2012 Annual Report

The Story of a Shirt

You know the One. The shirt that has seen you through life's challenges. The shirt that goes with everything. The shirt that makes you happy. But it is time to move on, so you give that shirt to Goodwill®.

At Goodwill, your donated shirts, (computers, sofas or teapots) do amazing things.They help fund services for more than 8,200 people in Southeast Iowa and the Quad Cities.

Vocational ServicesWe help individuals with all kinds of barriers prepare for, enter and remain in the workforce. Our services cover everything from learning how to create a resume to providing job coaching supports once on the job. All services are customized to the person being served. We even help students in special education programs make the transition from school to the world of work.

Independent Living We offer services for individuals looking to enhance their social and recreational opportunities or to maintain their independence. Programs are personalized depending on each participant’s goals and needs. Additionally, Goodwill of the Heartland provides more than $100,000 in clothing and shoe vouchers through partner agencies for families and individuals in need.

Veterans’ Services Goodwill proudly supports those who have served our country. Our veterans’ services, housed primarily in the Quad Cities area, aim to help our American heroes stand on their own again. We offer opportunities for work experience, skills training and case management services to help with issues such as housing and transportation.

Contract ServicesGoodwill of the Heartland Contract Services is a strategic sourcing partner for leading area companies, providing light industrial work such as packaging, sorting and inspections. The team provided work opportunities for 226 clients in 2012. The work they do for Nordstrom, Rockwell Collins, Whirlpool Amana and others literally travels around the world.

Stores and DonationsYou know the stores as a place for great values, but our stores employed 577 throughout our territory. Many of our employees received services from Goodwill at some point. We invest 90% of all revenue generated by our stores and donation operations back into our mission services.

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Each person we serve is as unique as the items donated to us. We serve each person according to his or her personal goals. The items you donate help us to give a leg up to some pretty amazing people.

Independent Living Ashley utilized Goodwill’s Dayhabilitation services to

gain confidence and overcome challenges. She soon

found herself ready for new challenges and now works in

one of our retail stores.

Veterans’ Services Steven knew he needed to

change his life when he found Goodwill and our services for disadvantaged veterans. He worked his way through the program, found supported

employment and eventually landed a community job

through Goodwill.

Vocational Services Patrick utilized Goodwill's

vocational services to learn the skills he needed to

succeed in a job he loves. After working with a job coach,

Patrick is working and living independently.

Contract Services Contract Services gives

participants opportunities to try work from the area’s leading

manufacturers in a supportive environment. The goal is to

translate these skills to community jobs. Jeff is working to find his

perfect community job. Meanwhile, he enjoys the camaraderie offered

in Contract Services.

Stores & Donations Many of the people we serve

utilize on-the-job training opportunities in our stores and donation centers to advance

to independence.

51

pounds of donations

finished goods completed by the Contracts team

in clothing and shoe vouchers distributed

items sold on shopgoodwill.com

people with barriers served in 2012

individuals placed in community jobs

on-time delivery of Contracts Services' 2,921 shipments

portion of each revenue dollar invested in mission

students served through Career Connections

2012:G

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39.3 million

8.6 million

$127,000

22,276

8,202

422

100%

$.90

51

pounds of donations

finished goods completed by the Contracts team

in clothing and shoe vouchers distributed

items sold on shopgoodwill.com

people with barriers served in 2012

individuals placed in community jobs

Our mission to advance the well-being of individuals who experience barriers to independence is made possible through lots of donations of shirts and other amazing treasures. The generosity of our area’s residents allows us to do this important work so that all of our communities are richer.

We began the year by celebrating a relocated Moline, Illinois store. We opened two new Dayhabilitation centers, relocated a third and moved our Quad Cities support staff into a better facility. Our services to people experiencing barriers are growing in Burlington and Clinton, two relatively new locations for us. In fact, the number of people we served grew 37% to 8,202 in 2012.

We continue to seek ways to improve our services and to answer community needs for services. A community needs assessment completed in 2012 is pointing the way and we will continue to listen to the needs throughout our service area. It is an exciting time.

On behalf of everyone at your Goodwill, thank you for your support. Your donations and purchases in our stores drive our ability to help so many of our neighbors.

Pat AiryPresident & CEO

Terri DavisBoard Chair

Revenue and ExpensesFor the Year Ending December 31, 2012 with comparative information for 2011

2012 2011RevenueUnited Way and contributions (1 246,283 322,921Program fees and grants 5,610,785 5,039,908Store sales and recycling 21,342,478 18,353,104Contracts with businesses 1,638,278 1,542,277Other revenue 56,239 32,857Total Revenue 28,894,063 25,291,067

ExpensesPayroll expenses 18,408,621 16,686,036Supplies and services purchased 1,339,578 1,173,766Facilities and equipment 3,976,461 3,482,279Travel and vehicles 1,110,233 1,060,226Depreciation and other expenses 1,836,574 2,007,330Total Expenses 26,671,467 24,409,637

Change in Net Assets 2,222,596 881,430

1) Includes temporarily restricted United Way funds of $88,425 for 2012 and $98,425 for 2011.

