Goodwill Industries

Goodwill Industries International Inc.

File:Goodwill logo.svg The Goodwill logo, designed by Joseph Selame in 1968
Company type	Nonprofit organization
Industry	Vocational training, job placement, thrift retail
Founded	1902 (1902)
Headquarters	Boston , United States
Area served	United States, Canada, Brazil, Costa Rica, Finland, Italy, South Korea, Mexico, Philippines, Taiwan, Thailand, Trinidad and Tobago, Uruguay, Venezuela
Products	Vocational training programs, thrift store goods
Website	goodwill.org

Overview

Goodwill Industries International Inc., commonly referred to as Goodwill, is a U.S.-based organization dedicated to providing vocational training, job placement assistance, and various community programs aimed at individuals encountering obstacles to employment.

The organization prioritizes hiring veterans, as well as those with limited work experience, educational background, or other employment challenges. Its operations are sustained through a network exceeding 3,200 independently managed thrift retail outlets. Goodwill functions as a federation of autonomous, community-focused entities spanning countries such as Brazil, Canada, Costa Rica, Finland, Italy, South Korea, Mexico, the Philippines, Taiwan, Thailand, Trinidad and Tobago, the United States, Uruguay, and Venezuela. Within the U.S. and Canada alone, there are 165 local Goodwill retail locations.

Originating in 1902 and adopting the name Goodwill in 1915, the organization has gradually grown over time. In fiscal year 2018, Goodwill's collective revenue reached $6.1 billion, with $5.27 billion allocated to charitable initiatives and $646 million directed toward salaries and other operational costs. Charitable services accounted for 89% of total expenditures. By 2015, Goodwill had assisted over 37 million individuals and successfully placed more than 312,000 people into jobs.

The emblematic Goodwill logo features a stylized lowercase g that resembles a smiling face; this design was created by Joseph Selame in 1968.

Retail history

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A Goodwill store located in Brooklyn

The origins of Goodwill trace back to 1902 when Reverend Edgar J. Helms of the Morgan Methodist Chapel in Boston initiated a venture known as Morgan Memorial as part of his Christian ministry. Helms, together with his congregation, gathered used or unwanted household items and clothing from affluent neighborhoods. They then employed and trained individuals facing unemployment or poverty to repair and refurbish these goods. The restored items were either returned to those who contributed labor or distributed to people in need. In 1915, representatives from a workshop mission based in Brooklyn, NY visited Helms' operation to observe its innovative practices and management methods. Subsequently, Helms traveled to Brooklyn to see their facility firsthand. This mutual exchange led Brooklyn’s workshop to embrace and modify the Morgan Memorial’s approach, while Helms agreed that the name "Goodwill Industries," used by the Brooklyn workshop, was more fitting than Morgan Memorial. This collaboration resulted in the establishment of Morgan Memorial Goodwill Industries. The alliance between Boston and Brooklyn laid the groundwork for what would evolve into Goodwill Industries as a global movement. Over time, Goodwill transformed into an international nonprofit organization which, by 2016, generated annual revenues exceeding $4.8 billion and offered job training and community services to over 300,000 individuals each year. In 1999, George Kessinger, then leader of Goodwill of Orange County, launched shopgoodwill.org to expand the organization’s reach into online sales.

Operations

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A Goodwill retail location in Oregon (2017)

As of July 2011, the United States and Canada collectively host 164 fully affiliated Goodwill member organizations. By 2006, the Goodwill Industries International network had expanded to include 207 member entities spanning the U.S., Canada, and an additional 23 countries. Each of these operates as an autonomous social enterprise, managing its own regional Goodwill retail outlets alongside job training initiatives. The Boston-based Morgan Memorial Goodwill Industries represents the original branch at the site where Goodwill was first established.

Donated apparel and household items are sold through over 3,200 Goodwill stores nationwide, on their online auction platform shopgoodwill.com, and via eBay by several regional branches. Items unsuitable for traditional store sales are redirected to "Goodwill Outlets" or "Bargain Stores," where goods are predominantly priced by weight, typically ranging from approximately $0.49 to $1.89 per pound depending on location. These outlets offer extensive selections at significant discounts, attracting a dedicated customer base, including some who engage in full-time resale operations. Bulk purchases made by vendors often find their way to developing countries.

As of December 2011, CharityWatch assigned Goodwill Industries an "A" rating for its charitable performance.

In January 2016, after operating for eight decades, Goodwill Industries serving Toronto and regions of Eastern, Central, and Northern Ontario ceased operations at its 16 stores and 10 donation centers due to financial difficulties. However, six other Canadian branches of Goodwill continue their activities.

In 2019, Goodwill Industries of Northern Michigan announced receipt of a $1.25 million grant from the Day One Families Fund established by Amazon’s CEO.

