transitions

2 0 1 0 A N N U A L R E P O R T

2

I N M E M O R I A M

William Donald Schaefer

Goodwill Board of Directors Member 1996 to 2002

Made a Life Member in 2002

Thank You. He Cared.

3

14

Marge ThomasPresident and CEO

Message from the President

Dear Friends, Colleagues, and Supporters

It is truly with mixed emotions that I write this letter to all of you. When my current contract expires in December 2011, I plan to retire.

I have worked for Goodwill since 1974 when I started as a secretary in human resources.Now after 36 years spent serving five different Goodwills, I am preparing to live a moreleisurely life and plan to retire. Each of the Goodwills I have happily called “my Goodwill”(Milwaukee, Hagerstown, Lancaster, Mobile and now Baltimore) have given me opportuni-ties to learn and grow. Hopefully I have brought to each my values and a piece of my heart.

Formerly the Baltimore Goodwill, now Goodwill Industries of the Chesapeake, has beenthe place I have stayed the longest. Last November, I celebrated 16 years of serving as yourpresident. During those years together we have achieved tremendous results…decentralizingmost of our operations, moving from Arbutus to downtown, increasing the people servedfrom a few hundred to thousands each year, growing our budget from $8 million to $40 mil-lion, and focusing on both hiring more employees and making GIC a better place to work.

When you are happy in your job as I have been blessed to be for 36 years, it is difficult tosay “enough!” But the there is also such a thing as staying too long, retiring on the job, losingfocus or losing vision for a great future. I have known people who did this. I will not beone of them! So with a heavy heart I close this chapter on my life but look forward to whatthe future will bring for me and for all of you.

I leave secure in the knowledge that our Goodwill is perfectly positioned to transition intothe next phase of serving the community. In my tenure as President and CEO, I haveworked to be able to respond to the changing needs of the community, to serve more people every year, and to serve them better. As such I leave knowing that our staff has neverstronger or more qualified to help, those seeking employment transition into the workforce.Our Stores have never been in a stronger financial position and our brand is recognized andrespected across the board.

I will leave a strong Goodwill and I know it will continue to grow and build on the foundationset by our founder Edgar Helms in 1902: “Friends of Goodwill, be dissatisfied with yourwork until every handicapped and unfortunate person in the community has an opportunityto develop to his fullest usefulness and enjoy a maximum of abundant living.”

Thank You!

Sincerely,

Marge ThomasPresident and CEO

4

Frances O’Connell TaylorBoard Chair

Message from the Board Chair

Dear Goodwill Board Members, Employees and Supporters,

I have had the pleasure of being Board Chair for a second year, associated with an agencythat has weathered the financial crisis without layoffs, cutbacks, or elimination of programsand services. In fact, despite the recession, Goodwill Industries of the Chesapeake has continued to grow, prosper, and help residents of Central Maryland and the Eastern Shoreto gain much-needed employment.

In 2010, Goodwill served more people than ever in our 91 year history. We also increasedthe number of our retail stores to 25 and donation centers to 37. We now employ 495 individuals, a record number.

Goodwill’s continued success means that we are better able to provide more employmentand training services to people in need. By helping more people to become gainfully employed, we are also minimizing government spending by decreasing the number of people who receive government assistance.

In 2010, Goodwill helped 2,141 people to gain employment. On an annualized basis, thetotal earnings of these newly employed people are in excess of $20 million. These earningsare estimated to have generated revenues of over $10 million for the State of Maryland,alone.

Although Marge Thomas, our President and CEO, is retiring at the end of 2011, we areconfident we will continue to build on the foundation she created and fostered. As a company, we will remain devoted to helping people to become employed, regardless oftheir barriers. We will continue our commitment to being an employer of choice forGoodwill employees and will strive to add benefits and resources that help all of our employees achieve a better quality of life for themselves and their families.

As we look ahead to 2011 and beyond, we pledge to take all necessary steps to keep ourGoodwill programmatically and fiscally strong, despite the economic landscape that threatensall nonprofits and retailers. We are confident that, with your help and the continued dedicated service of our employees and staff, we will weather the economic downturn and continue to fulfill our mission of preparing the people we serve to secure and retainemployment and build successful independent lives.

We deeply appreciate your continued support and concern for our work and the people weserve. As we celebrate the accomplishments of 2010, we look forward to continuing ourgrowth and success in 2011 and beyond.

