Board of Trustees 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. CsipkesRichard A. FrandeenRonald C. JensenLarry R. King Sandra A. LaneJoseph W. LangErin LimasOthello H. Meadows IIIR.J. NearyJoseph J. OlsenDaniel A. PadillaCarol L. RussellScott D. SemradDaniel G. WenzlLyn Wallin Ziegenbein

Life MembersJ. Timothy DaughertyGerald C. GrayMary Pat HeckMichael E. LeightonJames L. MounceDolores C. OwenAnthony M. PayneWilliam B. PrestonWilliam E. RamseyCharles V. Sederstrom, Jr.Wayne E. SimmondsKaren A. SteinJoseph T. Sullivan, Jr.William N. VobejdaTommy L. WhalenAndrew WilliamsGary R. Yocum

4805 North 72nd Street - Omaha, Nebraska 68134 - Phone: 402.341.4609 - Fax: 402.341.3061 - www.goodwillomaha.org

Goodwill changes lives and strengthens communities through education, training and work.

BOARD OF TRUSTEES TUESDAY, MARCH 17, 2015

12PM

AGENDA

Program Participant

Introduction of New Board Members

Development Committee-Mark Stokes

Delegate Assembly Planning- Frank McGree/Mark Brasee

Audit Committee – Sandy Lane

OFCCP Update- Frank McGree

President’s Report-Frank McGree

CONSENT AGENDA

Information in the Consent Agenda is a way for Goodwill Industries’ Board to manage the number of reports and regular approvals brought before it. Rather than reviewing each regular action item, Board Chair Mark Brasee, or his designee, will ask for a motion to approve the consent agenda. If there is an item that a director would like the Board to discuss further, they may ask for it to be removed from the Consent Agenda. Once any noted items are removed, the remaining agenda items will be voted on and any removed items will be discussed separately.

Financials E&T Report

AttachmentsPresident’s Report for January and February 2015

January 2015 Board MinutesFebruary 2015 Financials

February 2015 E&T ReportBalanced Scorecard

Development MTD and YTD ComparisonGift Giving Policy

PRESIDENT’S REPORT TO THE BOARD OF TRUSTEES

FOR THE MONTHS JANUARY & FEBRUARY 2015 On Tuesday we will welcome three new board members: Lyn Ziegenbein, Executive Director Emerita with the Peter Kiewit Foundation, Erin Limas, CFO of Borsheims Jewelry and Scott Semrad, Principal at Urban Village Development, we’re very happy to have all three join Goodwill’s board. Goodwill’s 2013 strategic plan called for the initiation of four research projects: a community needs assessment, a YouthBuild longitudinal study, a market research project aimed at retail and a long range facility planning study. Two of these projects are nearing completion: the community needs assessment and the YouthBuild longitudinal study, both conducted by a third-party (a UNL professor on sabbatical and the UNO College of Public Affairs and Community Service respectively). Staff will report the results to the appropriate committees of the board in the next two months. We are under contract with an area firm to begin the market research project, scheduled for mid-summer completion. All of this information will be critical as Joe Lang leads the agency through the facility planning study. For a variety of reasons these research projects are extremely valuable to Goodwill as we move toward becoming an even more valuable resource to the communities we serve. Four brand new employment programs started here at Goodwill in the last twelve months: VA laundry, Project Employment, ReStart and GoodHire. Their purposes vary widely, from employment for people with disabilities /veterans to youngsters aging out of foster care system to people leaving correctional institutions to individuals eligible for public assistance. These four are in addition to 15 others under Goodwill’s umbrella that has operated for many years. I bring this to your attention not only to highlight the reach Goodwill has in the community but to point out the behind the scenes work that goes into their initiation. The VA laundry is a Federal, AbilityOne contract that required a tremendous amount of research and negotiation with the VA, SourceAmerica and the local business responsible for the actual operation. Project Employment is funded in part through the State of Nebraska but primarily through privately funded Nebraska Children and Families. Restart and GoodHire are funded by the State of Nebraska through two different departments, the Department of Corrections and HHS respectively. All of the examples above are first vetted internally to make sure they meet the agency’s mission and that we have the resources necessary to support the program once it’s up and running. From there the state funded examples take legislative action, led by Andy Bradley. Prior to the actual start date, every department in the organization is involved, from accounting and human resources, to fund development, quality assurance, information technology and marketing. To steal a famous line by an unknown author….“it takes a village to raise a child”, it really does take the dedication of a very talented group of Goodwill employees to bring a program on-line. I am proud of what they all do for Goodwill and the people we work with.

As of the end of February, Goodwill employed a total of 653 people. Of that number, 139 work on contracts at the Veterans Hospital, Offutt AFB, the Denney Federal Building in Lincoln, the Zorinsky building in downtown Omaha and 28 work at other commercial contracts. Retail operations employs 402 people, Employment & Training employs 48 and 36 provide administrative support. To date, our various training programs have worked with 4,199 people and helped find employment for 91 at an average starting wage of $10.72 per hour. YouthBuild North has reached its maximum enrollment of thirty late in the month of January. South has a total enrollment of eleven, not quite at its max of fifteen. Customer Connect began a new cohort of ten early this week. GoodHire is beginning to see an increase in referrals after state employees met with Employment First providers earlier this year. All WIA funded services are meeting required enrollment goals. The federal Workforce Investment Act was reauthorized as the Workforce Investment Opportunity Act by congress late last year. The regulations have yet to be published but despite that, it has caused a flurry of activity. Goodwill staff is intimately involved; it should be a win win situation for this organization. The VA laundry contract is moving along nicely after some significant challenges early on. We have a terrific relationship with the owner of the business responsible for operations; the challenge was with VA administrators. Issues have been resolved to everyone’s satisfaction, now on to a signed contract (soon, I hope). All other AbilityOne contracts are operating as they should, although changes in work specs, wages and renegotiations keep everyone on their toes. With March upon us the commercial grounds crews are gearing up for a busy spring season. Total retail revenue for the month of February was slightly above budget and slightly below budget for the first two months. Significant changes in pricing, customer service and material collection helped with the customer count up to 9,200 for the month. Emphasis was placed on expense maintenance, resulting in a budgeted expense to revenue ratio for the month. The first two months of the year have the organization in a net loss position for operations of $303,249. The majority of that is a required accounting of $245,231 for the agency’s self-insured health insurance. This is not a cash outlay, just recognition of the required reserve. Two final bits of good news: later this month Goodwill will be recognized by the Omaha Chamber with a Business Excellence Award, the second in a three year period. And the biggest news is that we received a notice of closure for the OFCCP complaint that originated nine years ago. Staff will provide an update on this at the board meeting on Tuesday.

