5Goodwill Industries of Middle Tennessee, Inc.2007 Annual Report

seconds, minutes, hours, days, months...

...years

mission

-The sale of your

donated items helps

people with disabilities

or other barriers to

employment prepare

for and find jobs in the

community.

t Goodwill, we’re celebrating an important anniversary: half a century of Goodwill in middle and west Tennessee. While most people measure anniversaries in years, we measure our anniversaries in terms of the lives that have been touched and transformed.a

So when we say we’re celebrating 50 years of Goodwill in Middle Tennessee, what we’re celebrating is:

Fifty years of having the privilege of seeing the lives of the people we serve improved through meaningful work.

Fifty years of watching people with barriers—people who have physical and mental disabilities, people who are immigrants without language skills, people who are elderly without job interview skills —find dignity, purpose and the ability to overcome obstacles through work.

Fifty years of making the daily discovery that there are too many forgotten folks who can work and want to work and will work hard, if only they are given training and a chance.

Fifty years of seeing employers, reluctant at first, but then thrilled and excited by the untapped resource of people hungry for a chance to show how they can contribute to the growth of a business.

Fifty years of seeing smiles spread over faces as people receive their very first paycheck and sharing the dreams they have for what they can do with what they’ve earned.

Fifty years of seeing lifelong friendships formed and even knowing a few who met at Goodwill, married, and are making a life together.

Fifty years of living in a caring and giving community that has donated millions of pounds of clothing and other goods because people know that there is no greater waste than to discard or disregard

the unused—whether it’s a household item or a person eager to contribute.

Fifty years of friendly, cost-conscious shoppers and friends who’ve found great bargains at our stores while helping us change lives with their support.

We’re grateful for the opportunities we’ve had to serve people. We look forward to 50 more years and the changed lives those years will come to represent.

We thank you for continuing to make history with us,

David Lifsey, President & CEO

“We look forward to 50 more years and the changed lives those years will come to represent.”

Goodwill Celebrates its 50th AnniversaryTo kick off the milestone, clients and employees cut the ceremonial cake in July. Starting with only 28 employees, Goodwill has grown to employ over 1,300 hundred people.

2700

We’ve served thousands of Tennesseans throughout the years with finding, training for, and keeping jobs.

We’ve expanded our programs to help more people, we’ve refocused our target clients and modified long-standing services. We’ve helped more people get jobs by giving them their first chance at earning a paycheck here at Goodwill. We’ve changed as the times have changed. We helped those that society might have otherwise left behind.

But one thing has always stayed the same, our belief in the power of work to change lives.

also in 2007...New Stores and New Store Locations AddedIn 2007 alone, Goodwill opened three new stores: Spring Hill, Union City, and South Jackson, and relocated two other stores in Lewisburg and Rivergate (Nashville).

Transitional Employment BornAfter serving a broad array of people in need of jobs and job training, Goodwill’s board of directors steered the agency back toward its roots—focusing on people with disabilities.

First Store and Donation Site BuiltIn March, Goodwill opened its “model” store and donation center in Spring Hill. The new store is the first store Goodwill Industries of Middle Tennessee has built from the ground up.

Bellevue Donation Express Opened Goodwill added another donation express center to its locations in September. The new site lets donors unload their items in a covered drive-thru. Since the site opened, the number of donors in Bellevue has doubled.

TRAC Training OfferedGoodwill created a program in partnership with the Nashville State Community College to teach clients and youth the basics of working in retail, call center, and service industries.

Four New Career Solutions Centers AvailableGoodwill expanded its job training and placement services to Union City, Lewisburg, Rivergate, and Spring Hill.

Career Solutions Helped More than EverCareer Solutions counselors hit a high note when they placed over 200 people into jobs in July, a first. Then, they followed up that accomplishment by repeating it for two more months before the end of 2007.

2007 Disability Forum HeldCareer Solutions brought together community organizations, government agencies, and people with disabilities under one roof to discuss how to better serve people with disabilities.

