2014 ANNUAL REPORTGoodwill Industries, Inc.

Serving Eastern Nebraska and Southwest Iowa

For more than 80 years, Goodwill Industries Inc., Serving Eastern Nebraska and Southwest Iowa, has been changing lives and strengthening the community through education, training and work. We continued this work in 2014, and achieved many milestones along the way:

- Enrolled 1,360 people in our eight programs, and 531 jobs were found with the help of Goodwill- 31,262 employment services were provided at the Goodwill-operated Heartland Workforce Solutions Center – an American Job Center - Launched three new programs: GoodHire, YouthBuild South and Project Employment- Retail revenue grew to $20.5 million, and set a single day record of $83,351 on February 22- The agency’s 17th retail store opened in South Papillion- Nine new material donation pods were placed in the community- Initiated a “Round It Up” campaign in Goodwill retail stores, generating $42,000- Commercial Services Division grew by nearly 20 percent

The organizational vision of Goodwill is to eliminate unemployment among people who want to work. Last years achievement’s brought us closer to making this a reality than ever before. Join us as we highlight a successful 2014, and celebrate the many ways Goodwill is good for you, great for the community.

LETTER FROM LEADERSHIP

President and CEO Frank McGree and Chairman of the Board Mark Brasee

Frank J. McGreePresident and CEO

Mark L. BraseeChairman of the Board

Mark L. BraseeChairman of the Board

Joseph R. LempkaVice Chairman

Mark L. StokesSecretary

Robert J. MitchellTreasurer

Elizabeth A. MazzottaChairman Emeritus

Frank J. McGreePresident and CEO

MembersDavid M. AndersonBrian M. Csipkes

Richard A. FrandeenMichael P. Geis

Ronald C. JensenLarry R. King

Sandra A. LaneJoseph W. Lang

Othello Meadows IIIR.J. Neary

Joseph J. OlsenDaniel A. PadillaCarol L. RussellH. Daniel SmithDaniel G. Wenzl

Life MembersJ. Timothy Daugherty

Gerald C. GrayMary Pat Heck

James L. MounceDolores C. OwenWilliam B. PrestonWilliam E. Ramsey

Charles V. Sederstrom, Jr.Wayne E. Simmonds

Karen A. SteinJoseph T. Sullivan, Jr.William N. VobejdaTommy L. WhalenAndrew WilliamsGary R. Yocum

2014 BOARD OF TRUSTEESFrank McGree

President and CEO

Andy BradleyExecutive Vice President

Randy ParksChief Operating Officer

Pauli BishopChief Financial Officer

La Ronda BirchSenior Director of Human Resources

and Quality Assurance

Kent CanigliaSenior Director of Risk Management

Kay HilgenkampSenior Director of Retail Sales

Linda KizzierVice President of Employment and Training

Todd MilbrandtVice President of Federal Contracts

Dave PfefferVice President of Human Resources

Rita Hamele CrumDirector of Marketing

Justin DoughertyDirector of Workforce Services

Shirley HallDirector of Retail Operations

Brent KosterDirector of Planning

and Business Development

Tobi MathouserDirector of Federal Contracts

Shannon McGreeDirector of Retail Sales

Erin Swanson RussellDirector of Development

Gordon ScheetDirector of Information Technology

Ross TremaineDirector of Facilities

EXECUTIVE STAFF

FINANCIALSTATEMENT

Retail salesFederal service contract feesContract work for local companiesGrants and fees for employment and trainingSpecial events revenueInvestment and miscellaneous income

Operating Revenue

Personnel: wages, payroll taxes, and benefitsRent, utilities, and facilitiesDepreciationSuppliesMarketing and advertisingProfessional feesTransportationNational organization duesOther expenses

Total Expenses

Net Operating Income/(Loss)

Other Income/Expense:Increase in market value of investments Contributions

Net Gain

$20,575,322$4,128,219

$786,789$3,268,695

$98,295$69,363

$28,926,683

$17,661,520$5,066,723$1,740,441$2,166,852

$471,509$1,070,456

$387,796$312,088$364,503

$29,241,888

($315,205)

$179,343$713,682

$577,820

2014

$20,130,528$4,040,040$622,655$3,418,409$79,153$94,608

$28,385,393

$17,181,045$4,730,517$1,607,184$1,881,288$458,309$1,090,270$309,896$308,566$204,156

$27,771,231

$614,162

$415,506$415,528

$1,445,196

2013

per completed audit by KPMG LLP

We extend sincere thanks to all those who made charitable gifts to Goodwill Industries, Inc., Serving Eastern Nebraska and Southwest Iowa.