Frank McGree President & CEO

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BOARD OF TRUSTEES MEETING

JANUARY 20, 2015 PRESENT: Mark Brasee, Mark Stokes, Rob Mitchell, Liz Mazzotta, Dave Anderson, Brian Csipkes, Dick Frandeen, R.J. Neary, Joe Olsen, Daniel Padilla, Carol Russell STAFF: Frank McGree, Andy Bradley, Randy Parks, Pauli Bishop, Linda Kizzier, Todd Milbrandt, Dave Pfeffer GUESTS: Bobbie Jo Howard and Maurisa Machacha Mark Brasee called the meeting to order at 4:06 p.m. and asked Linda Kizzier to introduce the guests. Linda introduces Bobbi Jo Howard and Maurisa Machacha. Bobbi Jo is a Career Specialist in the Partnership WIA Youth Program. She works one on one with the program participants in Douglas and Sarpy counties. She has done a great job with Maurisa. Maurisa Machacha has been in our WIA Youth program for the last two years. She is working on obtaining her GED and was just hired at Dial America yesterday and she works for a temp agency as well. Maurisa was separated from her family at the age of 19. Her family was deported back to Botswana and she was sent to Omaha by herself. She moved into a shelter and was introduced to the WIA Youth Program by General Assistance. She is very grateful to Goodwill and the programs that we offer. Maurisa says she wouldn’t be anywhere close to her education and career goals if it wasn’t for Goodwill and Bobbi Jo. Bobbie Jo has been very helpful to Maurisa with anything that she needs from a referral for a job to pointing her in the right direction if Maurisa needs help with services that we do not provide. Maurisa’s career goals are to become a sound engineer or a flight attendant one day. APPROVAL OF THE CONSENT AGENDA Mark Brasee asked if there were any questions or comments regarding items on the Consent Agenda; there were none. He then asked for a motion to approve the Consent Agenda. Mark Stokes made the motion and R.J. Neary seconded. Motion carried unanimously. INVESTMENT COMMITTEE Dave Anderson gave an update on the January 16th Investment Committee meeting. The current allocation for the endowment fund is 12.31%. We are at 62.65% for equities and 37.35% for fixed. This is outside of the Investment Committees target. Per Board policy, target is 60% equities and 40% fixed. The Committee has recommended that we rebalance so were back within our target range. We will do that by allocating $108K out of our equity portfolio for our endowment funding for 2015 and an additional $45K

2

out of the Vanguard international funds and put it into the Vanguard inter-term bond index fund. This will put us back in the 60/40 split. Unrealized gain for 2014 was $177K. This was recognized in the financials at the end of the year. Most accounts are performing well, with the exception being our International equities. The International equity is to be expected, given their market. DEVELOPMENT COMMITTEE Mark Stokes congratulates Erin Swanson Russell and the rest of the Development department for their phenomenal results. We raised over $5M dollars. Highlights include: Goodwill Society. This was started in April and we received 57 commitments equaling $166 K. Mark’s goal for 2015 is 100 Goodwill Society commitments. The Committee has added new member, Goodwill lifetime member Mike Leighton. Mark Stokes encourages everyone to sign up to host a Board Social. So far, we have one Board Social scheduled and our goal this year is to have eight. Erin will email everyone their 2014 and 2015 engagement trackers. Erin thanks everyone for their continued support for fund and resource development. Erin Swanson Russell reports that for the first time in 30 years, United Way has opened up their grant process. We are putting in an application this week for three different programs for $300K. United Way came to us and asked us to apply. Connie Ryan has offered to open doors for Erin in the community. She has helped Erin establish relationships with Lisa Roskens, Henry Davis and Mike Cassling. We are applying for the Department of Labor grant for YouthBuild. Part of the matching components is that we have $150K in matching funds. Erin is meeting with Scott Heigler next week to talk about initiatives to get the funds raised so we can show that we have some active participation in YouthBuild. NOMINATING COMMITTEE Liz Mazzotta reports that the Nominating Committee has four items that the Board needs to take action on today.The re-electing of our existing Board members whose term expires in 2015, nominating new Board members, nominating new life members and slate of officers. There are two Board members who are coming off the Board, Dan Smith and Mike Geis. Liz thanked them for their service and we will send them a thank you letter as well. Liz states that the class of 2015 was contacted to ask if they would agree to serve an additional three year term. They are: Larry King, Joe Lempka, RJ Neary, Rob Mitchell, Joe Olsen and Carol Russell. Everyone has consented to have their names nominated and have all agreed to continue to serve. The Nominating Committee has nominated Scott Semrad, Principal of Urban Village Development and Lyn Ziegenbein, Executive Director Emerita to the Peter Kiewit Foundation. New Life members status nominated are Tony Payne and Mike Leighton. Slate of officers for 2015-2016: Mark Brasee, Chairman of the Board, Joe Lempka, Vice Chairman, Mark Stokes, Secretary, Rob Mitchell, Treasurer and Liz Mazzotta as Chairman Emeritus. Mark Brasee called for a motion to approve all four nominations. Dave Anderson made the motion; RJ Neary seconded. Motion carried unanimously.

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PRESIDENT’S REPORT Frank McGree thanks Mike Geis and Dan Smith for their service to Goodwill. They have both been on our Board for at least three terms and have offered a wealth of knowledge in helping our organization get to the next level. We are hosting Delegate Assembly in June 2016. It is an International event. Goodwill CEO’s along with Board members and program participants attend this event. We are expecting 400-500 attendees. We are starting to get organized for this event. The first meeting will be around March. We are really looking forward to have the opportunity to host and believe it will be a successful event. Frank asks Randy Parks to give an update on the terms of the 84th & Center Lease. Randy reports that our lease will expire for our 84th & Center store in February. Randy, Ryan Zabrowski and Mark Brasee have been working with the property manager to negotiate the new lease. Right now, we have come to terms with everything. Mark Brasee polished the lease last week and it is now back in the property manager’s hands and hopefully we’ll have a response from them quickly. Randy asks for the Board’s approval of the basic outline so we can get the lease signed and executed. We’ve agreed to a five year lease with two five year extensions. We decided to stay at this location because there is not any available property in this area that fits our needs. The rent will increase, it is $13.24 per square foot for the first three years and it will increase to $13.82 per square foot after that. We were able to get a cap on CAM fees at $434.29 a month. There is a maximum of 3% increase every year for the next five years. We negotiated a replacement of three of the HVAC units on the roof. The ones that they are not replacing we have a cap on maintenance for those until they replace them. Randy feels that this is the best lease that we have negotiated as far as being able to protect us from big expenses down the road. They have also agreed to add a drive-thru lane for us which help with donation drop offs. Mark made the motion to approve the lease and authorize the Executive Committee to approve Frank to sign the lease. Liz Mazzotta made the motion. Dave Anderson seconded. Motion carried unanimously. At 4:40 p.m. the Board met in executive session to discuss the compensation for Executive Staff. A confidential memo is on file in the Chief Financial Officer’s office that outlines authorized salaries. Submitted by, Reviewed by,

