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Memphis Goodwill 2011/2012 Annual Report

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Tony MartiniCEO & PresidentMemphis Goodwill, Inc.

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OPPOThen & NowFrom parking lot kiosks to attendeddonation centers, Memphis Goodwillhas changed since we opened in 1927.But our mission has always been thesame, creating opportunities for thosefacing job barriers. Your donations andpurchases make our mission possible.

Thousands of people come through the doors of Memphis Goodwill each year.

Legions of loyal shoppers browse and buy in our nine area stores. Generous donors

visit our 25 attended donation centers. More than 500 hardworking employees come

into our facilities every day to serve you.

Those doors symbolize what Memphis Goodwill is about, which is opening the doors

of opportunity. We’re building programs that lead to learning new life and employment

skills, getting a job and building a better life. These doors have been shut to many of our

neighbors for a variety of reasons: a lack of education or work experience, a disability

or social/economic disadvantage or maybe just the tough economic times in which

we’re living. Everyone must prove themselves and make their way, but everyone

needs a chance to get a foot in the door. It’s our mission to open those doors.

In this annual report, you’ll learn about the doors we're opening at Memphis Goodwill.

You’ll read about some of the people who have taken advantage of these opportunities,

worked hard, and excelled. Because of their contributions and service, we continue

to expand programs and grow our mission. Because of them, we're proud of what

Memphis Goodwill is doing now, and of new opportunities we'll build in the future.

A leader once observed that we must open the doors of opportunity – but we must

also equip our people to walk through those doors. That is the mission you support

when you give to Memphis Goodwill. Thank you for helping us open doors for people

in our communities.

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333,072 Donation Visits in 2011313,111 Donation Visits in 2010

Accepting and selling donations of clothing, household wares,books and furniture is the primary focus of Memphis Goodwill’sDonated Goods division. Your donations are our mission’slifeblood, providing the resources to employ hundreds ofpeople and to offer jobs and life skills training programs.Our goal is to show our gratitude every time you visit a storeor donation center by giving you prompt, courteous help.

Teamwork Every DayService with a smile at the Stage Road store! Left to right:Channin Cochran, Assistant Team Leader (ATL); RalphMcIntyre, Team Leader Coach; Gemia Wortham,Keyholder; and Juanita Scott, ATL.

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2012Donation Visits:

DONATI370,147

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How the“River ofDonations”works:

A friendly donor greetermeets you at the doorand accepts yourdonated items.

Inside the store, ourgraders and hangersinspect, sort, and priceyour donated items.

Store sales associateshang clothing, displayitems and rotate thestore inventory.

Items that don’tpass inspectionare prepared byour salvage teamfor recycling orbulk resale.

Our smiling storecashiers ring up andbag your purchases.

Your purchases find anew home while theyhelp to fund programsthat change lives.

The flow of donations from many generous

Mid-Southerners keeps the doors of our 25

attended donation centers (ADCs) and nine

retail stores open in Shelby, Fayette and Tipton

counties. Since 1927, our goal has been to offer

convenience, service and good value to our

customers and donors so we can continue to

fund the life-changing work of Memphis Goodwill.

Our mission is to improve the community by

changing the lives of its people with disabilities

and other barriers to employment through services,

partnerships, collaborations and responsible use

of community resources. Our vision is a community

that works together to create an environment

where everyone can achieve self-sufficiency

and reach their full potential.

ATIONVintage FavoriteEverything old is new again

at Memphis Goodwill. In 2012,Goodwill was voted Memphis’

Favorite Vintage ClothingStore by the readers of

The Memphis Flyer.

700,343 Store Transactions in 2011591,055 Store Transactions in 2010

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Why I Thank God for Goodwill

I can’t possibly express the magnitude oftransformation in my professional and personallife since joining Goodwill.

As a young man, I made some bad choices,including alcohol, drugs, and violence. I wasshot three different times before I was 24 yearsold. I left Florida and came to Memphis, whereI was blessed to meet a welder who gave me achance to train and apprentice in his shop formore than seven years. I thought I had foundsomething tailor-made for me, but was suddenlyhit with a form of cancer that causes severeinflammation in my body’s tissue, and had toquit the job I loved. That took me right backto old, harmful bad habits. At some point,I prayed to God for a change in my life.

