InstantMobile Solutions, Inc.

White Paper and Market Research

Report for Goodwill Industries

March 14, 2012

Rev 1.2

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Contents

Exec Summary ................................................................................................................................ 3

Donation App and Service – Concept & Purpose ............................................................. 5

Donor Survey Results .................................................................................................................. 6

Survey Methodology ................................................................................................................ 6

Summary of Key Results ........................................................................................................ 6

Observation – Age Groups .................................................................................................... 7

Observation – Reasons to Donate ...................................................................................... 8

Observation – When to Donate ........................................................................................... 8

Observation – Donation Frequency .................................................................................. 9

Observation – Value of Donation Service and App ..................................................... 9

Conclusion ................................................................................................................................ 10

Key Adoption Metrics ............................................................................................................... 11

Conclusion ................................................................................................................................ 13

How the App and Service Work ........................................................................................... 14

Overview – Insta-Pass Donation Service ..................................................................... 14

Donor’s Benefits ..................................................................................................................... 14

Charity’s Benefits ................................................................................................................... 15

How the Donation System Works ................................................................................... 15

Donation App ........................................................................................................................... 16

Donation Files ......................................................................................................................... 16

Catalog – Entering Donations into a Donation File ................................................. 16

Architecture ................................................................................................................................. 20

Future Functionality ................................................................................................................. 22

Donor/Shopper Facing ........................................................................................................ 22

Goodwill Facing ...................................................................................................................... 23

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Exec Summary

The purpose of this document is to summarize the key findings in a survey of Goodwill’s donors who have downloaded and registered for the Insta-Pass Donation App and Service. The survey was conducted during the first week of March 2012. To provide a comprehensive view of donor’s desire for this type of App and Service, there are detailed metrics on downloads, registrations and submitted donation files. In addition, there is information on current and future features and functionality of the Insta-Pass Donation App and Service.

The Insta-Pass Donation App and Service is the first of its kind. Insta-Pass “digitizing the donation process” thus eliminating the need for paper receipts. Systems surrounding the donation process are all digitized except for donor’s activities. For example, Retail Management Systems manage inventory, financial software manages internal finances and tax software prepare and file individual’s taxes. Yet, nothing exists to document in-kind donations for either Goodwill or its donors. The Insta-Pass Donation App and Service solve that problem and in doing so also solves Goodwill’s number one problem. Goodwill is now able to identify their donors and communicate with them.

Summary of Survey Key Results

Demographics - over 70% of donors are married, between the ages of 26 and 56 and donate between 1 to 6 times per year.

The primary motivations for donating to Goodwill are:

1. Support Goodwill's mission

2. To reduce clutter in the house

The three reasons why donors downloaded the Donation App are:

1. Identifying donation locations

2. Digital receipt (eliminate the need for a paper receipt)

3. Download donation data when filing taxes

“I was very impressed that Goodwill had

such a state of the art locator app for mobile devices. I have showed it off to

several friends.”

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It is clear from the survey's results that the Donation App and Service provide the information and functionality that donor's want and use. The ability to locate Goodwill locations with their mobile devices speaks to the global trend of the Internet becoming mobile. Furthermore, the ability to digitize the donation process enables donors to receive value-added services for which they are willing to provide Goodwill with their contact information.

Summary of Key Metrics

The strength of the Goodwill and Apple brands are exemplified by the consistent traction that the App has enjoyed. In five months, the Donation App and Service have amassed the following metrics.

Total App Downloads – 2,016 Average Daily Downloads – 11

Total Registered Donors – 1,151 Ave. Daily Registered Donors – 7

Submitted Donation Files – 535

Downloads – 25 countries

Registered Donors – 47 states and Puerto Rice

The consistent (week over week) number of downloads and corresponding registrations indicates that donors want a nationwide Goodwill Donation App and Service. In addition, the number of donation files submitted (535), even though only 161 donors are in Silicon Valley where donations can be confirmed, indicates that donors are using the Donation App and Service.

Conclusion

Insta-Pass Donation App and Service provides the functionality that donors want and captures the information that Goodwill needs. Though the App and Service are the first version, it proves it has the ability to address the market requirements. Downloads, registrations and donation file creation all show the type of traction that validates the design and strategy.

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Donation App and Service – Concept & Purpose

The Insta-Pass Donation Service addresses challenges faced by donors who contribute and charities which accept in-kind donations. Today donors compile lists of donated items and keep stacks of receipts. Goodwill has lacked a compelling reason for donor’s to provide their contact information and have little or no insight into their greatest asset, their donor’s loyalty. The patent pending Insta-Pass Donation App and Service solves these problems for donors and their Goodwill.