Tashana Barrios Mark Stokes Recording Secretary Board Secretary

3/12/2015

GOODWILL INDUSTRIES, INC.OMAHA, NEBRASKACALCULATION OF UNREALIZED GAIN/(LOSS)FY 2015

AS OF AS OF AS OF 1/1/2015 1/31/2015 2/28/2015

CORPORATE BONDS - UBSBOOK VALUE 201,731.20 206,907.50 206,907.50 MARKET VALUE 201,731.20 207,779.00 206,555.30 UNREALIZED GAIN (LOSS) 871.50 (352.20) CHANGE FM PRIOR MONTH 6,047.80 (1,223.70)

SHORT TERM BOND FUND - VANGUARDBOOK VALUE 329,642.39 329,642.39 329,642.39 MARKET VALUE 329,642.39 333,110.02 331,514.68 UNREALIZED GAIN (LOSS) 3,467.63 1,872.29 CHANGE FM PRIOR MONTH 3,467.63 (1,595.34)

INTERMEDIATE TERM BOND FUND - VANGUARDBOOK VALUE 712,374.08 757,374.08 757,374.08 MARKET VALUE 712,374.08 780,810.34 769,178.13 UNREALIZED GAIN (LOSS) 23,436.26 11,804.05 CHANGE FM PRIOR MONTH 68,436.26 (11,632.21)

GENERAL INVEST - VANGUARDBOOK VALUE 1,830,395.34 1,695,262.87 1,695,262.87 MARKET VALUE 1,830,395.34 1,652,901.61 1,747,751.40 UNREALIZED GAIN (LOSS) (42,361.26) 52,488.53 CHANGE FM PRIOR MONTH (177,493.73) 94,849.79

ENDOWMENT - VANGUARDBOOK VALUE 255,510.22 236,646.69 236,646.69 MARKET VALUE 255,510.22 230,733.35 243,973.71 UNREALIZED GAIN (LOSS) (5,913.34) 7,327.02 CHANGE FM PRIOR MONTH (24,776.87) 13,240.36

GRAND TOTALBOOK VALUE 3,329,653.23 3,225,833.53 3,225,833.53 MARKET VALUE 3,329,653.23 3,205,334.32 3,298,973.22 UNREALIZED GAIN (LOSS) (20,499.21) 73,139.69 CHANGE FM PRIOR MONTH (124,318.91) 93,638.90

ASSET ALLOCATION GOALPERCENT INVESTED IN EQUITIES 60.0% 58.77% 60.37%PERCENT INVESTED IN FIXED INCOME 40.0% 41.23% 39.63%TOTAL 100.0% 100.0% 100.0%

Year to DateVariance/ Variance Variance Variance/Last Year from Budget Actual INCOME Actual from Budget Last Year

22,109 (99,294) 1,477,782 Sales 3,122,282 (103,995) 115,324 11,814 21,327 118,833 Commercial Contracts 223,855 36,843 40,069 58,881 43,186 428,317 Federal Contract Revenue 813,993 34,731 99,733 90,308 (112,158) 363,134 Employment & Training 695,997 (200,548) 170,316 3,564 1,267 5,267 Investment and Misc. Income 6,825 (1,175) (693) 9,770 7,517 11,683 Contributions-Unrestricted 15,208 6,876 11,494

- - - Unrealized Invest Gain/(Loss) - - - (40,000) 10,000 10,000 Contributions-Temp Restricted 10,000 10,000 (40,000)

5,500 5,500 5,500 Capital Gains 5,500 5,500 5,500 161,946 (122,655) 2,420,516 Total Income 4,893,660 (211,768) 401,743

EXPENSE(183,666) 92,953 1,422,209 People 3,126,106 (53,876) (448,387)

41,850 (41,310) 606,206 Facilities and Equipment 1,172,387 (30,413) 36,750 18,557 19,450 12,077 Public Relations & Advertising 41,322 23,256 16,452

1,021 1,759 13,005 NISH Contract Fees 27,701 2,174 (542) (334) (1,099) 13,525 GII Dues 23,055 1,886 (59)

(35,813) (26,592) 206,309 Supplies 430,253 (64,733) (116,225) (4,102) 2,629 16,262 Travel & Seminar 26,937 8,570 (6,666)

(32,384) (6,877) 128,765 Miscellaneous 259,150 (3,765) (92,530) (2,134) 1 39,999 Performance Incentives 79,998 2 (4,384)

(197,005) 40,914 2,458,357 Total Expenses 5,186,909 (116,899) (615,591) INCOME BEFORE CONTRIBUTIONS

(37,841) Net Operating Gain/(Loss) (293,249)

(35,059) (81,741) (37,841) Net Total Gain/(Loss) (293,249) (328,667) (213,848)

Goodwill Industries, Inc.Comparative Income Statement

Feb-15

CURRENT ASSETS 2015 2014 Variance

Cash 283,068 4,701 278,367 5,921.44 %Cash - Access Bank 6,715 91,694 (84,979) (92.68) %Short Term Investments - - - N/A %Accounts Receivable - Trade 1,311,190 895,528 415,662 46.42 %Accounts Receivable - Internal 22,107 14,710 7,397 50.29 %Accounts Receivable - Pledges 30,006 38,131 (8,125) (21.31) %Unbilled Employment and Training Income - - - N/APrepaid Expenses 966,640 844,532 122,108 14.46 %New Goods Inventory 32,913 67,907 (34,994) (51.53) %Inventory 403,576 403,576 - 0.00 % TOTAL CURRENT ASSETS 3,056,215 2,360,779 695,436 29.46 %

FIXED ASSETS

Furniture and Fixtures 1,933,929 1,852,655 81,274 4.39 %Production Equipment 6,287,962 6,076,478 211,484 3.48 %Transportation Equipment 1,066,743 1,091,868 (25,125) (2.30) %Buildings and Improvements 35,377,367 32,437,111 2,940,256 9.06 %Leasehold Improvements 1,170,776 1,170,776 - 0.00 %Construction in Progress - 1,373,383 (1,373,383) (100.00) %Land 8,071,673 8,071,673 - 0.00 %Less Accumulated Depreciation (12,914,576) (11,225,607) (1,688,969) 15.05 % TOTAL FIXED ASSETS 40,993,874 40,848,337 145,537 0.36 %

OTHER LONG TERM ASSETS

UBS (Piper Jaffray) 206,907 283,255 (76,348) (26.95) %Vanguard Investment Services, Inc. - Endowment 236,647 260,427 (23,780) (9.13) %Vanguard Investment Services, Inc. - General 2,782,279 2,648,920 133,359 5.03 %Beneficial Interest in Assets Held at Omaha Community Foundation 59,297 59,297 - 0.00 %Company Owned Life Insurance 931,116 931,116 - N/A %Company Owned Mutual Funds 77,862 77,862 - N/A % TOTAL LONG TERM ASSETS 4,294,108 4,260,877 33,231 0.78 %

