by earning

have one or more barriers to employment, including:

$8.95.

1,988 OF GOODWILL S EMPLOYEES

1,988 OF GOODWILL'S EMPLOYEES

Katherine began working for Goodwill Commercial Services in 2008. In 2013, she moved to a position at Goodwill’s College Park store in Indianapolis. Katherine, who has overcome developmental and physical challenges, helps sort clothes that go unsold on the sales floor by pulling items tagged with a certain color. Always ready with a thumbs-up or high five, she brings a lot of energy to her store and other pursuits, especially her Special Olympics activities.

People donated clothes and goods to Goodwill

1.9 MILLION times last year.

meet

KATHERINE CUSTERKATHERINE CUSTER

DONATIONS TO GOODWILL

Hear more from Katherine at

GOODWILLINDY.ORG/COMMUNITY

KATHERINE DOES A TERRIFIC JOB. She’s very fun and enthusiastic to work with. It’s joyous to go in and work with her. If there’s something we need to work on — we work on it. She fixes it, and we move on.

—Kristin Burch, Retention Specialist, Goodwill

KATHERINE DOES A TERRIFIC JOB.

I LIKE TO WORK WITH PEOPLE, AND I LOVE WORKING AT GOODWILL.

—Katherine Custer

I LIKE TO WORK WITH PEOPLE, AND I LOVE WORKING AT GOODWILL.

Katherine is a dedicated bowler, basketball player, swimmer and snowshoer. Recycling and salvage

operations supported jobs for MORE THAN 100 INDIVIDUALS

—the majority of whom have significant employment barriers.

25 MILLION POUNDS of clothing and other items that went unsold in stores were sorted for secondary market sales.

Recycling saved Goodwill $330,000 in waste-removal costs and generated

revenue for mission services.

GOODWILL RECYCLED 11 MILLION POUNDS of plastics, metals, televisions and more, diverting these items from landfills.

Nurse-Family Partnership (NFP) served 502 active families in 2013.

NURSE-FAMILY PARTNERSHIP

ELIZABETH ARAGONmeetELIZABETH ARAGON

Learn more about Elizabeth at

GOODWILLINDY.ORG/COMMUNITY

Elizabeth enrolled in Nurse-Family Partnership (NFP) during high school. She returned to school after her baby was born, but a traditional approach didn’t fit her situation any more. Elizabeth learned about The Excel Center through her nurse, and instead of dropping out, she transferred. She participates in the certified nursing assistant program and expects to graduate in 2014. Elizabeth works full time at a recycling operation in Plainfield and hopes to be a nurse someday. Her son, Anthony, is now 16 months old.

Anthony’s father, Jorge, often joins in the nurse’s home visits. He, too, works and attends The Excel Center. The family lives together with relatives.

For being as young as she is, Elizabeth has an amazing ability to solve problems. She weighs all her choices and the impact they could have on her family. I’m so proud of her.

—Lisa Sledge, RN, Nurse-Home Visitor, Nurse-Family Partnership

80 NFP MOMS

were enrolled in one of Goodwill’s schools, were employed by Goodwill or

used Goodwill’s placement services.

A CULTURALLY DIVERSE

31

FUTURE SAVINGS DUE TO IMPROVED HEALTH OUTCOMES helped NFP achieve a benefit–cost ratio.

nursing staff of

included five Spanish speakers.

KEY INDICATIONS

OF IMPROVED OUTCOMES:

89% were born

at a healthy weight

90% of babies were born

at full term

Elizabeth also referred her best friend to NFP and The Excel Center.

94% child

immunization rate

21% reduction in

smoking

THE BEST THING ABOUT BEING A MOM IS SPENDING TIME WITH MY BABY. I love taking care of Anthony. I have to be a good role model, so when he grows up, he’ll say, ‘I want to go to school.’

—Elizabeth Aragon

50% reduction in alcohol use

$5.70 : $1 31

722 families have been served since Goodwill brought NFP to Indiana in 2011.

THE BEST THING ABOUT BEING A MOM IS SPENDING TIME WITH MY BABY.