One Million Donors ServedDuring a hallmark year, Goodwill reached another milestone. On December 29, Goodwill served its one millionth donor in 2007. A first for the agency.

s ecivredemographic info

People Served by Gender:

Female 3,740

Male 3,740

People Served by Race:

White 3,759

Black/African American 3,221

American Indian/Eskimo/Aleut/Native American) 7

Asian/Pacific Islander 33

Hispanic 415

Other 45

People Served by Age:

15 and under 369

16-24 1,952

24-34 1,709

35-44 1,579

45-54 1,262

55 and over 609

mission services

Intake/Eligibility 13,110

Assessment/Evaluation 22

Job Readiness Training 6,823

Work Skills Training 290

Goodwill On-the-Job Training 275

Job Placement Help 5,940

Retention and/or Advancement 2,318

Intake/Eligibility: Session to determine if clients meet admission criteria.Assessment/Evaluation: Counselor helps clients learn what skills and aptitudes these clients have for successful employment.Job Readiness Training: Instructors teach clients soft skills such as how to fill out an application and give them 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: Job trial where Goodwill teaches clients to perform basic job-related tasks while clients earn a paycheck. Job Placement Help: Counselors help clients find work at Goodwill or other community-based employers.Retention and/or Advancement: Counselors provide support to clients after the clients are hired.

glossary

26 33164

37

187

137203

210

146

Blindness or Other Visual ImpairmentDeafness or Other Hearing ImpairmentOther Physical DisabilityNeurological DisabilityLearning DisabilityChemical DependencyPsychiatric and/or Emotional DisabilityDevelopment DisabilityOther Disabling Condition

disabilitiesTotal Served 1,143

disadvantagesTotal Served 6,337

Total Served 7,480

...26 33

164

37

187

137203

210

146

Blindness or Other Visual ImpairmentDeafness or Other Hearing ImpairmentOther Physical DisabilityNeurological DisabilityLearning DisabilityChemical DependencyPsychiatric and/or Emotional DisabilityDevelopment DisabilityOther Disabling Condition

2493

1560

235

477

1028

146

11419688

Unemployed/Dislocated WorkerWorking Poor/Incumbent WorkerWelfare RecipientAt-Risk YouthOffender/Ex-offenderOlder WorkerHomelessNon-English Speaking/English as a Second LanguageOther Disadvantaging Condition

Not having a car to get to work might seem like a disadvantage to most of us. But Robert

has a wonderful way of taking what some might think of as a disadvantage and using it

to his advantage. “Dealing with my disability causes me to stay busy. So how much of a

disability is it?” he says with a sheepish grin.

determination

-

Legally blind, Robert can’t drive. He doesn’t like to take the bus because

he’s missed his stop before and doesn’t want to be late. So he walks to

work. Every day. Five miles. Even more amazing is he’s been working at

Goodwill for more than two years and he’s never missed a day of work.

He’s never been late, either. That kind of enthusiasm and determination

is infectious. Ask his family. They’re the ones who all wear the “I change

lives” Goodwill T-shirts when they’re out together.

“A doctor told my parents I’d never make it past 16,” says 60-year-old Miss Curry with a laugh that makes

everyone around her smile. “My daddy gave me a party when I turned 17 because I wasn’t supposed to

make it. But I did.” Miss Curry gives her Lord the credit for her survival and putting so many blessings and

people in her life. Like the people at Goodwill. “I just love these people,” she says.

fu lllife

a

In Miss Curry’s case, height is no measure of heart. Her stature is

overshadowed by the size of her heart and the big smile that lights

up her face and all the faces around her. Miss Curry not only

defied her childhood doctor’s prognosis, but she also defies the

rules here at Goodwill. Well, one rule in particular. Her diminutive

size makes her so huggable that friends can’t help but wrap their

arms around her. Some rules (and doctor’s opinions) are meant to

be overlooked.

To look at Catherine, you wouldn’t guess anything is wrong. As assistant to the sr. director of

Career Solutions, she shows incredible patience working with other people with disabilities,

Not only is she patient, but she’s constantly flashing an encouraging grin. No one would

ever guess the suffering she endures.

stre“I’m in constant pain every day of my life,” Catherine admits, letting her smile drop for the briefest of seconds.

“But when I look at Goodwill students and how much they have overcome to work, my pain seems minor.”