TOTAL ASSETS 48,344,197 47,469,993 874,204 1.84 %

LIABILITIES

Accounts Payable Trade 628,196 505,885 122,311 24.18 %Accrued Payroll and Taxes 1,866,392 1,510,284 356,108 23.58 %NISH Commissions Payable 27,132 13,678 13,454 98.36 %Mortgage Note Payable 20,121,114 14,383,663 5,737,451 39.89 %Bonds Payable 995,118 1,079,161 (84,043) (7.79) %Note Payable-Construction - 5,702,752 (5,702,752) (100.00) %Derivative Liability - - - #DIV/0! %Line of Credit - FNBO - - - #DIV/0! %Note Payable Short Term - - - #DIV/0! %Heatlh Insurance Reserve Liability 179,891 - 179,891 #DIV/0!Contingent Liability 1,057,942 1,057,942 - 0.00 %Deferred Revenue - Other - - - #DIV/0! % TOTAL LIABILITIES 24,875,785 24,253,365 622,420 #DIV/0! %

- NET ASSETS -

- Unrestricted Funds - End of Prior Year 18,048,379 18,144,330 (95,951) (0.53) %YTD Gain/(Loss) (259,491) (69,038) (190,453) 275.87 %Unrestricted Funds - Current Balance 17,788,888 18,075,292 (286,404) (1.58) %

Temporarily Restricted Funds - End of Prior Year 5,620,414 5,058,834 561,580 11.10 %YTD Gain/(Loss) (33,759) (10,367) (23,392) 225.64 %Temporarily Restricted Funds - Current Balance 5,586,655 5,048,467 538,188 %

Permanently Restricted Funds - End of Prior Year 92,869 92,869 - 0.00 %YTD Gain/(Loss) - - - #DIV/0! %Endowment Fund (Permanently Restricted) - Current Balance 92,869 92,869 - 0.00 %

TOTAL NET ASSETS 23,468,412 23,216,628 251,784 1.08 %

TOTAL LIABILITIES and NET ASSETS 48,344,197 47,469,993 874,204 1.84 %

Goodwill Industries, Inc.Comparative Balance Sheet

February 28, 2015

ASSETS% Change

LIABILITIES and NET ASSETS

.

BENCHMARKS

ACTUAL RECOM'D

RATIO 2015 2014 NORM MEDIAN OPTIMUM MINIMUM BUDGET

1 QUICK 0.46 0.01 2.66 1.94 15.29 1.00

2 CASH vs CURRENT LIABILITIES 0.11 0.05 1.48 1.64 9.00 N/A

3 CASH vs CURRENT ASSETS (%) 9.48% 4.14% N/A N/A N/A N/A

4 CURRENT 1.21 1.11 3.15 2.39 5.67 1.50

5 FUND BALANCE (0.01) 0.43 0.75 0.67 0.94 0.60

6 TOT REVENUE vs TOT ASSETS #REF! 0.57 1.17 1.53 3.39 N/A

7 RETURN ON ASSETS (%) #REF! -1.0% 6.30% 7.20% N/A 4% to 8%

8 RETURN ON FIXED ASSETS (%) #REF! -1.1% 8.40% 10.90% N/A N/A

9 RETAIL OPS - EXP vs REV (%) #REF! 87.7% N/A 76.00% N/A N/A 78.0%

10 NISH - EXP vs REV (%) #REF! 90.7% N/A 80.00% N/A N/A 82.0%

11 EMP & TRAINING - EXP vs REV (%) #REF! 103.6% N/A 85.00% N/A N/A 102.7%

12 SUPPORT - EXP vs TOTAL - REV (%) #REF! 12.9% N/A 12.80% N/A N/A 14.0%

13 PEOPLE COST - EXP vs REV (%) #REF! 60.3% N/A 65.00% N/A N/A 58.4%

14 TOTAL EXPENSE VS TOTAL REVENUE #REF! 102.8% 90.1% 95.10% 89.4% N/A 97.4%

1. Unrestricted dollars of cash and near cash assets, available to pay each dollar of accounts payable.

2. Unrestricted dollars of cash and near cash assets, available to pay each dollar of current liabilities.

3. Percentage of total unrestricted current assets represented by cash and near cash assets.

4. Unrestricted current assets available to pay each dollare of current liabilities.

5. Proportion of unrestricted assets that are owned free and clear.

6. Dollars of current year to date revenue (annualized), excluding capital campaign contributions, per dollar of investment.

7. Net operating profit year to date (annualized), as a percentage of total investment.

8. Net operating profit year to date (annualized), as a percentage of fixed investment.

9 to12. Designates profitability of the department. (year to date)

13. Measures burden of the overhead department. (year to date)

14. Salaries/wages plus all related people expense as a percentage of total revenue. (year to date)

Goodwill Industries, Inc.FINANCIAL POSITION EFFICIENCY MEASURES

2/28/2015

GOODWILL INDUSTRIESA/R AGING ANALYSIS

February 28, 2015

ACCOUNT TOTALSALVAGE 584.86 0.00 0.00 0.00 25.00 609.86DELL RECYCLING 6,189.94 0.00 0.00 0.00 0.00 6,189.94VOUCHERS 0.00 0.00 0.00 0.00 0.00 0.00REPACK 38,246.80 0.00 0.00 19.24 155.39 38,421.43ZORINSKY 100,445.62 0.00 0.00 0.00 0.00 100,445.62OFFUTT 279,866.76 1,620.00 0.00 0.00 0.00 281,486.76POSTAL #1 29,527.62 0.00 0.00 0.00 0.00 29,527.62POSTAL #2 (BITC) 42,904.00 0.00 0.00 0.00 0.00 42,904.00DENNEY 98,738.36 0.00 0.00 0.00 0.00 98,738.36VA 28,330.99 0.00 0.00 0.00 0.00 28,330.99VA GRAND ISLAND 0.00 0.00 0.00 0.00 0.00 0.00VA LAUNDRY 73,094.03 0.00 0.00 0.00 0.00 73,094.03OTHER CONTRACTS 70,733.18 1,457.62 0.00 0.00 135.00 72,325.80GREENKLEEN 0.00GROUNDS MAINTENANCE 19,967.79 0.00 0.00 0.00 0.00 19,967.79SNOW REMOVAL 82,935.60 0.00 0.00 0.00 0.00 82,935.60SSAS 2,675.25 0.00 0.00 0.00 0.00 2,675.25AMERICORPS 11,923.47 13.88 0.00 0.00 0.00 11,937.35YOUTHBUILD - DOL 48,606.11 0.00 0.00 0.00 0.00 48,606.11CUSTOMER CONNECT 8,830.30 0.00 0.00 0.00 0.00 8,830.30RESCARE 11,291.33 0.00 0.00 0.00 0.00 11,291.33WIA 177,686.80 0.00 600.00 0.00 0.00 178,286.80GOODHIRE 68,928.50 0.00 0.00 0.00 0.00 68,928.50YOUTHBUILD- MCC 0.00 0.00 0.00 0.00 0.00 0.00WORK EXPERIENCE 125,624.00 0.00 0.00 0.00 0.00 125,624.00OTHER E&T 0.00 0.00 0.00 0.00 0.00 0.00CAPITAL CAMPAIGN - BILLED 0.00 0.00 0.00 0.00 0.00 0.00CAPITAL CAMPAIGN - NOT BILLED 0.00 0.00 0.00 0.00 0.00 0.00TOTAL 1,327,131.31 3,091.50 600.00 19.24 315.39 $1,331,157.44PERCENT 99.7% 0.2% 0.0% 0.0% 0.0% 100.0%

