2 | GROWING GOOD | 2013 Annual Report

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OUR MISSIONFounded in 1957 as a not-for-profit, Goodwill Industries of Middle Tennessee’s mission is,

“We sell donated goods to provide employment and training opportunities for people who

have disabilities and others who have trouble finding and keeping jobs.”

Donna Yurdin | Chairman of the Board President & CEO Credo Management Consulting

As a freshman at Boston University Theological School in 1891, Edgar J. Helms dreamed of leading a missionary team in Asia. His dream almost became a reality, but news that the India

mission was financially strapped forced Helms to give up the India dream.

In its place, Edgar would accept what appeared to be an uninspiring alternative, to serve as a settlement worker in one of Boston’s worst slums and crime centers. At the age of 32, in the dilapidated Morgan’s Chapel, Helms was enough discouraged to entertain the notion that his career might be approaching the end of the road.

The end of a dream is often the beginning of a life. From this broken down house of worship, Edgar J. Helms would go on to build what is today the modern Goodwill. Through his belief in giving people a chance rather than charity, Helms initiated a movement that would bring jobs and dignity to thousands of individuals who have disabilities and others who have trouble finding and keeping jobs.

For so many of the people who walked though the doors of Goodwill’s Career Solutions in 2013, life did not turn out how they had dreamed, and their prospects for employment had reached the end of the road.

In the following pages, you will not only see numbers that reflect our amazing accomplishments for 2013, but also read the emotional stories of people who discovered, like Helms, that the end of their dream was the beginning of a new life.

Both the numbers and the stories convey our gratitude to you for your interest in our mission and your generous donations of gently-used items. We are committed to “Growing Good” and continuing to earn your support by making sure your gifts benefit the people we are privileged to serve.

Matthew Bourlakas | President & CEOGoodwill Industries of Middle Tennessee, Inc.

GROWING GOOD | 2013 Annual Report | 3

2013A YEAR OF GREAT GROWTH

1ST QUARTER JAN-MAR

2NDQUARTERAPR-JUN

3RDQUARTERJ U L - S E P

4TH QUARTER OCT-DEC

BEYOND JOBS

Launched to connect women to better jobs and better futures

630 DRESSES

Record number of dresses sold at our Wedding Gala

PARTNERSHIP

Teamed up with the Nashville Area Chapter of the American Red Cross to better serve the community during a crisis

43 JOB FAIRS

Record number of job fairs and events held during Goodwill Week

CEO CHANGE

David Lifsey retired after 40 years as President and CEO. Matthew Bourlakas began serving as the new President and CEO.

WHEELS-TO-WORK

Program established to help Goodwill employees and clients eliminate the barrier of transportation

JOB RECORDS

Monthly records set for number of people placed in jobs by Career Solutions419 in July 565 in August 640 in September

NEW LOCATIONS

Two new stores, Donation Express Centers, and Career Solutions centers opened in Hendersonville and Murfreesboro

AWARDS

Received Employer Award from the Nashville’s Mayor’s Advisory Committee for People with Disabilities

Named America’s 19th Most Inspiring Company by Forbes

Received 2013 Next Award for Social Enterprise by the Nashville Area Chamber of Commerce and the Nashville Entrepreneur Center

Named winner of the Neighborhood Builders Award by Bank of America Charitable Foundation

4 | GROWING GOOD | 2013 Annual Report

Watch Fred’s Story

GROWING GOOD | 2013 Annual Report | 5

Fred had been living the street life for three decades. “I had been off and on drugs, and I had spent most of my adult life in prison.”

When Fred was released from prison in 2012, he made a decision to not go back. “I got sick and tired of being sick and tired,” he said. “I’ve been through a lot. I was even homeless at one point in my life.”

Fred decided it was time to turn his life around. He wasn’t sure how to start over, but he thought finding a job would be a good start. “I never really had a job, so I knew I needed help,” he said. “I went to Goodwill, and they helped me understand what I needed to do to make that happen.”

Fred became highly involved in Career Solutions, completing basic computer classes,

the job readiness program, and the retail training program. His career counselor knew he needed work experience, so she found him a part-time job delivering pizzas. “I came

to Goodwill looking for a job, but they provided me with more than that,” he said. “Goodwill gave me the skills I needed to take that next step.”