I started chemotherapy and radiation, butwas still drinking heavily, which was breakingup my marriage and family. So I checked intoa treatment center and asked God to direct mypath. I completed treatment and set out on avigorous course of action. My goals were tocomplete my high school education, finda job and get my family back together.

EXPAN

2012 Store Transactions:

851,728

Memphis Goodwill’s presence is

growing in the Mid-South. In 2011,

we opened our Riverdale store, and

five new attended donation centers.

Our Tipton County store opened

for business in 2012, along with our

donation centers in the Fox Meadows

neighborhood and in Oakland, Tenn.

But our business expansion includes

something greater than buildings.

Memphis Goodwill also gives people

a chance to expand their personal

and professional horizons. It’s all

part of the Goodwill philosophy to

“give a hand-up, not a hand-out.”

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PANSIONWhile shopping at a Goodwill for some itemsfor my small apartment, I decided to ask theassistant team leader about an employmentapplication. That moment began my journeywith Goodwill, and it has turned out to be oneof the best things that ever happened to me.I am grateful to so many people at Goodwillwho recognized my hard work and dedicationand gave me the chance to prove myself.So many people on the Goodwill team havegiven me so much. My family is back together,and I have earned my GED, my certificationfor substance abuse counseling, and am nowworking on a degree in human services. I stillface health challenges related to my cancerand tissue inflammation, but I’m thankful thatit is under control enough to continue to work,lead my family and pursue my goals.

My life’s journey has been very challengingand very rewarding. Today I’m a better man,husband and father. Thank you, God, andthank you Goodwill.

Darrell MallardTeam Leader Coach, Riverdale StoreGoodwill Team Member since 2009

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EMPLOY

Amy is a graduate of Goodwill’s warehousetraining program. She began work in May 2013as a box maker at Medtronic’s Distribution andLogistics Campus in Memphis. Several thousandorders are filled each day in Medtronic’s distributionwarehouse, and Amy’s role is to pre-build shippingcartons so the orders can be filled promptly.Having Amy on the warehouse floor speeds upthe packing and shipping process, since othersdon’t have to stop to make the boxes themselves,says her manager. With her smile and can-doattitude, Amy is contributing to her employerand her community.

Amy WolfeBox Maker, MedtronicNew Goodwill Team Member

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Having a job is important, and there are benefits besides

a paycheck: experiencing the pride of accomplishment,

the satisfaction of being part of a team and contributing

to a goal. It’s building a sense of self-worth, self-sufficiency

and realizing potential. Preparing people for employment and

expanding and filling job positions are Memphis Goodwill’s

primary focus, as we work to help people overcome barriers

and change their lives for the better. We accomplish those

goals through three divisions:

• Donated Goods – our network of nine storesand 25 attended donation centers

• Government and Commercial Contracts – placingworkers in government and business locations

• Vocational Rehabilitation Center (VRC) – providing trainingand job placement support for those with special needs

Memphis Goodwill job opportunities are focused in retail

operations, janitorial services, grounds maintenance,

warehouse services and customer service.

418 Employees in 2011383 Employees in 2010

2012Employees:

(28% of all employeeshave declared disabilities)

524+76 Employees placed

with other companies

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Goodwill is proud of our contract teams, like the hard-workingcrew that maintains the 23-acre rest stop facility in Henning.They recently ranked No. 2 in the entire state of Tennesseefor facility care and appearance, and have received highpraise from visitors, including this note from one traveler:

“My wife and I travel Highway 51 on a regular basis, and I wantto share a compliment. We often stop at a rest area just north ofCovington whenever we go through that area, and the gentlemenworking there are a true compliment to your department. Not onlydo they keep the rest area clean, but they are great ambassadorsfor the state of Tennessee. They are always friendly and courteous.Too often, these people are overlooked, so I wanted to share thiscompliment. By far, these guys put the other rest areas to shame.”

High-Performing TDOT TeamThe Henning Crew: (left to right) Cashawn Rogers, Bobby Whitelaw,Qudrell Barnes, Thomas Jarrett, William Baskin and Larry Paris.