Catherine suffers from fibromyalgia, a condition that keeps her in pain and once threatened to keep her from

work. Not anymore. “The people are such an encouragement here,” she says. “Their determination keeps me

going.” And Catherine returns the favor, helping students find their own personal triumph in work.

n htge

@ 12.31.07 2007 2006 2005

ASSETS Current assets: Operating cash $819,751 $632,768 $416,284 Operating reserves 1,484,549 2,436,631 2,665,963 Accounts receivable 481,719 514,502 402,961 Inventories 1,011,936 912,549 771,443 Prepaid expenses 288,558 288,797 137,829 Total current assets 4,086,513 4,785,247 4,394,480 Non-current assets: Designated investments 2,144,295 1,650,863 1,032,637 Land, building and equipment Net of depreciation 18,681,520 14,633,147 10,521,788 Other non-current assets 448,137 350,260 244,121 Total non-current assets 21,273,952 16,634,270 11,798,546 TOTAL ASSETS $25,360,465 $21,419,517 $16,193,026

LIABILITIES AND NET ASSETS Current liabilities: Accounts payable $178,817 $330,481 $209,306 Accrued payroll and employee benefits 2,013,647 1,666,211 1,292,862 Accrued sales tax 117,843 106,434 86,696 Current portion of long-term debt 795,569 511,953 403,838 Other current liabilities 506,898 454,984 341,971 Total current liabilities 3,612,774 3,070,063 2,334,673 Long-term liabilities: Other non-current liabilities 382,392 307,594 199,226 Long-term debt 6,144,669 4,728,702 3,242,010 Total long-term liabilities 6,527,061 5,036,296 3,441,236 TOTAL LIABILITIES 10,139,835 8,106,359 5,775,909 Net assets: Board designated 2,144,295 1,650,863 1,032,637 Other unrestricted 13,076,335 11,662,295 9,384,480 TOTAL NET ASSETS 15,220,630 13,313,158 10,417,117 TOTAL LIABILITIES AND NET ASSETS $25,360,465 $21,419,517 $16,193,026

Auditedfinancialstatementsfor2007and2006areavailableuponrequest.

statement of financial position

37%

18%10%

4%

20%

3%4% 4%

Wages - Mission Related

Wages - Other

Payroll Taxes and Benefits

Supplies

Occupancy

Advertising

Other

Depreciations

@ 12.31.07 2007 2006 2005

ASSETS Current assets: Operating cash $819,751 $632,768 $416,284 Operating reserves 1,484,549 2,436,631 2,665,963 Accounts receivable 481,719 514,502 402,961 Inventories 1,011,936 912,549 771,443 Prepaid expenses 288,558 288,797 137,829 Total current assets 4,086,513 4,785,247 4,394,480 Non-current assets: Designated investments 2,144,295 1,650,863 1,032,637 Land, building and equipment Net of depreciation 18,681,520 14,633,147 10,521,788 Other non-current assets 448,137 350,260 244,121 Total non-current assets 21,273,952 16,634,270 11,798,546 TOTAL ASSETS $25,360,465 $21,419,517 $16,193,026

LIABILITIES AND NET ASSETS Current liabilities: Accounts payable $178,817 $330,481 $209,306 Accrued payroll and employee benefits 2,013,647 1,666,211 1,292,862 Accrued sales tax 117,843 106,434 86,696 Current portion of long-term debt 795,569 511,953 403,838 Other current liabilities 506,898 454,984 341,971 Total current liabilities 3,612,774 3,070,063 2,334,673 Long-term liabilities: Other non-current liabilities 382,392 307,594 199,226 Long-term debt 6,144,669 4,728,702 3,242,010 Total long-term liabilities 6,527,061 5,036,296 3,441,236 TOTAL LIABILITIES 10,139,835 8,106,359 5,775,909 Net assets: Board designated 2,144,295 1,650,863 1,032,637 Other unrestricted 13,076,335 11,662,295 9,384,480 TOTAL NET ASSETS 15,220,630 13,313,158 10,417,117 TOTAL LIABILITIES AND NET ASSETS $25,360,465 $21,419,517 $16,193,026

Auditedfinancialstatementsfor2007and2006areavailableuponrequest.