Frances O’Connell TaylorBoard Chair

5

oodwill remained strong in 2010 despite the economic hardships that

plagued most businesses across the country. Goodwill added 17 new

positions and maintained its workforce of 495 employees. Additionally, despite

double-digit unemployment rates, Goodwill helped 17,189 individuals to prepare for

employment and assisted 2,141 individuals to go to work. Over 25,600 services were

provided, including assessment, job preparation and skills training, and individualized

case management. Additionally, 3,300 individuals were served at the 54th Annual

Goodwill Thanksgiving Dinner and Family Strengthening Services Fair.

Goodwill’s workforce services were enriched to include introductory computer skills

training for participants in all programs. This training includes instruction on

applying for jobs online, creating and maintaining an email account, maintaining

updated resumes using Microsoft Word, and how to use the Internet to search for

jobs online. More than 100 individuals completed this basic training by the end of 2010.

GGoodwill Industries

of the Chesapeake

provided services for

17,189 individuals

and placed

2,141 individuals

into jobs in 2010.

6

7

In 2010 Goodwill Industries of the Chesapeake, Inc. part-

nered with Art with a Heart to create and implement a Youth

Retail Training Program. The program is comprised of high

school graduates with a strong desire to enter the retail

industry. Classes are held twice a week, during which time

participants engage in a variety of art projects including

using water paints, molding clay, wire, and a variety of other

art materials. Some of the projects are individual projects

and some are group projects. Participants in each cohort

participate in at least one team project where they are

responsible for creating a product to sell and developing a

marketing strategy. On days the students are not in class,

they participate in hands-on retail training giving them a

comprehensive education on the various business aspects

of managing a retail store.

This partnership has helped participants to identify the

creative skills that they did not know they had and

enhanced the skills that they brought with them into the

program. The projects also encourage team building, team

work, and management skills. Not to mention, it can be

very therapeutic for the participants.

oodwill expanded its partnership with the Baltimore City Community

College by offering free pre-GED and GED literacy classes for Goodwill

participants enrolled in career preparation programs at the Redwood Street Career

Center and the Waverly Family Support Center. Nearly 40 individuals participated

in the education programs and, as a result, 8 were awarded their GEDS and 8 made

enough academic progress to sit for the GED examination in early 2011. The remainder

continue their classwork.

Goodwill’s STEP and Waverly Family Support Center programs made encouraging

progress in 2010. STEP enjoyed its most successful year since becoming a division of

Goodwill in 2005 by helping 145 individuals with mental illness prepare for

employment. 94 people obtained jobs.

The Waverly Family Support Center served 153 families at the center and on an

in-home intensive service basis. Two parents, who also obtained their GEDs while at

Waverly, began working on their college degrees. Twenty parents gained employment,

a record for the Center.

GGoodwill’s STEP

and Waverly Family

Support Center

programs made

encouraging

progress in 2010.

8

PROFILE ON MARGARET

Margaret was 55 years old when she left Central America

and moved to Maryland. When she arrived her English

was minimal and she felt marginalized and isolated due

to the language and cultural differences she faced. She

was directed to Goodwill Industries of the Chesapeake,

Inc., specifically to the case manager specifically hired to

help Latino immigrants find employment. After one-on-

one English language tutorials, Margaret was able to start

interviewing for job opportunities and it was not long until

she found full time employment at a Goodwill store.

9

GGoodwill’s retail

division had a

successful and

prosperous year

and achieved more

than $23 million

in total sales.

oodwill’s retail operations, which provide a source of consistent funding

for Goodwill’s workforce development services, also became a viable

employment source for program graduates needing work experience before seeking

permanent employment. This “transitional” work experience helps those with no or

limited work experience become acclimated to the rigors of full time, regular employ-

ment. Goodwill stores and its Recycling Center provided 104 graduates with mean-

ingful work at 18 sites in 2010; more than half were hired to fill permanent positions

within Goodwill.

Goodwill’s retail division had a successful and prosperous year and achieved more than $23

million in total sales. Goodwill opened a new retail store in Churchville, a new outlet center

at the Recycling Center in Linthicum, and relocated its Fells Point Store to a larger location.

A record number of shoppers, more than1.6 million, made purchases last year. Ten stores

achieved million dollars plus in sales revenues – Annapolis, Salisbury, Owings Mills, Bel Air,

Perry Hall, Jumpers Junction, Snowden River, Padonia, Elkton, and Millersville – all which

help Goodwill programs thrive.