CURRENT 1-30 31-60 61-120 OVER 120

Employment & Training ServicesFebruary 2015

sorting New Monthly TotalRehabilitation Services 15 YTD 14 YTD 13 YTD

Facility Based Services 0 0 0 2 1One Stop Customer Visits 2,278 2,278 5,043 4,974 5,869One Stop-Unique Visits For Month 1,622 1,622 3,166 2,793 3,059Employabilty and Life Skills (SSAS) 5 40 43 63 53Sum 1,627 2,318 5,086 5,039 5,923

sorting New Monthly TotalEmployment and Training 15 YTD 14 YTD 13 YTD

PWI 0 0 0 0 0Customer Connect 0 29 29 29 91Sum 0 29 29 29 91

sorting New Monthly TotalYouth Programs 15 YTD 14 YTD 13 YTD

Mentoring 0 0 0 0 0Work Experience 4 87 87 78 96Youth Build 14 49 49 31 32Partnership Program 8 249 249 232 301Sum 26 385 385 341 429

sorting New Monthly TotalCareer Development 15 YTD 14 YTD 13 YTD

Job Fairs 153 153 171 195 0Ready Total Visitors 89 89 154 158 0READY Unique Visitors 51 51 89 45 0WorkSkills 16 16 32 47 0Project Employment 5 93 99 0 0GoodHire 14 44 52 0 0Sum 223 379 476 353 0

sorting New Monthly TotalAdult and Dislocated Worker 15 YTD 14 YTD 13 YTD

Dislocated Worker 2 48 48 46 72Adult 17 299 299 273 283Sum 19 347 347 319 355

New Monthly Total 15 YTD 14 YTD 13 YTD

1,627 2,318 5,086 5,039 5,923Rehabilitation Services

0 29 29 29 91Employment and Training

26 385 385 341 429Youth Programs

223 379 476 353 0Career Development

19 347 347 319 355Adult and Dislocated Worker

1,895 3,458 6,323 6,081 6,798Grand Total

Wednesday, March 04, 2015 Page 1 of 3

Job Placement

February 2015Employment Training Services

15 YTD 14 YTD 13 YTD 15 YTD AVG 14 YTD AVG 13 YTD AVGMonthlyProgram

Customer Connect 3 5 5 3 $10.56 $9.05 $11.58

WIA Youth 12 17 35 44 $9.32 $9.25 $8.84

PWI 0 0 0 0 $0.00 $0.00 $0.00

Work Experience 0 0 1 3 $0.00 $7.50 $6.50

SSAS 4 4 6 8 $9.66 $8.66 $7.04

Youth Build 5 9 0 1 $8.68 $0.00 $7.25

Dislocated Worker 1 2 3 51 $12.63 $13.83 $11.33

Adult 10 33 20 38 $12.46 $11.75 $11.09

GoodHire 3 7 0 0 $14.12 $0.00 $0.00

Project Employment 9 14 0 0 $8.90 $0.00 $0.00

$10.72 $9.66 $10.0714847 91 70Composite**

**Persons may be counted more than once if they received services from more than one program.

Wednesday, March 04, 2015 Page 2 of 3

Units of Service and Revenue by Agency

January 2015Employment and Training Services

Agency Percent of RevenuePercent Of Referrals

9% 18%Department of Education

4% 18%Department of Labor (Youth Build)

2%Ameri-Corps (Youth Build)

4% 1%State Probation

64% 57%Workforce Development - WIA*

*Referrals for the Partnership program are received from a variety of sources, however revenue is received from WIA funds.

Wednesday, March 04, 2015

521 521140 140

79% 79%46 46

296 296

Goodwill Employees:Federal Employees:

Percent with Disabilities:New Clients:

Community Service Volunteers:

2015 YTD

Human Resources

Page 3 of 3

Goodwill Industries, Inc., Serving Eastern Nebraska and Southwest Iowa2015 Balanced Scorecard

Page 1 Updated: 3/12/2015

Performance Indicators2015

Year End Goal

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15YTD

Target

2015YTD

ResultsOwner

1. Total Persons Enrolled 1,245 911 69 845 980 Employment & Training; Linda Kizzier

2. Agency Operating Profit 2.56% -9.18% -0.88% 1.42% -5.08% Accounting; Pauli Bishop

3. Revenue Growth 10.01%. 10.68% 9.05% 14.47% 9.87% Accounting; Pauli Bishop

4. Percent of Admin Expenses to Total Revenue 13.85% 19.05% 15.41% 13.85% 17.26% Accounting; Pauli Bishop

5. Safety Incident Rate (Employees) <1.75 0.00 0.00 < 1.75 0.00 Human Resources; Dave Pfeffer

Meeting Goal TOTAL: 2 2 2Not Meeting Goal TOTAL: 3 3 3

Development February Year to Date Comparison

Comparison 2014 vs 2015

Appeal or Campaign Development YTD 2014 Development YTD 2015

Campaign Fund '14 # of gifts '14 Received/Pledged '14 Fund '15 # of gifts '15 Received/Pledged '15

Direct Mail Grand Total Unrestricted 6 $185 Unrestricted 11 $308

2013 Fall Direct Mail Appeal Unrestricted 6 $185 Unrestricted 1 $30

2015 Direct Mail Survey Unrestricted 5 $181

2014 Fall Direct Mail Campaign Unrestricted 1 $25

2014 Fall Planned Giving Mailer Campaign Unrestricted 4 $72

Special Campaign Totals 21 $2,736.50 19,500 $29,896.25

Omaha Gives! Total*** Unrestricted 0 $0.00 Unrestricted 0 $0.00

General Commitment Total*** Unrestricted 2 $1,232.50 Unrestricted 2 $70.00

Personal Solicitation Commitment Total*** Unrestricted 3 $420.00 Unrestricted 3 $3,000.00

Online Commitment Total(Not Omaha Gives!)*** Unrestricted 0 $0.00 Unrestricted 0 $0.00

Good Guys Commitment Total*** Unrestricted 16 $1,084.00 Unrestricted 12 $11,831.00

Goodwill Golf Classic Commitment Total*** Unrestricted 0 $0.00 Unrestricted 1 $7,000.00

Planned Giving Commitment Total Unrestricted 0 $0.00 Unrestricted 0 $0.00

Round It Up Campaign Commitment Total Unrestricted 0 $0.00 Unrestricted 19,480 $7,334.23

Memorial Commitment Total*** Unrestricted 0 $0.00 Unrestricted 0 $0.00

Pay Ins Unrestricted 0 $0.00 Unrestricted 2 $661.02

Annual Major Restricted Commitments Total Restricted 2 $50,402.97 Restricted 3 $670,183.00