$25,000+Dorothy B. Davis Family FoundationThe Dr. C.C. & Mabel L. Criss Memorial FoundationThe Gary & Mary West FoundationThe Hawks FoundationKiewit Companies FoundationLeon & Adah Millard FoundationThe Lozier Foundation*Mutual Of Omaha FoundationPeter Kiewit FoundationThe Sherwood FoundationWilliam & Ruth Scott Family Foundation*

$10,000+First National BankJohn K. & Lynne D. Boyer FoundationBruce LauritzenSunny & Denny LundgrenWoodmen of the World*Yahoo Employee Foundation

$5,000+America First FoundationBank of the WestCharles & Mary Heider Family FoundationJohn & Trish FaheyGreat Western BankDan & Jennifer Hamann*Frank & Kendra McGree*Performance Auto GroupStanley & Dorothy Truhlsen*Women's Fund of Omaha

$2,500+James Alvarez*American National Bank

Andy & Jenny Bradley*Eletech Inc.Gallagher Grace/Mayer Insurance Agency, Inc.Joe & Kacey Lempka*Deborah MacDonald*Omaha Community FoundationHelen Pearson*Mark & Donelle Stokes*Terry McGill, Inc*Tommy Whalen*

$1,000+ACCESSbankAcorn PlumbingAlegent HealthAONBaird Holm LLPPauli Bishop*Blue Cross Blue Shield of NebraskaMark & Mary Lou Brasee*Ellen Buglewicz*CasslingControl Management, Inc.Coventry Health Care/AetnaEgan Supply Co.Richard & Rosemary Frandeen*Frankel Zacharia LLCFraser Stryker Jerry Gray*The Harry A. Koch Co.Mary Pat & Steve Heck*Investor's RealtyJ.E. Dunn Construction Jackson Lewis P.C.Larry & Sandy King*KPMGJoseph & Molly Lang*Lone Mountain Truck LeasingElizabeth & Larry Mazzotta*McGrath NorthShannon McGree*Midlands Carrier TransicoldTodd & Ann Milbrandt*Millard Lumber Inc.Miller Electric CompanyRobert & Rondi Mitchell*Mutual of Omaha BankR.J. & Liz Neary*Omaha Neon Sign CompanyOSI Industries/Oakland FoodsOutlook Nebraska, Inc.Performance Toyota Scion of LaVistaLena Pflanz*Primrose School of LaVistaRDG Planning & DesignRenaissance Financial Corporation

Russ's EnterprisesErin & Joel Russell*Rick & Carol Russell*Constance Ryan*Douglas Schueths*Charles Sederstrom*SEi Security Equipment, Inc.Smith Gardner Slusky LawDavid Pfeffer & Stacy Scholtz*Standard Heating & Air ConditioningTD AmeritradeThompson, Dreessen & Dorner, Inc*UMB BankValmont Industries, Inc.Michael & Gail Yanney*

$500+David & Melissa Anderson*LaRonda & Gregory Birch*Bob & Barbara Goodman*Shirley Hall*Mike Homa*Ronald & Therese Jensen*Jensen Tire & AutoJR & Alison Johnson*Kiewit Building GroupLinda & Bruce Kizzier*Brad & Amy Knuth*Koley JessenL&M ConstructionSandy Lane & Garrett Brucker*Mutual of Omaha Insurance CompanyJoseph & Anne Olsen*Dolores C. Owen*Pay Less Office Products, Inc.PhenomblueRichard & Joan Pitner*Quantum Real EstateSignature PerformanceSpin Linen Management CompanyKa & Deborah Squire*Joe & Ruth Sullivan*Adam Walker*Kevin Welsh*Dan Wenzl*Doug & Elaine Wilwerding*

*Denotes Goodwill Society members

For the complete listing of our 2014 financial contributors, please visit goodwillomaha.org.