In 2010 Goodwill received donations from 844,958 contributors at retail stores

and donation centers throughout Central Maryland and the Eastern Shore. In addi-

tion, Goodwill collected clothing and shoes from its 40 free-standing donation boxes,

adding an estimated 13,750 additional contributors.

10

PROFILE ON MARK

Mark came to Goodwill eager to find work and a way to

take care of his wife and young daughter but he also came

with an eviction notice in hand and no work experience.

Mark also feared his pending eviction (and homelessness)

would lead to his wife leaving him and taking his daughter

from him and out of state. Mark’s case manager knew he

needed to find stable housing for his family. So she helped

him navigate the waters of finding housing. Once Mark

knew his family was safe, he worked diligently and tire-

lessly to find stable employment. Mark is now currently

employed in Goodwill’s janitorial contracts division where

he is a valued employee, in addition to being an amazing

father and husband.

11

Goodwill provided training in the custodial field to 160 individuals with

significant disabilities at various federal sites such as the Social Security

Administration, the Ft. Meade Army Post, and the Environmental Protection Agency.

In 2010, AbilityOne, the national organization that oversees federal set-aside contracts

for people with severe disabilities, recognized Goodwill for outstanding performance

in 2010 for the 22nd consecutive year.

Goodwill’s outstanding AbilityOne performance resulted in a new custodial contract

at the Child Care Center located at the Social Security Administration Complex. This

contract allowed us to provide training opportunities for nine additional people with

severe disabilities.

This is the

22nd year in a row

that Goodwill’s

janitorial contracts

division at the

Social Security

Administration

has maintained a

perfect record for

outstanding quality

and performance.

12

PROFILE ON PAUL

Paul is a smart and affable young man with a degree

in Political Science and at one time an acceptance

into law school. It was after completing his first year

in law school that Paul began to feel very over-

whelmed and decided to take a year off. What Paul

did not realize at the time is he was experiencing the

first signs of manic depression. What resulted for

Paul was a life spent in and out of institutions and

over 12 years without a job or source of income. But

today Paul’s life is dramatically different than it once

was. He is employed at a Goodwill contract site and

is a remarkable man whose success is an inspiration

to us all.

13

oodwill is indeed one of the oldest recyclers in the Baltimore metropol-

itan region since its inception in 1919. Even so, it continues its efforts

to “Go Greener.” In 2010, nine critical sustainability factors were identified and will

be used to measure Goodwill’s current environmental impact, including energy usage

and solid waste production. This 3 year project will set sustainability goals that when

achieved can provide cost savings, generate revenue, and create jobs.

In February of 2010, Goodwill launched Reconnect, a pilot program in partnership

with Dell to provide free collection and recycling of computers that would otherwise

clog our landfills. In all, Goodwill recycled over 690,000 pounds of computers and

accessories. The Reconnect program also provides 8-12 week transitional work pro-

grams for individuals with limited workforce experience. While gaining valuable paid

work experience, participants sort and prepare materials for shipment to DELL and

learn to use specialized computer software. In 2010, eleven individuals completed the

Reconnect computer recycling program, six of whom went on to obtain successful

permanent employment while the remainder are actively seeking employment.

Goodwill recycles more than just computers. From metal and plastic, from cardboard

to wire, Goodwill recycled over 16,500,000 pounds of material that would have

otherwise ended up in landfills. Focused on reusing, repurposing, and recycling, Good-

will is finding the useful life in everything that is donated to us.

G

14

Goodwill recycles more

than just computers.

From metal and plastic,

from cardboard to wire,

Goodwill recycled over

16,500,000 pounds of

material that would have

otherwise ended up in the

landfill. Focused on

reusing, repurposing, and

recycling, Goodwill is

finding the useful life in

everything that is

donated to us.

15

PROFILE ON CYNDI

Over the past seven years Cyndi had traveled from Florida to

Maryland to care for her dying father while he battled cancer. After

her fathers passing Cyndi decided it would be better to perma-

nently relocate to Maryland so she could attend to her mother.

What Cyndi found when she arrived in Maryland was a shock to

her, her mother was showing early signs of Alzheimer’s disease.

Cyndi was overwhelmed, unemployed, and isolated from her net-

work of friends and business associates (in Florida). Cyndi came

to Goodwill because she didn’t know where else to go but she

soon enrolled in the Clerical and Computer program and excelled.