That next step came two months later when Fred decided to fulfill his dream of becoming an entrepreneur. In June 2013, Fred opened a small restaurant in Nashville called “OohWee Bar-B-Q.” “I’m grateful to have my own business, and I wouldn’t have been able to do that without Goodwill’s help.”

Fred hopes his story will inspire others. “No matter where you are in life, you can change your destiny.”

FredRENOUNCING A LIFE OF CRIMEGROWING HIS DREAM

“I’m grateful to

have my own

business, and I

wouldn’t have

been able to

do that without

Goodwill’s help.”

GROWING GOOD | 2013 Annual Report | 7

Watch Shelley’s Story

6 | GROWING GOOD | 2013 Annual Report

For nearly two decades, Shelley lived a secret life. “I was a meth addict for 19 years, and then the inevitable happened,” she said.

In 2010, police arrested Shelley for the first time. The judge sentenced her to two years of supervised probation and ordered her to get a job. “During my drug addiction, I was unemployable, so I hadn’t worked in over two years.”

Shelley spent the next several months focused on conquering her addiction. She underwent seven months of treatment and attended two AA meetings every day. “Getting sober was about the hardest thing I had ever done in my life,” she said. “I don’t think I could go through that again, and that’s what keeps me sober.”

Shortly after treatment, Shelley accepted a job at Goodwill. The first few months were

challenging. “My self-confidence was just devastated, but the store staff knew what I was going through and would push me that extra bit,” she said. “I never had to hide my past, and to have that support at a place of employment is invaluable.”

In two-and-a-half years, Shelley has received several promotions. She is currently the lead processor at the Union City Goodwill store, and she is very happy. “Oh, I absolutely love my job, and I love Goodwill,” she said with a smile. “It’s a place for second chances, and when I see someone like me given a second chance, it makes me love Goodwill even more.”

When asked about the future, Shelley said she hopes to

continue her journey through life right at Goodwill. “Working for Goodwill changed my life. There’s no place I’d rather be.”

ShelleyDEFEATING ADDICTIONGROWING THROUGH SUPPORT

“I never had to

hide my past,

and to have

that support

at a place of

employment is

invaluable.”

8 | GROWING GOOD | 2013 Annual Report

Watch Ian’s Story

GROWING GOOD | 2013 Annual Report | 9

An accident at age three left Ian with permanent brain damage — damage that would later make it difficult for him to find work. “No one would take a chance on me,” said Ian.

Ian had been on the job hunt for six years, and he started to get discouraged. “I was at a bad point in my life, and I was trying to figure out where I was going and what I was going to do.”

That all changed in 2007 when the then 22-year-old landed his first job as the greeter for the Goodwill store in Lexington. “My job is to make sure everyone feels welcome when they walk into the store.”

Over the years, Ian has shown he can do much more than that. In addition to his greeter responsibilities, he is also in charge

of keeping the books organized, and he plays a vital role in the weekly color rotation of merchandise. “I’ve proven I’m a hard worker,” he said. “You give me any task, and I will do it to the best of my ability.”

Ian says working at Goodwill has changed his life. “It gives me a feeling of accomplishment and integrity, and I like being part of a team.”

Goodwill was Ian’s first job, and he hopes it’s his last. “I love my job. I would do it for free.”

IanOVERCOMING DISCOURAGEMENTGROWING IN CONFIDENCE

“I’ve proven I’m

a hard worker,”

he said. “You

give me any

task, and I will

do it to the best

of my ability.”

10 | GROWING GOOD | 2013 Annual Report

2013PEOPLE SERVED

2012 2013 MISSION SERVICES

CLIENTS SERVED BY BARRIERS TO EMPLOYMENT

Duplicates exist due to some clients reporting more than one barrier

PEOPLE PLACED IN JOBS

2013

20

12

116,845138,406

75,75283,036

55,69754,660

12,57125,380

7,38518,980

16,15917,498

5,66916,32216,15915,919

7,8529,316

Skills class attendance (Days)

Job readiness training (Days)

Career assessments

Work skills training (Days)

Goodwill on the job training (Days)