In May 2022, Goodwill Industries International revealed a $12 million commitment toward expanding its Digital Career Accelerator program. This investment includes a $7 million direct grant from Google.org as well as $7 million in Google search advertising credits. The initiative aims to enhance digital skills training and career development infrastructure, targeting over two million individuals across the United States and Canada.

GoodwillFinds

In 2022, a coalition of regional Goodwill organizations throughout the United States established a new initiative, unveiling in October 2022 the inaugural nationwide, centrally coordinated online marketplace, GoodwillFinds.com. This platform enables shoppers to buy donated goods from various locations across the country through a unified, branded, fixed-price, and contemporary e-commerce experience. Retail industry expert Matthew A. Kaness was appointed to spearhead this project, manage its rollout, and drive the platform's growth. Although numerous Goodwill member stores had previously offered some donations via online channels, most transactions were confined to physical stores, auction platforms, or third-party sites such as eBay and Amazon.

While GoodwillFinds operates independently from Goodwill Industries International, it remains a nonprofit entity aligned with Goodwill’s core mission. The online marketplace aims to introduce the Goodwill brand to a broader demographic of consumers, thereby increasing both donations and foot traffic to participating Goodwill locations nationwide.

Helms College and Edgar's Hospitality Group

In 2021, MacKenzie Scott contributed $10 million to Goodwill Industries of Middle Georgia (GIMG), which is unique among Goodwill affiliates for hosting an accredited vocational institution: Helms College. The college provides educational programs awarding certificates, diplomas, and degrees in fields such as culinary arts, industrial trades, and healthcare services. Culinary students gain hands-on experience by training in the restaurants operated by Edgar's Hospitality Group. Named after Edgar Helms, the founder of Goodwill, GIMG stands out as the sole Goodwill organization worldwide combining a college with a hospitality business to advance its mission.

Additionally, GIMG faced internal challenges when former Chief Financial Officer Tim Ligon was found to have embezzled $75,000 from the organization.

Castro pop-up

In November 2010, Goodwill launched a store in San Francisco, California specifically created to employ individuals who identify as transgender, gay, or lesbian for the first time. This temporary "Pop-up" location was established through a distinctive collaboration between Goodwill of San Francisco and the Transgender Economic Empowerment Initiative. The Castro Pop-up operated until April 2011, after which its staff members were reassigned to various Goodwill outlets across the San Francisco region.

Women Veterans initiative

In June 2013, Goodwill introduced a program aimed at assisting 3,000 women veterans in securing employment over a two-year period. This effort focuses on delivering resources and support designed to foster economic independence for female veterans.

Evening of Treasures

Goodwill Industries of Greater New York hosts an annual fundraising gala renowned for its fashionable participants and attendees. The 2023 Evening of Treasures event featured notable figures such as Jenna Lyons, who served as host, alongside designers like Tommy Hilfiger, Todd Snyder, and Willy Chavarria. These designers showcased upcycled creations crafted from items sourced at Goodwill thrift stores.

Donation policies

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Goodwill donation bin at a Safeway store in Fairfax County, Virginia

Goodwill maintains specific guidelines regarding acceptable donations, only taking items that can be resold either in their retail locations, online platforms, or through bulk sales.Template:Fix/category

Typically, donations such as automotive components, damaged furniture, large household appliances including stoves, refrigerators, washers, dryers, and exercise machines are not accepted. Additionally, most stores refrain from accepting hazardous materials like paint, pharmaceuticals, or construction supplies such as doors, wood pieces, and nails. Due to liability concerns, items like baby cribs and car seats are generally declined. Health regulations prohibit the acceptance of mattress donations; although some locations may sell new mattresses, most do not handle used ones. Certain toys are also excluded from donations at some stores because of safety issues related to potential lead paint content.

Annually, donations to Goodwill help divert approximately 4.6 billion pounds of reusable goods from entering landfills.

Executive compensation

In 2005, the Oregon attorney general's office scrutinized Goodwill Industries of the Columbia Willamette (GICW), the Portland, Oregon branch of Goodwill, over concerns regarding executive pay deemed "unreasonable." Michael Miller, the branch president, earned $838,508 in total compensation for the 2004 fiscal year. This figure was considered disproportionate compared to other nonprofit executives and placed him among the top one percent of earners nationwide. Following the state's findings, Miller consented to a 24% salary reduction, and GICW subsequently established a new committee along with revised policies to oversee employee compensation.