Total Revenue in Gifts and Commitments $53,324.47 $700,387

Total Number of Gifts with Round It Up 28 19,514

Total Number of Gifts without Round It Up 28 34

Capital Campaign Pledge Payments 2 $25,000.00 1 $10,000

Other Pledge Payments 1 $25,402.97 2 $51,500

Commitments Overview

Campaign Fund FundAnnual Major Restricted Commitments - Private Restricted 1 $25,000 Restricted 2 $11,721

Annual Major Restricted Commitments - Public Restricted 1 $25,403 Restricted 1 $658,462

Total Unrestricted Commitments - Private Unrestricted 27 $2,922 Unrestricted 29 $22,209

Total Round It Up Commitments - Private Unrestricted 0 $0 Unrestricted 19,480 $7,334

Total Pay In Commitments - Private Unrestricted 0 $0 Unrestricted 2 $661

Total Private Commitments - ALL Restrict/Unrestricted 28 $27,922 Restrict/Unrestricted 31 $33,930

Total Public Commitments - ALL Restricted 1 $25,403 Restricted 1 $658,462

Total Round It Up Commitments - Private - ALL Unrestricted 0 $0 Unrestricted 19,480 $7,334

Total Pay In Commitments - Private Unrestricted 0 $0 Unrestricted 2 $661

Goodwill Society Commitment Total*** Unrestricted 1 $1,185 Unrestricted 14 $16,211

Strength Circle ($25,000 +) Unrestricted 0 $0 Unrestricted 0 $0

Opportunity Circle ($10,000 - $24,999) Unrestricted 0 $0 Unrestricted 0 $0

Integrity Circle ($5,000 - $9,999) Unrestricted 0 $0 Unrestricted 0 $0

Dignity Circle ($2,500 - $4,999) Unrestricted 0 $0 Unrestricted 1 $3,250

Hope Circle ($1,000 - $2,499) Unrestricted 1 $1,185 Unrestricted 8 $10,211

Sustaining Circle ($500 - $999) Unrestricted 0 $0 Unrestricted 5 $2,750

The number of personal visits completed during the year by members of the Development Department, Committees & Board.These can include visits with constituents, donors, partners, politicians, community leaders, etc.

Employee # Visits/Calls 2015 # Visits/Calls 2014

Erin Swanson Russell - Director of Development 36 12

Elizabeth Donner - Community Development Manager 21 NARebecca Armstrong - Development & Marketing Coordinator 16 NA

Total Year to Date 73 12

Development Activity Report for Balance Scorecard Comparison 2015 vs 2014

Updated by RLA on 3/9/2015

Development February Month to Date Comparison

Comparison 2014 vs 2015

Appeal or Campaign Development MTD 2014 Development MTD 2015

Campaign Fund '14 # of gifts '14 Received/Pledged '14 Fund '15 # of gifts '15 Received/Pledged '15

Direct Mail Grand Total Unrestricted 1 $5 Unrestricted 7 $227

2013 Fall Direct Mail Appeal Unrestricted 1 $5 Unrestricted 0 $0

2015 Direct Mail Survey Unrestricted 4 $180

2014 Fall Direct Mail Campaign Unrestricted 0 $0

2014 Fall Planned Giving Mailer Campaign Unrestricted 3 $47

Special Campaign Totals 11 $1,902.00 16,635 $15,691.84

Omaha Gives! Total*** Unrestricted 0 $0.00 Unrestricted 0 $0.00

General Commitment Total*** Unrestricted 1 $1,185.00 Unrestricted 2 $70.00

Personal Solicitation Commitment Total*** Unrestricted 2 $170.00 Unrestricted 2 $2,000.00

Online Commitment Total(Not Omaha Gives!)*** Unrestricted 0 $0.00 Unrestricted 0 $0.00

Good Guys Commitment Total*** Unrestricted 8 $547.00 Unrestricted 0 $0.00

Goodwill Golf Classic Commitment Total*** Unrestricted 0 $0.00 Unrestricted 1 $7,000.00

Planned Giving Commitment Total Unrestricted 0 $0.00 Unrestricted 0 $0.00

Round It Up Campaign Commitment Total Unrestricted 0 $0.00 Unrestricted 16,629 $6,338.86

Memorial Commitment Total*** Unrestricted 0 $0.00 Unrestricted 0 $0.00

Pay Ins Unrestricted 0 $0.00 Unrestricted 1 $282.98

Annual Major Restricted Commitments Total Restricted 1 $25,000.00 Restricted 2 $11,721.00

Total Revenue in Gifts and Commitments $26,907.00 $27,640

Total Number of Gifts with Round It Up 12 16,644

Total Number of Gifts without Round It Up 12 15

Capital Campaign Pledge Payments 0 $0.00 $0

Other Pledge Payments 0 $0.00 $0

Commitments Overview

Campaign Fund # of gifts Received/Pledged Total Fund

Annual Major Restricted Commitments - Private Restricted 1 $25,000 Restricted 2 $11,721

Annual Major Restricted Commitments - Public Restricted 0 $0 Restricted 0 $0

Total Unrestricted Commitments - Private Unrestricted 12 $1,907 Unrestricted 12 $9,297

Total Round It Up Commitments - Private Unrestricted 0 $0 Unrestricted 16,629 $6,339

Total Pay In Commitments - Private Unrestricted 0 $0 Unrestricted 1 $283

Total Private Commitments - ALL Restrict/Unrestricted 13 $26,907 Restrict/Unrestricted 14 $21,018

Total Public Commitments - ALL Restricted 0 $0 Restricted 0 $0

Total Round It Up Commitments - Private - ALL Unrestricted 0 $0 Unrestricted 16,629 $6,339

Total Pay In Commitments - Private Unrestricted 0 $0 Unrestricted 1 $283

Goodwill Society Commitment Total*** Unrestricted 1 $1,185 Unrestricted 2 $2,000

Strength Circle ($25,000 +) Unrestricted 0 $0 Unrestricted 0 $0

Opportunity Circle ($10,000 - $24,999) Unrestricted 0 $0 Unrestricted 0 $0

Integrity Circle ($5,000 - $9,999) Unrestricted 0 $0 Unrestricted 0 $0

Dignity Circle ($2,500 - $4,999) Unrestricted 0 $0 Unrestricted 0 $0

Hope Circle ($1,000 - $2,499) Unrestricted 1 $1,185 Unrestricted 1 $1,500

Sustaining Circle ($500 - $999) Unrestricted 0 $0 Unrestricted 1 $500

The number of personal visits completed during the year by members of the Development Department, Committees & Board.

These can include visits with constituents, donors, partners, politicians, community leaders, etc.

Employee # Visits/Calls 2015 # Visits/Calls 2014

Erin Swanson Russell - Director of Development 18 8

Elizabeth Donner - Community Development Manager 12 NA

Rebecca Armstrong - Development & Marketing Coordinator 6 NA

Total Month to Date 36 8

Development Activity Report for Balance Scorecard Comparison February 2015 vs 2014

Updated by RLA on 3/9/15

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Goodwill Industries, Inc.