Goodwill Industries 57% Goodwill Foundation 31% Goodwill Education

Initiatives 10% GW Commercial Services 2%

ASSET DISTRIBUTION BY GOODWILL-RELATED ENTITY

Retail 60% Education Services 19% Commercial Services 14% Workforce Services 7%

PROGRAM EXPENSES

Retail Sales -New & Used Goods 64%

Education Services 17% Commercial Services 11% Workforce Services 5% Community Support 2% Other 1%

SOURCES OF REVENUE

Goodwill Industries of Central Indiana, Inc.

GW Commercial Services, Inc.

Goodwill Education Initiatives, Inc.

Goodwill Industries Foundation of Central Indiana, Inc.

Balance Sheet Goodwill Consolidated December 28, 2013 Dollars in Thousands

AssetsCash $5,888

Accounts Receivable 4,466

Inventories 4,279

Land, Buildings & Equipment, Net 47,798

Investments Held 34,811

Other Assets 853

Total Assets $98,095

Liabilities

Accounts Payable & Accrued Liabilities $13,464

Bonds & Notes Payable 9,511

Total Liabilities $22,975

Net Assets $75,120

Total Liabilities and Net Assets $98,095

Income Statement For the Year Ended December 28, 2013

Dollars in ThousandsRevenues

Retail Sales-New & Used Goods $80,585

Commercial Services 14,389

Workforce Services 6,894

Education Services 21,073

Community Support 1,987

Other 1,371

Total Revenues $126,299

ExpensesProgram Expenses $108,724

General & Administrative 13,673

Fundraising 517

Total Expenses $122,914

Operating Income $3,385

Unrealized Gain on Investments 3,327

Realized Gain on Investments 1,232

Gain on Interest Rate Swap 204

Net Income $8,148

2013 Summary Financial StatementsFINANCIALSFINANCIALSGoodwill Industries of Central Indiana, Inc.GW Commercial Services, Inc.Board of DirectorsMaribeth Smith, ChairDarrell E. Zink, Vice ChairJ. Scott Enright, SecretaryMark Denien, TreasurerJames M. McClelland, PresidentDaniel J. Riley, Assistant Secretary/TreasurerMike BlakleyPeggy BoehmJustin ChristianGordon M. GrahamThomas A. KingRose MaysOwen B. Melton, Jr.Michael O’ConnorDon PalmerThomas H. SamsJean Wojtowicz

Ex-Officio DirectorsElaine E. BedelC. Perry Griffith, Jr.

Honorary DirectorsC. Perry Griffith, Jr.Susan B. HetheringtonBruce M. JacobsonJames T. MorrisFred C. Tucker, IIIRichard A. West

Goodwill Education Initiatives, Inc.Board of DirectorsC. Perry Griffith, Jr., ChairGina DelSanto, PhD, Vice ChairMichael O’Connor, SecretaryJames M. McClelland, PresidentJuan GonzalezJeffrey A. HarrisonDon PalmerDoris PryorFred C. Tucker, III Honorary DirectorGwen A. Fountain, PhD

Goodwill Industries Foundation of Central Indiana, Inc.Board of DirectorsElaine E. Bedel, ChairOwen B. Melton, Jr., Vice ChairJohn F. Hirschman, SecretaryMatt B. Carter, TreasurerJames M. McClelland, PresidentDaniel J. Riley, Assistant Secretary/TreasurerMalcolm W. ApplegateJonathan L. BirgeBetsy DustmanKeith FallerGwen A. Fountain, PhDOtto N. Frenzel, IVGordon M. GrahamC. Perry Griffith, Jr.Melina KennedyThomas A. KingWendy LarmanWilliam K. McGowan, Jr.Ralph MeyerAndrew MorrisJohn D. PerrySteven C. RobinsonThomas H. SamsFred C. Tucker, IIIW. Michael WellsElizabeth Bracken Wiese

Ex-Officio DirectorsMark DenienJ. Scott EnrightMaribeth SmithDarrell E. Zink

LEADERSHIPLEADERSHIP

goodwillindy.org 317.524.4313

For a list of financial contributors, please visit goodwillindy.org/community.

THANK YOU TO OUR 2013 SUPPORTERS.