The Insta-Pass Donation App and Service provides compelling reasons for donors to share their information and to donate more. Goodwill learns who their donors are, what they donate and can help influence donor behavior by communicating directly with them. Furthermore, in this era of “transparency”, the more Goodwill communicates and interacts [not just asking for money or in-kind donations] with its donors, the more engaged and appreciated the donor feels and responds accordingly.

Goodwill generates the majority of its revenue from the sale of donated items. The Insta-Pass Donation App and Service is designed to provide a value-add to the donor so that the donation process from beginning to end is seamless, easy and digital. The donation process is more than collecting and dropping off unwanted items. It includes identifying the donation location, maintaining donation records for tax purposes and downloading donation files at tax time. Most importantly, for the donor it is about knowing and supporting their charity of choice – Goodwill Industries International.

“The App added a lot of information and

makes it convenient to keep track of my

donations and support Goodwill.”

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Donor Survey Results

InstantMobile Solutions undertook a survey to identify and understand the motivations behind the use of the Donation App and Service implemented with Goodwill of Silicon Valley. Detailed in the graphics are demographic and behavioral data about Goodwill's donors and their use of the Donation App and Service.

Survey Methodology

An email was sent to the 1,050 registered donors. Approximately 975 donor email addresses were validated and approximately 380 emails were opened. 70 donors responded to the survey and 12 provided comments a subset of which are included in the section headers.

Summary of Key Results

Demographics - over 70% of donors are married, between the ages of 26 and 56 and donate between 1 to 6 times per year.

The primary motivations for donating to Goodwill are:

1. Support Goodwill's mission

2. To reduce clutter in the house

The three reasons why donors downloaded the Donation App are:

1. Identifying donation locations

2. Digital receipt (eliminate the need for a paper receipt)

3. Download donation data when filing taxes

It is clear from the survey's results that the Donation App and Service provide the information and functionality that donor's need and want. The ability to locate Goodwill locations with their mobile devices speaks to the global trend

“I wanted value calculator to help clients

when doing their taxes. I work for H&R

Block during tax season”

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of the Internet becoming mobile. Furthermore, the ability to digitize the donation process enables donors to finally receive the value added services for which they are willing to provide Goodwill with their contact information.

Observation – Age Groups

The even distribution of age group data spans the key donation age ranges and shows the homogenous adoption of the App. This dispels the belief that “under 25’s” are the primary users of mobile technologies.

For Goodwill, this highlights the critical need for a nationwide Donation App and Service to quickly address their most valued donors.

“Need a goodwill locator app that

would tell you where all goodwill stores are. I like to thrift shop

when I travel.”

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Observation – Reasons to Donate

Donors were asked to rank on a scale of 1 to 4 the importance of the key drivers of why they donate to Goodwill. Mission is clearly the most important.

Observation – When to Donate

The respondents overwhelmingly selected the “need to reduce clutter…” as the primary motivator to donate. However, the balance of other answers indicates there are multiple motivators and that they can each help to influence the timing of a donation and even the charity of choice.

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Observation – Donation Frequency

Donation frequency supports question #4’s multiple reasons to donate.

Observation – Value of Donation Service and App

The top ranking of Location, Digital Receipts and Downloading for Tax Purposes indicates the value donors attribute to the “digitization of the donation process”. From identifying the donation site to filing taxes, the Donation App and Service provides a significant value for Goodwill’s donors.

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Conclusion

Donors are seeking ways to engage with Goodwill. The Donation App and Service provide them with the features and functionality they want and need. The Insta-Pass Donation App and Service is architected for and can support a nationwide implementation for Goodwill International and the 165 agencies it supports.

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Key Adoption Metrics

The Goodwill Donation App and Service is available on the iTunes App Store. The Service is also available for registration through the Goodwill of Silicon Valley website.

The strength of the Goodwill and Apple brands are exemplified by the consistent traction that the App has enjoyed. Starting on October 12, 2011 through March 14, 2012*, adoption and usage of the Donation App and Service is represented by the following metrics.

Total App Downloads – 2,016 Average Daily Downloads – 11

Total Registered Donors – 1,151 Ave. Daily Registered Donors – 7

Submitted Donation Files – 535

“Need a goodwill locator app that would tell

you where all goodwill stores are. I like to

thrift shop when I travel.”

*

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Downloads and registrations are global in reach.

Downloads – 25 countries

Registered Donors – 47 states and Puerto Rico

Top States (number of registered donors)

California – 313 (Silicon Valley 169)

Texas – 85

Florida – 64

Indiana – 48

Georgia – 44

Illinois – 41

North Carolina – 35

Arizona – 34

Oregon - 30

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Conclusion

The consistent (week over week) downloads and corresponding global registrations indicate that donors want a Goodwill Donation App and Service they can use anywhere. In addition, the number of donation files submitted, indicates that donors are using the Donation App and Service irrespective of their local Goodwill’s current inability to confirm the donation.