FINANCIALCONTRIBUTORS

DOROTHY JOHNSTON2014 MARCO-MEYER ACHIEVER OF THE YEAR

Dorothy Johnston has been a part of the Goodwill family for more than 15 years. During high school, she enrolled in Goodwill’s Work Experience program. Along with other high school students with special needs, Johnston rotated among various work areas throughout the Goodwill organization gaining on-the-job experience. Work areas included custodial, clerical and production all of which eventually prepared her for a job in the community.

Upon graduating from school, Johnston needed to find work. There was an open position in Goodwill’s AbilityOne program for a custodian. She applied and was hired. Now in her 30s, Johnston continues to work as a custodian for Goodwill’s federal contract at Offutt Air Force Base.

“She’s a vital part of the team,” says Project Manager Phil Johnson. “Most recently we moved her from a team supported work environment to the Daycare area where she works primarily alone. Dorothy has exceeded my expectations and has done a phenomenal job fulfilling her duties with minimal supervision.”

Today, Johnston lives in a group home. With help from a caretaker, she is responsible for paying her own bills and grocery shopping.

If you ask her what her favorite thing to do is, she quickly responds with, “Work!” Johnston credits Goodwill and a team of dedicated supervisors and teachers for giving her a chance and seeing the potential she had to offer.

“Goodwill is successful because of people like Dorothy. You’re not going to find a more dedicated employee,” says Johnson. “When she excels, we all excel as an agency.”

MAURISA MACHACHA2014 ACHIEVER OF THE YEAR

Maurisa Machacha was born in Nebraska while her mother was attending the University of Nebraska - Lincoln on a student visa. Soon after her birth, her family moved to Canada where Machacha and her siblings were raised. When she was 18, her mother’s expired visa forced the entire family to be deported to Africa. Since Machacha was considered an adult and the only one born in the states, she was bussed to Nebraska, a place she had not been since birth.

Homeless and in need of extensive support, Machacha came to Goodwill. She enrolled in the agency’s Partnership for Youth Development, a program that helps young people earn a high school diploma and secure employment.

According to Youth Partnership Coordinator Tiffany Drieling, “When I met Maurisa I thought she was a beacon of hope, a real inspiration. Not only that, but she was sharp. Any employer would be lucky to have her.”

During her time in the Partnership program, Machacha’s goal was to obtain her diploma. Between studying and testing, she gained valuable experience working in a Goodwill retail store.

In early 2015, Machacha earned her diploma. She plans to attend college and said she sees herself as a flight attendant or a small business owner.

After a heartbreaking string of events, she overcame more than many of us have in her 19 years. Words like courageous, brave and inspiring all describe Machacha. She is an example of what a young person can achieve when faced with adversity.

HY-VEE2014 COMMUNITY PARTNER

We’ve all heard it…”Where There’s a Helpful Smile in Every Aisle,” Hy-Vee’s long-time advertising slogan first used in the ‘60s.

Today Hy-Vee, an employee-owned company, has 235 locations throughout the Midwest. With sales of more than $8 billion annually, Hy-Vee ranks among the top 25 supermarket chains and the top 50 private companies in the United States.

Hy-Vee was named Goodwill’s 2014 Community Partner during the agency’s Legacy of Hope event.

When someone completes a Goodwill program, the next step is job search assistance. This is where companies like Hy-Vee come in and support the Goodwill mission. By partnering with area businesses, Goodwill is able to help individuals find employment in the community. Goodwill first started partnering with Hy-Vee in 2005 when the grocery store began hiring participants from our Work Experience program.

Goodwill’s Work Experience program provides job readiness training for high school students with special needs. Encouragement, coaching and self-advocacy are tools trainers use to assist students to see their potential. With this foundation, Work Experience students use their newly-honed work skills to get jobs in their communities. To date, more than ten Hy-Vee locations have hired individuals with special needs from Goodwill employment programs. “I’ve been hiring people with disabilities my entire 23-year career with Hy-Vee,” said Fremont Store Director Mike Christensen. “I have a son with autism. There is a great deal of value in finding people and matching them up with a skill level that is right for them. It benefits us as a business and our customers like to see us hire people with disabilities. The pride employees take in having a job is unbelievable. In some cases, it’s the most important thing in their life.”