Through its Government & Commercial Contracts

division, Memphis Goodwill trains, places and

supervises janitorial, groundskeeping, customer

service and warehouse workers.

Our Government Contracts clients include the

Memphis IRS Service Center, Federal Buildings

in Memphis and Jackson, Tenn. and Tennessee

Department of Transportation (TDOT) rest areas

in Henning, Jackson and Memphis. In late 2011,

we formed our Commercial Contracts division,

and currently have active, working partnerships

with companies such as Hilton and Aramark –

as well as companies in the assisted living and

construction industries. We look forward to

serving our newest partner, Stax Museum and

Soulsville Academy, beginning in August 2013.

More than 17 years of service in Memphis

Square Feet of OfficeSpace Cleaned Daily

1.8Million

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NERSHIP

CAPABILVRCImpact:

Students Served

Placed in Jobs

283

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Memphis Goodwill’s Vocational Rehabilitation

Center (VRC) and AT&T teamed up in 2010

to create a warehouse training environment.

Our collaboration has resulted in local success

through the AT&T CapABILITY program. AT&T

currently employs six full-time and 13 contract-

to-hire employees. Warehouse production and

work quality have risen with the contributions

of these CapABILITY employees. Eighty (80)

percent of them produce in the top 20% of

their areas, and 20% are consistently in the

top 10% of producers in the workforce.

After completing his training at the MemphisGoodwill Vocational Rehabilitation Center,Albert Harris (far left) was the very first AT&TCapABILITY Program hire in January of 2011.Albert has been consistently recognized byAT&T for having one of the highest productivityrates in the Memphis distribution warehouse.He is focused and dedicated, and alwayseager to help.

Christopher Brandon (right) entered theGoodwill Vocational Rehab Program in 2011.Since completing his training and enteringthe workforce under the AT&T CapABILITYProgram, he has flourished and advanced.Chris’ mother writes:

“Employment with AT&T has enormouslyempowered my son Christopher. He hasconquered the difficult adversity placedbefore him because of his disability. Workingat AT&T has given Chris the confidence andresources to take control of his own life.Equally as important, Chris engages in adiverse environment every day at AT&T.This opportunity has profoundly helpedhim develop his social skills. Christopher isnow a successful young man, employed byone of the largest companies in the country.”

Albert Harris andChristopher BrandonDistribution Coordinators at theAT&T Memphis Distribution CenterMemphis Goodwill Vocational RehabilitationCenter Graduates in 2011, 2012

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Memphis Goodwill aims to be a good community neighbor.

Outreach includes education and events collaborations, job

fairs, informational tours and carefully selected sponsorships.

Goodwill’s involvement with the University of Memphis men’s

basketball program included a “Goodwill Night” at the FedEx

Forum, where we honored our Business Partner Pillar Award

recipients: Aramark, AT&T, Hilton & Versant Supply Chain.

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2012 Goodwill Recognitions• Top 25 Most Inspiring Companies in U.S.

by Forbes Magazine

• Ranked in Top 5 for Donationsby Non-Profit Times

• Top 25 Social & Human Services Non-ProfitAgency by the Memphis Business Journal

• Favorite Vintage Clothing Store by readersof The Memphis Flyer

• CEO Tony Martini named a 2012 PowerPlayer of Public Service by MemphisBusiness Quarterly

Goodwill in the Community(Clockwise from above):

• Corporate team gets moving in annual Breast Cancer walk

• Aramark’s Terry Hardaway accepts a Business Partner Pillar Award

• Fox Meadows team members share a spirited, patriotic greeting

• Goodwill’s colors flying high on the FedEx Forum scoreboard

• Drawing winner shows off “Penny” Air Nikes signed by Hardaway

• Helen Neal’s smile shows why she won a Kindness Revolution Award

• On the greens during Goodwill’s 2012 Day Trip to the Masters

• Goodwill takes donations at University of Memphis dorm move-out

• “Annie Hall” look: from the Goodwill racks to a fashion show runway

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Willie WalkerSenior DirectorCommercial Janitorial ServicesGoodwill Team Member since1996

Hardworking and wise. Diligent andpatient. Friendly and kind. That’s howco-workers describe Willie Walker,who has been an important partof Memphis Goodwill since 1996.An Air Force veteran, Willie beganhis career with Goodwill working asthe assistant project manager at theIRS Center. Since then, he has risenthrough the ranks and become aleader in our Commercial ContractsDivision, providing direction, trainingand guidance for workers assignedto commercial and governmentclient locations.