Gift Acceptance Policies & Guidelines

Goodwill Industries, Inc., a not for profit organization organized under the laws of the State of Nebraska and Iowa, encourages the solicitation and acceptance of gifts to Goodwill Industries, Inc. for purposes that will help Goodwill Industries, Inc. to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to Goodwill Industries, Inc. or for the benefit of its mission. The mission of Goodwill Industries, Inc.: Goodwill changes lives and strengthens communities through education, training, and work. 1. Purpose of Policies and Guidelines

The Board of Trustees of Goodwill Industries, Inc. and its staff solicit current and deferred gifts from individuals, corporations and foundations to secure the future growth and mission of Goodwill Industries, Inc. It is the purpose of these policies and guidelines to govern the acceptance of gifts by Goodwill Industries, Inc. and to provide guidance to prospective donors and their advisors when making gifts to Goodwill Industries, Inc. The provisions of these policies shall apply to all gifts received by Goodwill Industries, Inc. for any of its programs or services.

2. Use of Legal Counsel

Goodwill Industries, Inc. shall seek the advice of legal counsel in matters relating to acceptance of gifts where appropriate. Review by counsel is recommended for:

Review of closely held stock transfers that are subject to restrictions or buy-sell agreements

Review of documents naming Goodwill Industries, Inc. as Trustee

Review of all gifts involving contracts, such as bargain sales or other documents requiring Goodwill Industries, Inc. to assume an obligation

Review of all transactions with potential conflict of interest that may invoke IRS sanctions

Other instances in which use of counsel is deemed appropriate by the Gift Acceptance Committee

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3. Conflict of Interest All prospective donors shall be strongly urged to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. Goodwill Industries, Inc. will comply with the Model Standards of Practice for the Charitable Gift Planner promulgated by the Partnership for Philanthropic Planning (formerly known as the National Committee on Planned Giving).

4. Restriction on Gifts

Goodwill Industries, Inc. will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission and priorities. Goodwill Industries, Inc. will not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those gifts that are too difficult to administer, or gifts that are for purposes outside the mission of Goodwill Industries, Inc. The Gift Acceptance Committee of Goodwill Industries, Inc. shall make all financial decisions on the restrictive nature of a gift, and its acceptance or refusal.

5. The Gift Acceptance Committee

The Gift Acceptance Committee shall consist of:

The Chairman of the Board of Trustee of Goodwill Industries, Inc.

The Treasurer of the Board of Trustees of Goodwill Industries, Inc.

The President & CEO of Goodwill Industries, Inc.

The Chairman of the Development Committee of Goodwill Industries, Inc.

Two members of the Board of Trustees, appointed by the Chairman of the Board Trustees and approved by the Board of Trustees.

Ex-Officio members shall include the Director of Development of Goodwill Industries, Inc.

The Gift Acceptance Committee is charged with the responsibility of reviewing all non-cash gifts made to Goodwill Industries, Inc., properly screening and accepting those gifts, and making recommendations to the Board on gift acceptance issues where appropriate.

6. Types of Gifts

The following gifts are acceptable:

Cash

Tangible Personal Property

Securities

Real Estate

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Remainder Interests in Property

Oil, Gas, and Mineral Interests

Bargain Sales

Life Insurance

Charitable Gift Annuities

Charitable Remainder Trusts

Charitable Lead Trusts

Retirement Plan Beneficiary Designations

Bequests

Life Insurance Beneficiary Designations

The following criteria govern the acceptance of each gift form:

Cash: Cash is acceptable in any form. Checks shall be made payable to Goodwill Industries, Inc. and shall be delivered to the President & CEO of Goodwill Industries, Inc.’s administrative offices.

Tangible Personal Property: All gifts of tangible personal property shall be examined in light of the following criteria:

o Does the property fulfill the mission of Goodwill Industries, Inc.? o Is the property marketable? o Are there any undue restrictions on the use, display, or sale of the property? o Are there any carrying costs for the property?

The Gift Acceptance Committee of Goodwill Industries, Inc. shall make the final determinations on the acceptance of other tangible property gifts.

Securities: Goodwill Industries, Inc. can accept both publicly traded securities and closely held securities.

o Publicly Traded Securities: Marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor’s signature or stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Investments Committee. In some cases applicable securities laws may restrict marketable securities; in such instance the Gift Acceptance Committee of Goodwill Industries, Inc. shall make the final determination on the acceptance of the restricted securities.

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o Closely Held Securities: Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms, can be accepted subject to the approval of the Gift Acceptance Committee of Goodwill Industries, Inc. However, gifts must be reviewed prior to acceptance to determine that:

There are no restrictions on the security that would prevent Goodwill

Industries, Inc. from ultimately converting those assets to cash The security is marketable The security will not generate any undesirable tax consequences for

Goodwill Industries, Inc.

If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. The Gift Acceptance Committee of Goodwill Industries, Inc. and legal counsel shall make the final determination on the acceptance of the closely held securities where necessary. Every effort will be made to sell non-marketable securities as quickly as possible.

Real Estate: Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to the acceptance of the real estate, Goodwill Industries, Inc. shall investigate the real estate's physical condition, including without limitation, an initial environmental review, title binder, survey, and other factors as appropriate. The cost of the investigations shall generally be an expense of the donor.

Prior to acceptance of the real estate property, the gift shall be approved by the Gift Acceptance Committee of Goodwill Industries, Inc. and by Goodwill Industries, Inc.’s legal counsel. Criteria for acceptance of the property shall include:

o Is the property useful for the purposes of Goodwill Industries, Inc.? o Is the property marketable? o Are there any restrictions, reservation, easements, or other limitations

associated with the property? o Are there carrying costs, which may include insurance, property taxes,

mortgages, or notes, etc. associated with the property? o Does the environmental audit reflect that the property is not damaged?

Remainder Interests in Property: Goodwill Industries, Inc. will accept a remainder interest in a personal residence, farm, or vacation home subject to the provisions of the above paragraph on real estate. The donor or other occupants may continue to occupy the real property for the duration of the state life. At the death of the donor,

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Goodwill Industries, Inc. may use the property or reduce it to case. Where Goodwill Industries, Inc. received a gift of the remainder interest, expenses for maintenance, real estate taxes, and property indebtedness are to be paid by the donor or primary beneficiary.