People served

Job fair / job center services

Referrals

Job placement help

Unemployed dislocated worker

Autism

Blindness or other visual impairment

Deafness or other hearing impairment

Developmental disability

History of substance abuse

Learning disability

Neurological disability

Other physical disability

Other disabling conditions

Psychiatric and/or emotional disability

At-risk youth

Ex-offenders

Homeless

Lack of literacy

Lack of GED/ high school equivalency

Non-English speaking/English as a second language

Older worker

Other disadvantages

Welfare recipient

Working poor/ Incumbent worker/underemployed

175148

1,181412545

57

95

1,355

264

1,111

2336,3172,275

3882,748

243

8256,365

2,155

280

15,901

3,1545,615

GROWING GOOD | 2013 Annual Report | 11

52.5 47.5%

White 8,758 Black/African American 7,436 Other Race (includes multi-racial) 763 People of Hispanic Origin (Duplicate) 533 Unknown/Unreported 250 Asian/Pacific Islander 186 American Indian/Eskimo/Aleut/Native American 105

TOTAL 17,498

PEOPLE SERVED BY GENDER

PEOPLE SERVED BY RACE

PEOPLE SERVED BY AGE

15 and under 64 16-24 2,046 25-34 5,122 35-44 3,642 45-54 3,862 55 and over 2,762

TOTAL 17,498

0.4%

22.1%

20.8%

29.3%

11.7%15.7%

Female 8,305 Male 9,193

TOTAL 17,498

41.246.8%

4.2%3.0%

1.4%1.0%

0.6%

12 | GROWING GOOD | 2013 Annual Report

2013FINANCIAL SUMMARY

Sales of goods contributed by the community $72,493,447.00

Fees & grants for professional rehabilitation services $509,849.00

United Way support and other contributions $257,186.00

Investment Income $146,079.00

Market value increase (decrease) of investments $209,903.00

Other $184,925.00

$73,801,389.00

Sales Program $53,847,334.00

Career Solutions (Mission Services) $7,654,948.00

General and Administrative $6,709,810.00

Fundraising $733,842.00

$68,945,934.00

Resources for future investment in the community $4,855,455.00

THE COMMUNITY GAVE TO GOODWILL (REVENUES)

GOODWILL GAVE BACK TO THE COMMUNITY (EXPENSES)

NET REVENUES

98.23%

0.69%

0.35%

0.20%

0.28%

0.25%

78.1%

11.1%

9.73%

1.06%

GROWING GOOD | 2013 Annual Report | 13

2013IMPORTANT FACTS

34 Stores, 25 Career Solution centers and 80 Donation Express Centers, in 48 counties, throughout Middle and West Tennessee.

HIRED employers are actively hiring Goodwill clients.1,300

of Career Solutions clients who found work were placed in jobs outside of Goodwill.83%

of Goodwill employees are mission related. 90%

$ employees and clients were on payroll as of January 1, 2014.2,283

pounds of salvage and recyclable material was diverted from landfills.25,798,126

donors dropped off items at our Donation Express Centers, on average, each day.4,023

worth of gift cards were given away to other nonprofits through our Goodwill Cares Program to assist those in need.$20,789

CAREER SOLUTIONS

clients were served and were placed in jobs.5,61517,498

$ 8th highest retail sales of the 165 Goodwills worldwide.

14 | GROWING GOOD | 2013 Annual Report

2013 BOARD OF DIRECTORSOFFICERS

DIRECTORS

TRUSTEES

Chairperson Donna B. Yurdin PresidentCredo Management Consulting

Vice Chairman Fred T. McLaughlinSr. Vice President InvestmentsRobert W. Baird & Co., Inc.

Secretary Julie F. WilsonSr. Vice PresidentHealthcare Realty Trust

Treasurer Dave M. FentressVice President – Internal AuditDollar General Corporation

Legal Counsel Christopher S. Dunn andWaller Lansden Dortch & Davis, LLP Attorneys Matthew S. BourlakasPresident and CEOGoodwill Industries of Middle Tennessee, Inc.

Tammy B. GlassVice President & Chief Operating OfficerGoodwill Industries of Middle Tennessee, Inc.

Betty J. JohnsonVice President & Chief People OfficerGoodwill Industries of Middle Tennessee, Inc.