She was eager and attentive in class, always willing to help other

students, and she soon mastered the classroom curriculum. Her

bubbly personality and enthusiasm coupled with her newly

acquired computer skills made it fairly easy to find Cyndi perma-

nent employment with a company that provides full benefits and

has helped her find permanent care for her mother.

ore than just a retail store or

charity, Goodwill Industries of the Chesapeake,

Inc. is a leader in the community and a testament

that just and fair business practices lead to a

strong financial portfolio and employee base,

and overall success.

M

16

OUR MISSION:

Goodwill Industries of the

Chesapeake, Inc. prepares people to

secure and retain employment and

build successful independent lives.

Operating Revenue

Operating Expenses

Workforce Development Services $3,173,508

Public Support 1,067,574

Sale of Donated Goods 26,479,815

Contracted Services 11,339,524

Other 39,811

Sub-Total 42,100,232

Quasi-Endowment Fund Gain 1,269,508

Total $43,369,740

Sale of Donated Goods 62%

Contracted Services 27%

Workforce DevelopmentServices 8%

Public Support 3%

Payroll & Related Expenses 67%

Housing & Occupancy 17%

Supplies & Materials 9%

Other Operating Expenses 7%

Workforce Development Services $5,612,661

Commercial & Custodial Training & Employment 9,026,137

Retail Employment Training & Services 19,544,151

Dues for National Services 151,812

Providing Community Information & Services 577,224

Administering Goodwill Programs 2,984,654

Depreciation 924,960

Reserves for Program Expansion and Capital Expenditures 4,548,141

TOTAL $43,369,740

2010 Financial Report

17

2010 Board of Directors

OFFICERS

ChairmanFrances Taylor(Taylor & Ryan LLC)

Vice ChairDean Kenderdine(Maryland State RetirementAgency)

Immediate Past ChairGary Geisel

SecretaryJoan Corcoran(Attorney, Community Volunteer)

TreasurerThomas Finney(U.S. Trust)

President and CEOMarge Thomas(Goodwill Industriesof the Chesapeake, Inc.)

BOARD OF DIRECTORS

Robert Aumiller(Mackenzie Commercial Real Estate)

Joy Bramble(The Baltimore Times)

Kevin Byrne(The Baltimore Ravens)

David Downey, Jr(Cassidy Turley)

Dennis Finnegan(1st Mariner Bank)

David Fowler, MD(Maryland Department of Health and Mental Hygiene)

Herbert Goldman(Gordon, Feinblatt, Rothman,Hoffberger, & Hollander, LLC)

Kenneth Grant(Johns Hopkins Hospital)

Andre Johnson(Key Solutions, LLC)

Robert Kimmons(The Whiting - Turner ContractingCompany)

David Labuskes(RTKL Associates Inc.)

Andrew Levy(Brown, Goldstein, and Levy LLP)

Robert McKay Jr.(Constellation Energy Group)

Lisa Michocki

Jayne Miller(WBAL-TV)

Kathleen Snyder(Maryland Chamber of Commerce)

Bonnie Stein(PNC)

Joyce Van Dee Esq.(Joyce Rogers Van Dee, Esq.)

Kim Weaver(McCormick & Company)

Rosetta Kerr Wilson

CHAIRMAN’S ADVISORY COUNCIL

Kevin AbellRoberto AllenDallas ArthurMark BarkerAllen “Mac” BarrettPaul BeattyJoy BrambleThomas BurdenWilliam CegliaJames ColeM. Jenkins CromwellMartin E. DannenbergGwen Davidson

Ronald FradkinCarolyn McGuire-FrenkilJames Frenkil, MDC. Gordon HainesAndrew HidukeGail LettsBruce McLeanDavid MeeseAlvin MillerWilliam MinkinOsborne PayneHenry PearJames Piper IIIWayne ResnickFrederica SaxonMalinda SmallJanet TolbertBetty Waghelstein

PRESIDENT’S ADVISORY COUNCIL

Peter ChesnerSean DaviesLillian KilroyRon MelikerBill TamulonisDarrell VanDeusenPhyllis Wilkins