A report published in 2013 by Watchdog.org revealed that tax documents from Goodwill indicated over 100 locations paid workers below minimum wage while allocating more than $53.7 million collectively in executive compensation. Douglas Barr, who served as CEO of Goodwill Southern California for 17 years, was identified as the highest-paid executive within the organization nationwide. His total remuneration amounted to $1,188,733 and included a base salary of $350,200, bonuses totaling $87,550, retirement benefits of $71,050, and deferred compensation valued at $637,864. This total figure is often mistakenly reported as his salary alone.

An investigation conducted in 2016 by the Omaha World-Herald disclosed that executives overseeing local Goodwill outlets received salaries reaching $400,000. CEO Frank McGree earned a bonus of $519,000 in 2014 while more than one hundred employees were compensated below minimum wage. The inquiry revealed that fourteen executives—including McGree’s daughter—earned over $100,000 annually. Meanwhile, only $557,000 out of the organization's $4 million revenue was allocated toward programs supporting disabled individuals. Although the organization asserted that profits were intended to assist disabled individuals in obtaining employment opportunities, investigators found no evidence that store revenues supported job programs between 2011 and 2015. In response to these findings, Nebraska Attorney General Doug Peterson launched an official inquiry concluding that McGree’s salary was "excessive" and that there was "no correlation at all" between executive pay and organizational mission fulfillment. Nonetheless, Peterson found no legal violations warranting charges but recommended legislative reforms to enhance oversight of nonprofit entities.

In a video statement released in 2018 by Rich Cantz, CEO of Goodwill Northern New England (NNE), false allegations circulating under the slogan "Think Before You Donate" were addressed. These rumors claimed that owner Mark Curran earned $2.3 million annually from the organization and that no funds were directed toward charitable causes. Cantz clarified that Goodwill NNE supports charities and provides resources for brain injury rehabilitation centers as well as services for disabled individuals and veterans seeking employment. The statement also emphasized that "Mark Curran" is neither owner nor CEO. As of 2020, Steven Preston holds the position of CEO at Goodwill Industries International and reports to a volunteer board of directors. By 2020, stores throughout New England continued broadcasting this message during shopping hours to inform customers. These claims originated from an extended email covering multiple nonprofit and for-profit organizations and were subsequently debunked by Snopes.

Workers' wages

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Goodwill donation center in Hillsboro, Oregon

Goodwill Industries International has faced criticism for utilizing a federal labor law provision that permits paying employees with disabilities below the federal minimum wage. Section 14(c) of the Fair Labor Standards Act of 1938 allows organizations to secure a "special wage certificate," enabling payment of wages to disabled workers based on their evaluated performance. Out of Goodwill's total workforce of 105,000 employees, approximately 7,300 receive compensation through this special wage program.Template:Failed verification The National Federation of the Blind has labeled this practice as "unjust, discriminatory, and unethical". Conversely, some advocates for disability rights support Goodwill’s application of the special wage certificate. Terry Farmer, CEO of ACCSES—a trade association representing disability service providers—argued that removing this provision could result in disabled individuals being confined to their homes, entering rehabilitation programs, or engaging in less productive and unsatisfactory activities. Goodwill maintains that this policy serves as "a mechanism to generate employment opportunities for people with disabilities" who might otherwise remain unemployed.Template:Failed verification The organization emphasizes that "Removing this provision would eliminate a crucial tool for employers and reduce employment options for individuals with severe disabilities and their families. Without it, many disabled workers could lose their jobs." Goodwill has called on Congress to "endorse legislation that would reinforce the FLSA and enhance its enforcement," while also aiming to "maintain employment opportunities for people with disabilities who might otherwise lose access to the meaningful benefits that work provides". According to a Goodwill fact sheet from 2013 on the FLSA, "In the absence of Section 14(c), many individuals with significant disabilities would face greater challenges participating in the workforce. These roles provide paychecks they would otherwise be unlikely to earn, along with ongoing support services, job stability, and potential career growth." As of June 1, 2024, Goodwill has revised this approach so that only nine out of its 149 local affiliates across the United States continue issuing these certificates. The organization's objective is to "transition individuals with disabilities currently employed under the special minimum wage certificate into competitive integrated employment."

Lobbying

A group of smaller charitable organizations in California voiced concerns over Goodwill's advocacy for laws aimed at increasing oversight of donation bins, describing these efforts as a strategy to monopolize the clothing donation sector and boost profits. Local Goodwill representatives countered by stating that donation containers can divert resources away from local communities and contribute to urban decay. Consequently, they have supported state-level legislation mandating that donation box operators clearly disclose whether their organization is nonprofit or for-profit.

Other controversies

There have been cases where certain Goodwill outlets were exploited as channels for embezzlement. In 1998, a scheme involving store managers resulted in the theft of cash and donated items valued between $1.5 million and $15 million. This scandal led to the resignation of Vice President Robert Sasson from his role.