Hy-Vee Store Director Mike Christensen with Work Experience Coordinator Holly Schwietz

Metro buses cleaned

30,810square feet cleaned daily in our

federal contract buildings

1.3 million

wages earned byWork Experience students

$178,846.50

retail sales transactions1,424,516

Goodwill is accredited with the Commission on Accreditation

of Rehabilitation Facilities

CARF ACCREDITED

lawn services provided through Grounds Maintenance

by Goodwill

2,196BUSINESS &THE ECONOMY

1.3 million

increase in the number of Goodwill employees

3%

total wages and benefits paid to Goodwill employees

$14,897,679.64

different employers hired Goodwill program participants

337

hiring events held at Goodwill or Heartland Workforce

Solutions — an AmericanJob Center

81

total retail donations

451,506

AbilityOne worksites

8community donation drives

16

pounds of donations collected at community donation drives

476,172

Girl Scouts participated in the Good Turn for Goodwill

donation drive

681

GOODWILLIN THE

COMMUNITY

raised for our mission through the “Round It Up” campaign

$42,572.12 education and training programs

11

construction sites that YouthBuild participants worked

on in our community

10

local counties thatGoodwill serves

29

attended donation centers and pods in the community

13TOMMY WHALEN | 2014 PERSON OF GOODWILLTommy Whalen was taught from a young age the importance of giving back. He grew up seeing firsthand the struggles and setbacks his younger sister endured living with a disability. She has been his lifelong inspiration of advocating for those with special needs.

Whalen serves on numerous boards and volunteers countless hours helping those in need.He believes in doing what he can to provide people with disabilities the opportunities to have a quality life.

"We need to focus on greater awareness and invite the community to get involved in organizations like Goodwill," said Whalen. "Most people want to be self-reliant. Some just need a helping hand to make it happen."

He continues to demonstrate exemplary work on behalf of disadvantaged populations and individuals overcoming barriers to self-sufficiency. This is why Goodwill honored Whalen with the agency's distinguished 2014 Person of Goodwill award.

new education andtraining programs in 2014

5local Goodwill retail stores

17

pounds of cardboard recycled

495,508

pounds of recycled computers and electronics

968,127

HELPINGOUR

ENVIRONMENT

pounds of recycled materials such as paper and plastics

565,750

pounds of clothing and textiles kept out of landfills

5,841,547

MARY PAT HECK | 2014 HALL OF FAMEMary Pat Heck has a long history serving the Omaha community with her background and expertise in financial services. As a Senior Financial Services Representative for Heck & Moeller Financial Services, she also has a long history with Goodwill. Heck served on Goodwill’s Board of Trustees from 1996 – 2004.

Heck knows first hand the difficulties that come with living with a disability. Diagnosed with dyslexia as an adult, she has struggled for most of her life with the disorder. Despite the challenges, Heck continuesto have a positive outlook on life.

"Every day when I wake up it's about what can I do for someone else. You begin to get back so much. We're all on this earth for such a short time. Why not make it a better place?"

Heck’s dedication to Goodwill’s mission is the reason why she was inducted into Goodwill’s Hall of Fame in 2014.