Oil, Gas and Mineral Interests: Goodwill Industries, Inc. may accept oil and gas property interests, where appropriate. Prior to acceptance of an oil and gas interest the gift shall be approved by the Gift Acceptance Committee and, if necessary, by Goodwill Industries, Inc.’s legal counsel. Criteria for acceptance of the property shall include:

o Gifts of surface rights should have a value of $20,000 or greater o Gifts of oil, gas and mineral interests should generate at least $3,000 per year

in royalties or other income (as determined by the average of the three years prior to the gift)

o The property should not have extended liabilities or other considerations that make the receipt of the gift inappropriate

o If the interest is a working interest, the organization should determine the impact on Goodwill Industries, Inc. so that it may develop a plan to minimize that impact is accepted

o The property should undergo an environmental review to ensure that Goodwill Industries, Inc. has no current or potential exposure to environmental liability

Bargain Sales: Goodwill Industries, Inc. will enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of Goodwill Industries, Inc. All bargain sales must be reviewed and recommended by the Gift Acceptance Committee and approved by the Board of Trustees. Factors used in determining the appropriateness of the transaction include: o Goodwill Industries, Inc. must be provided an independent appraisal

substantiating the value of the property o If Goodwill Industries, Inc. assumes debt with the property, the debt ratio

must be less than 50% of the appraised market value o Goodwill Industries, Inc. must determine that it will use the property, or that

there is a market for sale of the property, allowing sale within 12 months of receipt

o Goodwill Industries, Inc. must calculate the costs to safeguard, insure, and expense the property (including property tax, if applicable) during the holding period

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Life Insurance: Goodwill Industries, Inc. must be named as owner (and beneficiary) of an insurance policy before a life insurance policy can be recorded as a current and outright gift. The amount of the charitable deduction for a gift of an insurance policy varies based on the type of policy and other factors. Donors should seek advice from their own estate planning professional for such deductions.

If the donor contributes future premium payments, Goodwill Industries, Inc. will designate the additional premium payment as a gift in the year that is made. If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, Goodwill Industries, Inc. may: o Continue to pay the premiums o Convert the policy to fully paid up life insurance o Surrender the policy for its current cash value

Charitable Gift Annuities: Goodwill Industries, Inc. may offer charitable gift annuities through a partnership with the Charitable Giving Resource Center (CGRC). The minimum gift for funding is $20,000 and maximum funding is $250,000. Exceptions can be made for larger donations, but a conversation needs to be had with the CGRC before a decision is made. The minimum age for life insurance income beneficiaries of a gift annuity shall be 55. No more than two life income beneficiaries can be permitted for any gift annuity.

Annuity payments may be made on a quarterly, semi-annual, or annual schedule. The CGRC may approve exceptions to this payment schedule.

Through the CGRC, Goodwill Industries, Inc. will accept gifts of any kind in exchange for current or deferred charitable gift annuities.

Funds contributed in exchange for a gift annuity shall be set aside and invested by the CGRC during the term of the annuity payments. Once those payments have terminated, the funds representing the remaining principle contributed in exchange for the gift annuity shall be transferred to Goodwill Industries, Inc.’s general endowment, or to such specific fund as designated by the donor.

Charitable Remainder Trusts: Goodwill Industries, Inc. may accept a designation as remainder beneficiary of the charitable trust. Goodwill Industries, Inc. will not accept appointment as Trustee of a charitable remainder trust.

Charitable Lead Trusts: Goodwill Industries, Inc. may accept a designation as income beneficiary of a charitable lead trust. The Board of Goodwill Industries, Inc. will not accept an appointment as Trustee of a charitable lead trust.

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Retirement Plan Beneficiary Designations: Donors and supporters of Goodwill Industries, Inc. shall be encouraged to name Goodwill Industries, Inc. as beneficiary of the retirement plans. Such designations shall not be recorded as gifts to Goodwill Industries, Inc. until such time as the gift is irrevocable. Where the gift is irrevocable (i.e., upon death), but it is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

Bequests: Donors and supporters of Goodwill Industries, Inc. shall be encouraged to make bequests to Goodwill Industries, Inc. under their wills and trusts. Such bequests shall not be recorded as gifts to Goodwill Industries, Inc. until such time as the gift is irrevocable (i.e., upon death). Where the gift is irrevocable, but it is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

Life Insurance Beneficiary Designations: Donors and supporters of Goodwill Industries, Inc. shall be encouraged to name Goodwill Industries, Inc. as beneficiary or contingent beneficiary to their life insurance policies. Such designations shall not be recorded as current gifts to Goodwill Industries, Inc. until such time as the gift is irrevocable (i.e., upon death). Where the gift is irrevocable, but it is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

In-Kind Gift Acceptance Policy: Goodwill Industries, Inc. accepts in-kind donations that are event or program related donations that include, but are not limited to, food, facility rentals, supplies and professional services.

All items and service proposals are reviewed by Goodwill Industries’ marketing staff and Gift Acceptance Committee and may be subject to rejection if:

o They do not meet the needs of the organization. o They require additional expenditures. o They are deemed unsafe. o They are unable to perform their designed purpose.

This excludes all donations for resale in Goodwill stores.

Expensed items must be valued at $250 or more.

Goodwill Industries, Inc.’s marketing staff and Gift Acceptance Committee shall have the discretion to designate in-kind donations as they deem appropriate.

All in-kind donors will receive a gift receipt form and or letter within 48 hours of their donation stating:

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Date of goods or services.

Purpose of goods or services.

Description of goods or services.

If provided by donor or appropriate third party, the value of goods or services.

Goodwill Industries, Inc. will keep paper or electronic records of all donated goods or services.

7. Miscellaneous Provisions

Securing appraisals and legal fees for gifts to Goodwill Industries, Inc.: It shall be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel of all gifts made to Goodwill Industries, Inc. Goodwill Industries, Inc. cannot pay for, nor provide funds for, the costs of an appraisal or legal fees of the donor.

Valuation of gifts for development purposes: Goodwill Industries, Inc. shall record a gift received by Goodwill Industries, Inc. at its valuation for gift purposes on the date of gift.

Acknowledgement: Recognition of all gifts made to Goodwill Industries, Inc. and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the administrator of Goodwill Industries, Inc.

8. Reporting

All donations to Goodwill Industries must be properly documented and reported to the development and accounting offices, regardless of value, so that the gift can be recorded and acknowledged.

9. Policy Amendment and Review

The Director of Planned Giving has the authority to amend the Policy to comply with the law whenever it becomes inconsistent with the Internal Revenue Code of 1986 (the “IRC”) as amended or other applicable state or federal laws as of the date the change goes into effect. The Director of Planned Giving will provide a written report to the Gift Acceptance Committee explaining the reason for the change to the Policy. Responsibility for review of and recommended amendments to the Policy will be that of the Gift Acceptance Committee of Goodwill Industries. The Gift Acceptance Committee will review this Policy at least annually. The Gift Acceptance Committee can approve minor updates of a nonmaterial nature to the Policy; any substantial updates will be approved by the Board of Trustees. The Director of

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Planned Giving will determine whether the changes to the Policy should be submitted for approval at the next meeting of the Board of Trustees. These policies and guidelines have been reviewed and accepted by the Gift Acceptance Committee and the Board of Trustees of Goodwill Industries, Inc.

Approved on the ____________ day of _________________, 20__

Chairman, Board of Trustees, Goodwill Industries, Inc. Updated March 12, 2015 by Erin Swanson Russell