Julie SnipesJanitorial ServicesMemphis Federal BuildingGoodwill Team Member since 2002

Transferring from one of Goodwill’sstore locations, Julie found a workhome at the Memphis FederalBuilding in 2002. Over the last 11years, she has matured into oneof the most dependable memberson the Federal Building team. Julieis someone who can be called onat any time, and if there’s somethingto do, she does it, and does it well.Active in her church, Julie has facedsome challenges in life but does sowithout complaint. We can all learn alot from Julie’s faith, her commitmentand her beautiful smile.

Tremayne DavisSalvage OperationsStage Road StoreGoodwill Team Member since 2012

Tremayne came to Goodwill’sVocational Rehabilitation ServicesCenter for job skills training. A shyyoung man, Tremayne’s learningchallenges kept him isolated fromother people, and kept him fromreaching his potential and gainingindependence. Since joining theGoodwill team, Tremayne hasblossomed in confidence andsocial interactions. He now livesin his own apartment, rides thebus to and from work, and hopesto get his driver’s license. No onecan stay down when Tremayneshares a friendly hug!

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Michelle EasleyHousekeeping ServicesInternal Revenue Service CenterGoodwill Team Member since 2000

Michelle began her work life at theMemphis Internal Revenue ServiceCenter in 2000. It was her first job,and Michelle adapted quickly.Easy-going and mild-mannered,Michelle is one of 54 Goodwillemployees working at the IRSCenter, and she is one of themost loyal, long-term employeesyou’ll meet, says her managerJanie Johnson. “Seventy-fivepercent of the team faces sometype of challenge, yet they areso dedicated. Our turnover rateis low, and many people havebeen here for years.”

Ryan SmithSales AssociateAustin Peay StoreGoodwill Team Member since 2006

“Ryan is such a pleasant personwith a great attitude. He comes towork every day with a smile on hisface and filled with such a wonderfulspirit. He is a team player and likesto give assistance any time that hecan. Ryan often takes the initiativeto help out without being asked,from helping out at the donor doorto sweeping restrooms and gettingshopping carts from the parking lot.Ryan’s glowing personality shinesthrough every day that he comes towork, and he gets along well witheveryone,” says Maria Scurlock,Austin Peay Team Leader Coach.

Keith Von AllmenDonor GreeterPark Place BookstoreGoodwill Team Member since 2005

Here are just some of the commentswe’ve received from donors who visitour Park Place Bookstore location:“It’s always a joy to give and havesuch a nice reception.” “Alwayscourteous! Best bookstore in EastMemphis!” “My favorite drop-offspot.” One reason for this location’srave reviews is center Attendant KeithVon Allmen, who has been greetingand helping donors for the last eightyears. Drive up to the door and Keithwill be there quickly, offering servicewith a smile. Keith is a huge Universityof Memphis Tigers fan, and attendsnearly every men’s home basketballgame. Go Tigers, and Go Keith!

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4,110,895 pounds recycled in 20114,711,864 pounds recycled in 2010

When You See Goodwill Blue,Think “Green.”

At Memphis Goodwill, items not sold inour stores go to recycling or bulk salvagingoperations, keeping millions of poundsof waste out of area landfills. One of ourrecycling partners is the Dell Re-Connectprogram, which takes all computers andaccessories. Got a worn-out computer,monitor, old keyboard or printer? Bring itto Goodwill and we’ll dispose of it safely.

4,558,087Pounds of RecycledSalvage in 2012

Wages & Benefits

OperatingExpenses

Administration

2012Expenses

FinancialsOur GuidingPrinciples

Donated Goods/Stores:

• We are committed to providingworld-class customer serviceto all our customers.