Balance SheetDecember 31, 2012 with comparative information for 2011

2011 2011AssetsCash and investments 3,368,309 3,263,095Accounts receivable 705,554 732,589Other current assets 757,634 678,816Property and equipment 12,214,446 10,345,972Other assets 465,049 439,832Total Assets 17,510,992 15,460,304

Liabilities and Net AssetsAccounts payable 559,722 330,431Accrued payroll and benefits 1,547,568 1,429,881Other current liabilities 414,997 359,917Long-term debt 4,395,247 4,969,213Total Liabilities 6,917,534 7,089,442Net Assets 10,593,458 8,370,862Total Liabilities and Net Assets 17,510,992 15,460,304

CliftonLarsonAllen, LLP, an independent auditor with offices in Cedar Rapids, Iowa, completed the audit of Goodwill's 2012 financial statements. A complete copy of Goodwill's audited financial statements is available upon request.

Financial Statement

DonorsAero RentalPat AiryTheresa M. AltKarlyene BaileySusan BaltaLois BartelmeLuther Batte IIIRobert BlaserFinely United Church WomenWillard L. and Susan BoydShawn BrewerJennifer BridgesLeon and Pamela BurmeisterStanley and Michelle BurnsTrudy BurnsRichard and Ann BurtonDavid and Angie BywaterMiriam CampbellAnn CampbellRichard and Ellen CaplanEdna Carpenter-BookerJo CatalanoCity Carton RecyclingCliftonLarsonAllen, LLPJames ColeCrown Electric, Inc.Terry CunninghamMarjorie DaftGeorge and Marjorie DaneNorma DavisBruce L. DavisRose DonnellyDana EngelbertMichael and Cora EngelkenSusan EnzleTammi ErbEvergreen Packaging Equipment, Inc.Christine FeeneyFreeport-McMoRan Copper & Gold FoundationRobert and Marian GaffeyCourtney GlasgowHelen GoldsteinHarlan GraberSenator Charles E. and Barbara Ann GrassleyPaul and Jeane GrossmanHawkeye Foodservice Distribution

Larry and Jean HeeseCharles and Lelia HelmsHighway Equipment CompanyHills Bank and Trust Co.Jon and Mary Ann HoglundThomas HoogerwerfNancy Jones and Michael HovlandJohn and Melinda HowertonVernon R. and Rose JacksonMyron and Tana JenningsKapStoneMildred KellerSherry KingGina KloosCarolyn KohlerElmer M. KonzenZachary and Lindsey KotowskeJody Krier SeibelBernard and Anna LehmanDwayne and Joan Liffring-Zug BourretKarl and Vicki LonngrenBonnie Rae LoveCharles E. and Dorothy MarberryFlorence McBrienAmanda McConaughyLouise S. and Robert McCoyTim and Judith McCueJames and Mary McCueBetty McGowanJennifer McNamaraGerald MeisMerchants Bonding Company FoundationMercy Medical Center - Cedar RapidsMidWestOne BankDeb Miller Verlis and Nancy MillerMoen GroupMolyneaux InsuranceLora Morgan-DunhamMutual of AmericaNewman Catholic Student CenterTeresa NicholsNordstrom DirectChristine NorthOral B LaboratoriesCharles and Sally Orr

Rebecca S. PattersonPerry FoundationPhil and Barb PetersonTodd Pope-SandquistMarc J. RaheRon RasmussenRosemarie ReeseRobin RettigPeter and Elizabeth RieszTom RocklinRockwell CollinsAloysius RoedererScott RogersIva SagertJoseph SamuelScheels All SportsFrank L. SchmidtElizabeth SchottElayne SexsmithKathy S. SheltonWayne and Janet ShipmanShuttleworth & Ingersoll, P.L.C.Robert and Janet SiroisSlappey Family FoundationLeanne SommersRobert and Helene SoperEugene SpazianiStanley ConsultantsOliver and Joy SteeleJohn StokesJohn S. and Susan T. StraussChester and Janet SullivanSusan and James SwainAngeline TaakeTaste of ChinaPaulette A. TaylorThe McIntyre FoundationGregs and Mettie ThomopulosHarold ToepferJason TomsToyota of Iowa CityTrueNorth InsuranceUniversity of Iowa Community Credit UnionKenneth and Julie UrmieVan Meter, Inc.WalmartJames and Jo Ann WastaLarry and Jeanette WatersJohn WatsonTom Werderitsch