REVENUE 2007 2006 2005 Sales of goods contributed by the community $36,995,210 $30,513,146 $26,591,411 Fees and grants for professional rehabilitation services 240,567 259,985 233,163 Contract work done for local businesses 343,572 543,141 406,083 United Way support and other contributions 230,498 308,068 75,229 Investment income 121,596 121,961 71,036 Market value increase of investments 89,572 88,659 12,520 Other 139,965 97,170 65,100 TOTAL REVENUE $38,160,980 $31,932,130 $27,454,542

EXPENSES 2007 2006 2005 Wages - mission related $13,953,777 $10,816,128 $8,718,912 Wages - other 6,371,989 5,607,764 5,464,122Payroll taxes and benefits 3,522,920 2,498,376 2,363,217 Total Payroll 23,848,686 18,922,268 16,546,251 Supplies 1,426,605 1,158,552 1,048,349Occupancy 7,084,825 5,948,759 5,589,933Advertising 1,051,027 826,560 783,440Other 1,337,740 970,089 770,289Depreciation 1,504,625 1,209,776 1,177,278 TOTAL EXPENSES $36,253,508 $29,036,004 $25,915,540

2007administrativecoststotal11.7%oftotalexpenses.

Auditedfinancialstatementsfor2007and2006areavailableuponrequest.

financial information

total expenses

Chairman:R. Craig Laine

Director of DevelopmentHighwoodsProperties

Vice Chairman:John W. Stone, III

PartnerWhite&Reasor,PLC

Vice Chairman:Robert McNeilly, IIIPresident and CEO

SunTrustBank

Secretary:Robert B. Kennedy

Vice PresidentFirstHorizonInsuranceGroup,Inc.

Treasurer:Kevin P. McDermott

PartnerKPMGLLP

Legal Counsel:John Tishler

MemberWallerLansdenDortch&Davis,PLLC

Other Goodwill Officers:David B. Lifsey

President and CEO

Tammy B. GlassVice President of Finance

Betty J. JohnsonV.P. of Employment Services

J.B.BakerPresident & CEO

Volunteer Express, Inc.

CatoA.Bass Retired Owner

Midstate Tractor & Equipment

EarlBeasleyPresident

The Homer Brown Company

RitaBennettVolunteer

J.MikeBishop Asst. Vice PresidentPharmacy Services

Health Trust Purchasing Group

WilliamH.Cammack, TrusteeChairman

Equitable Trust Company

SteeleClayton Partner

Bass, Berry & Sims, PLC

DavidCondraChairman

Dalcon Enterprises

GaryW.Cordell Chief Operating Officer

Clayton Associates

ChristopherS.DunnAttorney

Waller Lansden Dortch & Davis, PLLC

W.FrankEvans Retired PresidentRed Kap Industries

DeborahFaulknerInspector GeneralState of Tennessee

TennCare

FarzinFerdowsi Partner

Management Resources

ErnestFreudenthalAdjunct Asso. Professor

Vanderbilt University

KateS.GibsonAccounting Manager

Vanderbilt Medical Ctr.Department of Finance

JohnC.GreerVice President

TennComm, LLC

L.HallHardaway,Jr. Retired Chairman

The Hardaway Group

DecostaJenkinsTrustee

PresidentNashville Electric Service

JamesL.Knight Retired President

Check Printers, Inc.

FredT.McLaughlin,Trustee

Branch ManagerRobert W. Baird & Co., Inc.

TyOsmanPresident

Solomon Builders

ThomasS.StumbPresident

Nashville Bank & Trust

JohnVanMolPresident

Dye, Van Mol and Lawrence

TimothyF.VaughnPresident

Cumberland Die Supply

BillWoodDirector, IT

Dollar General Corp.

DonnaB.YurdinOwner

Credo Management Consulting

board of directors

Goodwill Staff

design Scott Bryantcopy Keri Foyadvisor Karl Houston

Acknowledgmentsother

copy Nelson Eddy, Dye,VanMol&Lawrencephotography Dana Thomas Photographyprinting Douglas Printing