• We are committed to a clean,neat, organized and safe facility.The image of the facility reflectsGoodwill, the manager/TeamLeader Coach and the team.

• We are committed to astore fully stocked withfresh inventory.

• Donors and shoppers shouldbe greeted within 10 seconds.

• All donations should beprocessed within 24 hours.

• Every time we toucha donation – somethinggood should happen.

Contracts Division:

• We will provide world-classcustomer service.

• We will treat each personwith respect, integrity, honesty,openness and fairness.

• We will respond to requests,needs and issues in a timely,effective manner.

• We will provide clean, healthy,green and safe facilities andwork environments andproject a clean, neat andprofessional appearance.

• We will build and sustainlong-term relationships thatare mutually beneficial.

• We will bid and acceptcontracts that align withour company’s mission,skills, capacity and pricestructure – creatingwin-win situationsfor all parties.

Revenue 2011 2012

Donated Goods (Stores) $ 11,562,238 $ 14,091,419Government Contracts 4,606,802 4,400,901Commercial Contracts/Grants 983,474 1,024,528Workforce Development (VRC) 339,559 288,798

Total $ 17,492,073 $ 19,805,646

ExpensesWages & Benefits $ 8,852,030 $ 10,751,156Operating Expenses 5,544,374 5,201,572Administration 2,448,322 2,855,082

Total $ 16,844,726 $ 18,807,810

Operating SurplusTo reinvest in missionand capacity planning $ 647,347 $ 997,836

DonatedGoods

GovernmentContracts

WorkforceDevelopment

Memphis Goodwillgratefully acknowledgesfinancial and/or in-kindsupport from:

• Assisi Foundation

• EntercomCommunications

• First TennesseeFoundation

• James Davis

• Kemmons WilsonFamily Foundation

• Medtronic, Inc.

• Oak Hall

• Plough Foundation

• WREG-TV

2012Revenue

CommercialContracts

GOODWILL

Memphis Goodwill Leadership

Tony Martini Dave Leutwyler Henry Brenner Tom MurachChief Executive Officer Executive VP of Corporate and VP of Strategic Planning and

and President Vice President Community Relations Business Development

2011/2012 Memphis Goodwill Board MembersBrian Williams – Chair

Billy W. Tedford, Jr. – Treasurer/Secretary

Larry C. Clayton

Joseph S. Clift

Deacon Bill Davis

Thomas J. Dayton, Sr.

Anfernee “Penny” HardawayJoyce Lower

William B. (Ben) MaddenMark R. NanceMichael RobilioMacky Sneed

Alan Taylor

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We thank you for your generous, tax-deductible contributionto help individuals with disabilities and other special needsreceive the training and opportunities they need to find

employment and become a productive member of society.

Our business is changing lives.

Yes, I would like to make a contribution to the mission of Memphis Goodwill!

� $500 � $250 � $100 � $50 � Other _____________

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Email _______________________________________ Phone _________________________________

Donation Payment Options:

� My check for $ ________ is enclosed (made payable to Memphis Goodwill Incorporated)

� Please charge my credit card: � VISA � MasterCard

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If you would like to make your contribution online, please visit www.goodwillmemphis.org

Store Locations:

3830 Austin Peay

574 South Highland

6063 Park Ave.

6899 Stage Road

7114 Winchester

783 W. Poplar – Collierville

8059 Highway 51 North – Millington

800 Highway 51 North – Covington

Attended Donation Centers:

9947 Wolf River Blvd.

1890 Berryhill Road

2235 Central Ave.

574 South Highland

6063 Park Ave.

3109 Poplar Ave.

2964 Covington Pike

3101 South Mendenhall

1144 North Houston Levee

6518 Quince

1939 Madison Ave.

700 Mt. Moriah

4725 Summer Ave.

3315 Hacks Cross

1724 South White Station

1740 Whitten Road

6745 Winchester

11615 Highway 70 – Arlington

11680 Highway 51 South – Atoka

330 Market Blvd. – Collierville

800 Highway 51 North – Covington

1655 Highway 51 South – Covington

9733 Highway 64 – Lakeland

8510 Wilkinsville Road – Millington

7275 Highway 64 – Oakland

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Our business is changing lives.®