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How the App and Service Work

Overview – Insta-Pass Donation Service

InstantMobile Solutions provides a robust mobile app supported by a Cloud-based backend system to help donors track donations, correspond with their charity of choice, share their “good deeds” through their social networks, and easily download donation data when filing taxes. Charities benefit from automating the donation process which reduces costs and provides insight into their inventory of donated goods. By providing a value-added service to donors, charities can now ask for and receive contact information that was previously unattainable.

Donor’s Benefits

1. Electronic receipt/confirmation meeting all IRS requirements a. No more paper receipts to file and keep for years b. Confirmation if charity provided any goods or services in

exchange for the donation 2. Optional email receipt

a. Save time through every step of the donation process; from cataloging donation items to tax preparation and everything in between.

b. Donation data stored “in the Cloud” and always available

c. Donation Files downloadable to most common tax preparation software or spreadsheets

d. Catalog comprised of 24 Categories with 256 items, 1,225 Sub-Categories and1,098 Sub-Category Details and Custom Items

e. Ability to attach pictures, notes and/or 3rd party appraisals f. Optional eBay data feeds auto-fills Fair Market Value* g. Opt-in email and text messaging from Charity

“I have no idea of the value of my items,

so suggestions on that would be very

much appreciated.”

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h. Integration with Social Networks to “Share Your Good Deeds” Service free to donors

Charity’s Benefits

1. Ability to capture contact information of donors at donation sites 2. Messaging platform that keeps charities in contact with their donors

a. Email b. Text c. Social Media

3. Tracking of donated items to help reduce inventory shrinkage 4. Elimination of paper receipts and the associated costs of buying,

stocking, storing and searching for receipts 5. Integration with retail inventory management systems providing end-

to-end inventory insight and management** 6. Standard and custom** reports 7. Integrated support for cash donations via credit card and SMS* * Coming soon ** Additional cost

How the Donation System Works

In preparation for making a donation, a donor gathers items and enters them into the Donation App. This can be done any time even after arriving at a donation site. As information is entered, it is saved automatically.

Once you enter your items, the Donation File will be listed on the Donation Files page under the “New Donations” header along with:

1. A seven-digit Confirmation Number 2. Status of “Pending” 3. A white envelope next to it

Tap on the white envelope to submit the Donation File. Once submitted the envelope will turn yellow and be “Submitted.” You may continue to edit the Donation File or return it to Pending status by tapping on the yellow envelope. The Submitted status indicates that the donation is ready to be confirmed by the charity.

When you arrive at the charity’s donation site, provide the Donation Attendant with your Donation File Number(s). The Attendant confirms the donation and the Donation File is locked and is no longer editable. If you

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overlooked an item and want to add it, create a new Donation File and ask the Attendant to confirm that donation.

Charities only confirm that a donation was made. It is the donor’s responsibility to accurately record the items and assess their condition.

Donation App

The Home Page gives access to more than just a donation tracking system. With one tap on the map search icons a donor can find a Thrift Store, Donation Site or Recycling Center. There are also addresses, hours of operation and store phone numbers.

Some charities publish listings on Facebook of new and unique items available in their stores. By tapping on the shopping icon, shoppers can see what items are of interest. Customizable capabilities include:

Tap the envelop icon and send Goodwill or Customer Support a message.

Tap the “sharing” icon and share your good deeds with your social networks.

Tap the recycle icon and learn about Goodwill’s Green Initiatives and how you can help.

Donation Files

A Donation File is the folder in which the donated items and their details are stored. A Donation File is identified by its 7-digit number and the date the Donation File was originally created.

Catalog – Entering Donations into a Donation File

The Catalog is grouped into 24 Categories. The Categories are comprised of 256 Items with 1,225 Sub-Categories and1,098 Sub-Category Details. Donors have the flexibility to enter each item’s detailed description individually, as a custom item or in bulk. For example, “a bag of clothing.”

Let’s say a donor donates an older iPhone. They could enter the donation several ways.

To create a new Donation File, tap on the icon which opens the Donation Files page. In the upper left corner, select “Create” and the “Catalog” opens. Select from the Catalog “Mobile Devices” and follow the options down to the level of storage on the iPhone.

Mobile Devices (Phones, PDAs, Tablets) => Apple iPhones => iPhone 2G => 4GB

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Alternatively, on the Catalog page, tap on “Search” and enter “iPhone.” A list of Sub-Category items with “iPhone” in them will be displayed. Tap on the appropriate one and enter the information.

To enter the iPhone with a custom description, from the Catalog, tap on “Custom Item” and enter the description of the iPhone. The Fair Market Value of the item must be assigned by the donor. Sufficient documentation to support the dollar amount entered must be provided by the donor.