William H. WernerWest BankDavid and Barbara WiemerBetty S. WinokurTimothy WoolumsEkhard Ziegler

In Honor of Jeanne JuehringEdith Harrelson

In Honor of Deb MillerJohn Watson

MemorialsIn Memory of Col. Brooks BookerEdna Carpenter-Booker

In Memory of Terrance FitzpatrickConnie HuberKathy Fitzpatrick

In Memory of Helen HeinzeLawrence and Caroline ErtzMary Ann FelsDick and Pat HergertThomas H. and Mary E. Nurre

In Memory of Emily Helms Robert ClarkCharles and Lelia Helms

Every effort has been made to ensure a full and

accurate list of donors. If we have omitted

or misspelled your name, please accept our sincerest

apologies and contact John Posey

at (319) 248-4644.

Terri Davis, ChairShuttleworth & Ingersoll, P.L.C., Cedar Rapids

Dick Schwab, Vice President Solon

David Bywater, TreasurerTru Art Color Graphics, Iowa City

Ken Urmie, SecretaryMidWestOne Bank, Iowa City

Rose DonnellyRockwell Collins, Cedar Rapids

Matthew FraschtUniversity of Iowa Community Credit Union, Coralville

Charles Helms, M.D., Ph.D., RetiredIowa City

Dale KretschmarMarion

Julie KunkelSouth Slope, North Liberty

Tom RocklinUniversity of Iowa, Iowa City

Paul RumlerQuad Cities Chamber of Commerce, Davenport

Elayne SexsmithCenter for Disabilities & Development, Iowa City

Ang TaakeEvergreen Packaging Equipment, Cedar Rapids

Gregs ThomopulosStanley Consultants, Inc., Muscatine

Tom WerderitschSelzer Werderitsch Associates, Iowa City

Board of Directors

Pat AiryPresident & CEO

Dana EngelbertVice President, Marketing

Tamera Erb, CPASenior Vice President & CFO

Laura KoppVice President, Programs

Ken RizerSenior Vice President, Operations

Jason TomsVice President, Retail

Senior Leadership Team

Retail Operations

Bettendorf Store2333 Cumberland Sq. Dr.Bettendorf, IA 52772

Burlington Store165 W. Burlington Ave.Burlington, IA 52601

Cedar Rapids East Store5520 Council St. N.E.Cedar Rapids, IA 52402

Cedar Rapids West Store2000 Scotty Dr. S.W.Cedar Rapids, IA 52404

Clinton Store1015 13th Ave. N.Clinton, IA 52732

Coralville Store2551 Heartland Pl. Coralville, IA 52241

Davenport Store5360 Villa Dr.Davenport, IA 52806

Fairfield Store2505 W. BurlingtonFairfield, IA 52556

Iowa City Store985 Hwy. 6 E.Iowa City, IA 52240

Marion Store3202 7th Ave.Marion, IA 52302

Moline Store4805 22nd Ave.Moline, IL 61265

Muscatine Store2001 Cedar Plaza Dr.Muscatine, IA 52761

Rock Island Store4664 44th St.Rock Island, IL 61201

Washington Store312 E. Washington St.Washington, IA 52353

Goodwill Reboot1410 S. First Ave.Iowa City, IA 52240

Snackers2 Restaurant206 E. Second St.Muscatine, IA 52761

Cedar Rapids Donation Center802 34th St. S.E.Cedar Rapids, IA 52403

DeWitt Donation Center1416 11th St.DeWitt, IA 52742

Retail Support Center3825 Liberty Dr.Iowa City, IA 52240

Administrative OfficesWork Centers866-466-7881

1441 Blairs Ferry Rd. N.E.Cedar Rapids, IA 52402

1410 S. First Ave.Iowa City, IA 52240

Support Services Centers866-466-7881

165 W. Burlington Ave.Burlington, IA 52601

1441 Blairs Ferry Rd. N.E.Cedar Rapids, IA 52402

805 W. 35th St.Davenport, IA 52806

1700 S. First Ave.Suite 11AIowa City, IA 52240

2001 Cedar Plaza Dr.Muscatine, IA 52761

Goodwill of the Heartland is accredited by CARF, the rehabilitation accreditation commission, and is a member of United Way of East Central Iowa, United Way of Johnson County and United Way of Muscatine.

Goodwill of the Heartland is an Affirmative Action/Equal Opportunity Employer.

©2013 Goodwill of the Heartland1410 S First Ave.Iowa City, IA 52240866-466-7881

www.goodwillheartland.org