Woodretta AllenCost Containment ManagerUnited Parcel Service

J. B. Baker Chief Executive OfficerSprint Logistics, LLC

Bryan L. Bean **First Vice PresidentSunTrust Bank

Steele Clayton PartnerBass, Berry & Sims, PLC

David L. CondraChief Executive OfficerAmplion Clinical Communications

Gary W. CordellSAVIN Program CoordinatorTennessee Sheriffs’ Association

Andrew DavidsonAccount ExecutiveFrank E. Neal & Co., Inc.

Robert W. DuthieCEO/FounderDuthie Associates, dba Duthie Learning

Dave M. FentressVice President – Internal AuditDollar General Corporation, Inc.

James B. FoleyAssociateCB Richard Ellis

Kathryn S. GibsonAssistant DirectorVUMC Finance

Chad M. GroutPrincipal BrokerUrban Grout Commercial Real Estate

Jeffrey A. Hoffman *Richelieu America, Ltd.

Philip G. HullChief Financial OfficerCommunity Education Partners

Decosta E. JenkinsPresident and CEONashville Electric Service

R. Craig LaineSenior Vice PresidentCB Richard Ellis

Ryan R. LoydVP - Deputy Chief Accounting OfficerCigna-Health Spring

Robert McNeilly, IIIPresident & CEOSunTrust Bank – Nashville

Ty H. OsmanPresidentSolomon Builders

Christine E. SkoldVice President, Investor Relations,Strategy & Continuous ImprovementTractor Supply Company

Todd A. SpaanstraCPA/PartnerCrowe Horwath, LLP

John W. Stone, III *PartnerWhite & Reasor, PLC

Kathryn I. ThompsonPartner, CEOThompson Research Group (TRG)

John C. Tishler *ChairmanWaller Lansden Dortch & Davis, LLP

John Van MolChairman DVL Public Relations and Advertising

Jeff Young **Vice PresidentTennessee Bank & Trust

*Ex Officio | **Intern

Robert W. DuthieCEO/FounderDuthie Associates, dba Duthie Learning

Fred T. McLaughlin, Trustee ChairSr. Vice President InvestmentsRobert W. Baird & Co. Inc.

Robert B. KennedyAccount ExecutiveThe Crichton Group

GROWING GOOD | 2013 Annual Report | 15

Career assessments: Counselors help clients determine skills and

aptitudes they have for successful employment.

Career Solutions: Provides assessments, job readiness training,

and one-on-one counseling to anyone who

needs help finding a job.

Goodwill on-the-job training: Goodwill counselors and staff teach clients to

perform basic job-related tasks while the client

earns a paycheck.

Job placement help: Counselors help clients find work at Goodwill or

other community-based employers.

Job readiness training: Instructors teach clients skills, including how to fill

out an application, and give job interview tips.

Retention services: Counselors provide support to clients after the

clients are hired.

GLOSSARY OF TERMS

Mike EisenbraunSr. Director of Production Goodwill Industries of Middle Tennessee, Inc.

Matt GlosterSr. Director of Career Solutions Goodwill Industries of Middle Tennessee, Inc.

Karl Houston Sr. Director of Marketing and Community Relations Goodwill Industries of Middle Tennessee, Inc.

David JenkinsSr. Director of RetailGoodwill Industries of Middle Tennessee, Inc.

Mary LaHaieSr. Director of AccountingGoodwill Industries of Middle Tennessee, Inc.

Ed O’KelleySr. Director of IT Goodwill Industries of Middle Tennessee, Inc

Mike SpraggeSr. Director of HR Goodwill Industries of Middle Tennessee, Inc.

SENIOR MANAGEMENT

1015 Herman Street, Nashville, Tennessee 37208 www.giveit2goodwill.orgP: 615.742.4151

F: 615.254.3901

Goodwill Industries of Middle Tennessee, Inc.

Our business is changing lives.

GROWING FORWARDAs we look ahead to 2014, our goal

is to serve 20,000 people and place

6,000 people in jobs. We want to

thank all our supporters, donors and

employees, who through their tireless

efforts, are helping us impact more

lives each day. As Goodwill continues

to grow, so too will our mission of

serving people with disabilities and

helping those who have trouble

finding work get the employment and

training opportunities they need; and

that can only lead to more good

permeating our world.