Notes – the note section is provided so you may document key information that may be relevant in the case of an audit by the IRS. For example, if a belt is an adult size it may have a different value than a child’s belt. You may use this description to justify the Fair Market Value.

Pictures and Documents – In the Add New Item screen, use your iPhone or iPad’s camera and tap on the camera icon to take a picture of the item or items. Multiple pictures or documents can be attached to each item.

Attach Pictures and Documents – In the Add New Item screen, tap on the paper clip icon and attach pictures or documents such as an appraisal.

Notes – the note section is provided so you may document key information that may be relevant in the case of an audit by the IRS. For example, if a belt is an adult size it may have a different value than a child’s belt. You may use this description to justify the Fair Market Value.

Where is my data stored? To save storage space on your iPhone or iPad and secure your data, all data is uploaded to a secure storage facility. You may enter and view your Donation Files on the iPhone/iPad App. The download feature is only available through a browser. Sign into your account and next to your Completed Donations Confirmation Number you will see icons representing formats of companies who make their formats open to us.

What iPhone/iPad versions are supported?

iOS versions 2, 3 and 4.

What other mobile phones are supported?

The first release of the Insta-Pass Donation App is for the iPhone and iPad. Soon Android, Windows 7 and Blackberry will be supported.

Is there a charge to the donor for this service?

Charities provide this service to their donors for free. Spread the word! Let your friends know that they too can donate by using this free service.

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What do I do if the Donation Attendant forgot to confirm my donation?

Contact your Charity via email or return to the donation site and ask the Donation Attendant to confirm your donation.

Manage Your Account

By tapping on the Account icon, the First Name, Last Name, Zip Code, Email, Phone Number and Password may be updated.

You may access a few more features through a web browser than you can through the mobile app. Examples include downloading your Donation Files to your tax software, managing your communications preferences and updating more detailed contact information.

How do I export my donations to file my taxes?

The export function is only supported through a browser. Sign into your account and the home page has a listing of your donations. To export your Donation Files, click on the icon of the tax software you or your tax advisor use to prepare your taxes. You may always download your information in spreadsheet format for backup as well.

Fair Market Value

The first version of the Donation App requires that you enter your best estimate based on IRS guidelines. In the near future, the plan is to provide a data feed from an online market such as eBay.

Service Implementation

Successful implementation of the Insta-Pass Donation Service is grouped into three areas.

Technology Requirements

1. In-Store 2. Attended Donation Sites 3. Unattended Donation Sites

Marketing

1. Advertising 2. Collateral

a. In-Store b. Donation Site c. Partner Locations

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3. Signage 4. Press Releases 5. Web Site 6. Donation Catalog Review

Staff Training

1. Donation Attendants 2. Cashiers and Store Clerks 3. Office Staff

The cost of implementation ranges significantly depending upon the number of stores and donation sites, the commitment to promoting the Donation Service and the size of the charity’s staff. The Return on Investment is calculated using these upfront costs and contrasting them with the uplift in revenue, cost savings and customer satisfaction.

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Architecture

The Insta-Pass Donation Service is a Cloud service that is accessible from any browser and any mobile device.

"I was hoping that this would be an app for the entire US not just CA. My wife and I usually move ever few years with

job transfers.”

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The following diagram shows the process flow for the Donation System.

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Future Functionality

The Donation Service is a platform which provides capabilities to address problems Goodwill agencies face, as well as, provide a value-added service to Goodwill’s constituents. As we look at developing future functionality, we break it into two categories: Donor/Shopper Facing and Goodwill Facing.

Donor/Shopper Facing

Research is clear as to what donors want and need. The first is a robust location system to provide relevant data about Goodwill, however, the donor wants to get the information and based on their location. This would include navigation from current location to the nearest or selected store or donation site. The Donation App and Service will have location-based “intelligence” to ensure that the closest locations are displayed first. The use of Location Based Services (LBS) is critical to maintaining the cutting edge user experience that donors are accustomed to with other mobile apps. Of course, the ability to search for a Goodwill location at a non-local location is also provided. This search functionality supports any criteria such as state, city, zip code and area code. The second is the ability to easily record and manage digital receipt information. We are evaluating QR Codes to make the donation acceptance process easier.

"I have already made a donation on January 1, 2012, and I would like to use this program to track that donation and others. I already received a form at my local Goodwill. How do I add my earlier donation? I have already input my donated items into a file in the app."

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Goodwill Facing

The use of the Administration Portal is designed to provide easy access to the system capabilities. Reporting and data export are two areas that will be enhanced in the next release. Many more features are envisioned and in the planning stage. Goodwill’s collaboration and input will prove invaluable as we evaluate priorities and deliver an even more robust platform that will enhance Goodwill’s brand and overall capabilities to meet its Mission goals.