LIFE MEMBERS

Henry H. MillerThomas O. NuttleGeorge M. RadcliffeBrooks Robinson

GENESIS JOBS INC ADVISORY

F. Scott CoreyMohammad JishuFrank KimmelBishop Douglas Miles

LEADERSHIP TEAM

Marge ThomasPresident and Chief Executive Officer

Lisa RusyniakSenior Vice President and Chief Operating Officer

Gerald GrassoSenior Vice President, Administra-tion, Chief Financial Officer

Doug HiobSenior Vice President, Retail Operations

Philip HolmesVice President, Public Policy & Program Development

Amy NewmanVice President, Human Resources

Karen PearsonVice President, Workforce Development

Holly BangayDirector, Financial Services

Catharine FlemingDirector, Business Development

Michael JacobsProject Manager, Commercial Services

Jeffrey StengelDirector, Operations

Ursula VillarDirector, Marketing and Development

Melvin WilsonStaff Development Coordinator

Everett HawkinsAssistant to the President

18

Goodwill in the Community

HEADQUARTERS

222 East Redwood StreetBaltimore, MD 21202410-837-1800

GOODWILL STAFFING SERVICES

222 East Redwood StreetBaltimore, MD 21202410-837-1800

VEHICLE DONATIONS

410-837-1800

RETAIL STORES

Aberdeen2 Aberdeen PlazaAberdeen, MD 21001410-297-9136

Annapolis1605 West StreetAnnapolis, MD 21401410-269-1302

Bel Air711 A Belair RoadBelair, MD 21014410-879-8001

Belvedere5620 The AlamedaBaltimore, MD 21239410-323-6638

Carroll Island140 Carroll Island Road Middle River410-344-1032

Churchville2225A Churchville RoadChurchville, MD 21015410-734-0612

Columbia East7351 Assateague DriveJessup, MD 20794443-755-1486

Easton134 North Washington StreetEaston, MD 21601410-770-4458

Eastpoint7928 Eastern Blvd. Baltimore, MD 21224410-282-8750

Elkton208 South Bridge StreetElkton, MD 21921410-620-1281

Fells Point715 S. Broadway Street Baltimore, MD 21231410-327-2211

Frankford5201 Belair RoadBaltimore, MD 21216410-325-1940

Jumpers Junction8124 Ritchie HighwayPasadena, MD 21122410-384-7235

Millersville874 Old Mill RoadMillersville, MD 21108410-987-9740

Owings Mills11411 Reisterstown RoadOwings Mills, MD 21117410-581-8960

Padonia200 W. Padonia RoadTimonium, MD 21093410-666-7929

Perry Hall8818 Belair RoadBaltimore, MD 21236410-248-0070

Pikesville6999 Reisterstown RoadBaltimore, MD 21215410-358-8411

Poppleton Store1 N. Poppleton StBaltimore, MD 21201410-244-6210

Salisbury700 S. Salisbury RoadSalisbury, MD 21801410-219-9072

Security Station1700 N. Rolling RoadBaltimore, MD 21244410-448-9368

Snowden9097 Snowden River Pkwy.Columbia, MD 21046410-872-0134

Southside859-865 E. Fort AvenueBaltimore, MD 21230410-783-2995

Towson1753 East Joppa RoadBetween Loch Raven& Perring Parkway410-663-2192

Waverly3101 Green Mount AvenueBaltimore, MD 21218410-467-7505

CAREER CENTER LOCATIONS

Fort Meade195 Saxton RoadFt. Meade, MD 20755410-799-9423

GenesisJobs2211 Maryland Avenue Baltimore, MD 21218410-323-9400

Headquarters/Main Career Center222 East Redwood StreetBaltimore, MD 21202410-837-1800

Lower Shore Career Center700 South Salisbury Blvd.Salisbury, MD 21801410-219-9216

STEP2211 Maryland Avenue Baltimore, MD 21218410-625-1877

STEP263 East Main StreetWestminster, MD 21157410-875-3368

STEPP.O. Box 2920Easton, MD 21601410-820-9853

Social Security AdministrationWoodlawn Branch6401 Security Blvd.Baltimore, MD 21235410-265-7085

State Office Complex201 & 301 W. Preston StreetBaltimore, MD 21201410-767-1899

The Waverly Family Center829 Montpelier StreetBaltimore, MD 21218410-235-0555

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Goodwill Industries of the Chesapeake, Inc.222 East Redwood StreetBaltimore, MD 21202

410.837.1800 www.goodwillches.org

ANNUAL REPORT 2010GOODWILL INDUSTRIES OF THE CHESAPEAKE, INC.

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