495,508

968,127

participants enrolled in Goodwill programs

1,360amazing Goodwill employees

663

Goodwill employees with disabilities or barriers

153

ABOUTOUR

PEOPLE

credentials earned byprogram participants

178 jobs in the community were found with the help of Goodwill

programs and services

531

basic job-readinessservices provided

33,424average hourly wage of

participants placed in jobs throughout the metro

$10.18

RETAIL STORESBenson Park Plaza

4805 North 72nd StreetOmaha, NE 68134

402.231.1966

West Center8310 Spring PlazaOmaha, NE 68124

402.397.0542

Harris Center2221 North 109th Street

Omaha, NE 68164402.493.3238

Southwestern Plaza14215 Hillsdale Circle

Omaha, NE 68137402.894.2357

156th & Maple15455 Ruggles StreetOmaha, NE 68116

402.965.3588

180th & Q18125 R Plaza

Omaha, NE 68135402.895.0651

78th & Dodge201 North 78th Street

Omaha, NE 68114402.393.2800

Bellevue2303 Towne Centre Drive

Bellevue, NE 68123402.292.0475

Papillion8507 Giles Road

Papillion, NE 68046402.592.2751

South Papillion704 Gold Coast DrivePapillion, NE 68046

402.331.1112

Blair1364 Washington Street

Blair, NE 68008402.533.8000

Gretna

11722 Standing Stone DriveGretna, NE 68028

402.332.2707

Council Bluffs1850 Madison Avenue

Council Bluffs, IA 51503712.328.8911

Fremont3175 East Elk LaneFremont, NE 68025

402.727.5007

SPECIALTY STORESThe Goodwill Coffee House

4805 North 72nd StreetOmaha, NE 68134

402.573.4716

Reserve99501 South 13th Street

Omaha, NE 68102402.342.4102

GoodBytes4115 South 72nd Street

Omaha, NE 68127Store: 402.935.4552

Technicians: 402.935.4553

Goodwill WearHouse4115 South 72nd Street

Omaha, NE 68127402.731.4888

ATTENDED DONATION CENTERS

Storefront10749 Mockingbird Drive

Omaha, NE 68127

Donation Trailer5005 Grover StreetOmaha, NE 68106

Donation Trailer3424 North 90th Street

Omaha, NE 68134

Donation Trailer4801 Q Street

Omaha, NE 68117

RETAIL OPERATIONS CENTER4115 South 72nd Street

Omaha, NE 68127

Find out more aboutour locations at

goodwillomaha.org

RETAILLOCATIONS

33,424

Jennifer Rohr has a wealth of knowledge when it comes to human resources. She knows the agency’s policies like the back of her hand. And she’ll resolve employee- related issues without hesitation. As Goodwill’s Human Resources Manager, Rohr wears many hats striving to make all of the jobs here at Goodwill better. Her main areas of responsibility include recruitment, affirmative action and diversity initiatives.

Rohr is definitely hardworking, dedicated to her job and never without a smile. It’s her caring nature and passion for Goodwill’s mission that inspired her fellow coworkers to vote for her as the 2014 Employee of the Year. “Being Employee of the Year is an incredible honor. It is very humbling to win this award knowing that my fellow employees voted for me. I love what I do and love being able to help employees succeed and it is wonderful to be recognized for it.”

When Josh Meyer accepted a job as a customer service attendant with Goodwill six years ago, he didn’t think it would turn into a career. Meyer has been promoted numerous times among different retail positions and various store locations. Meyer is now the manager of the Benson Park Plaza retail location. He supervises a staff of 28 people and serves as trainer for Goodwill’s Assistant Manager Retail Development Program. He’s responsible for training employees who have been promoted to Assistant Managers with the goal of having them run a store one day.

Meyer was recognized for his hard work and dedication by being named the 2014 Manager of the Year.

“I am very lucky to manage such great staff who constantly make me shine with their hard work, not just here at Benson Park Plaza, but every store I help at. Thank you again for choosing me to be your Manager of the Year for 2014.”

For two years in a row, Goodwill's GoodBytes Computer Recycling Store has earned the coveted Store of the Year award. The store sells used computers and computer-related equipment. Customers range from techies to teenagers all looking for a variety of items, from a reliable computer to replacement parts. Store Manager James Coggins and his staff make sure they have the goods that people need.

"Winning Store of the Year two years in a row is an honor and huge accomplishment. Credit goes to the hard-working staff and dedicated shoppers all of which make this store the success thatit is," said GoodBytes Store Manager James Coggins. "We are passionate about the mission and determined to reduce waste from the landfills."

EMPLOYEEOF THEYEAR

STOREOF THEYEAR

MANAGEROF THEYEAR

Goodwill Industries, Inc. Serving Eastern Nebraska and Southwest Iowa

4805 North 72nd StreetOmaha, Nebraska 68134-2304

goodwillomaha.org402.341.4609