2011-11-15T14:20:45-07:00 2011-06-30 990 2010-07-01 042106765 MORGAN MEMORIAL GOODWILL INDUSTRIES INC MORG 6174451010 1010 HARRISON AVENUE BOSTON MA 02119 Joanne K Hilferty 6175411414 2011-11-15 2010 2016-03-07 17:11:31Z Joanne K Hilferty 1010 Harrison Avenue Boston MA 02119 45338303 0 X WWW.GOODWILLMASS.ORG X 1905 MA To provide exemplary job training and related services to help individuals with disabilities and other barriers to self-sufficiency to achieve independence and dignity through work. Not charity, but a chance. X 15 14 852 600 0 0 7964188 7544228 7817889 8035083 695520 4711644 6149832 7543517 22627429 27834472 0 0 0 0 14029501 14280588 0 0 1078068 8702572 9229893 22732073 23510481 -104644 4323991 24998141 26224539 6934779 2549525 18063362 23675014 X See Schedule O, Statement A 0 0 8279088 0 8035083 See Schedule O, Statement B. 11533889 0 12373557 See Schedule O, Statement C. 0 0 0 19812977 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 1 0 0 1 46 0 852 1 0 0 0 0 0 1 1 0 0 0 0 X 15 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AZ CA CT FL MA MD ME MO NC NH NY OH PA RI X CAROL CARDOZO CFO 6175411287 1010 HARRISON AVENUE BOSTON MA 02119 STEVEN POGORZELSKI 2 X 0 0 0 KEVIN T BOTTOMLEY 2 X 0 0 0 MARY L REED 2 X 0 0 0 THERESA M BRESTEN 2 X 0 0 0 JOANNE K HILFERTY 40 X X 294513 0 19497 NANCY AUBREY 1 X 0 0 0 EDWARD CASSIDY 1 X 0 0 0 JOVITA FONTANEZ 1 X 0 0 0 ROBERT GITTENS 1 X 0 0 0 STEPHANIE LOVELL 1 X 0 0 0 ALLEN MALTZ 1 X 0 0 0 MICHAEL MANOOGIAN 1 X 0 0 0 PETER MORRISSEY 1 X 0 0 0 KEVIN REYNOLDS 1 X 0 0 0 LINDA THOMPSON 1 X 0 0 0 D ELLEN WILSON 1 X 0 0 0 CAROL CARDOZO 40 X 0 0 0 PATRICK DUFF 40 X 167147 0 10539 MARY SULLIVAN 40 X 0 0 0 CAROL ISHKANIAN 40 X 207782 0 8420 TERRENCE FITZPATRICK 40 X 175833 0 3805 MARY RAHAL 40 X 168045 0 10164 JOY BURGHARDT 40 X 61923 0 5483 PAUL MACNEIL 40 X 100469 0 13348 1175712 0 71256 6 0 1 0 LILY TRANSPORTATION 145 ROSEMARY STREET NEEDHAM MA 02194 TRANSPORTATION 633562 WASTE MANAGEMENT 4 TECHNOLOGY DRIVE WESTBORO MA 01581 TRASH REMOVAL 217883 GREENPAGES PO BOX 414023 BOSTON MA 02141 IT SERVICES 203837 US SECURITY ASSOCIATES 200 MANSELL CT 5TH FLOOR ROSWELL GA 30076 SECURITY SERVICES 159777 GRANT THORNTON LLP 226 CAUSEWAY STREET BOSTON MA 02114 AUDIT SERVICES 141432 7 0 0 122942 0 0 7421286 5483829 7544228 FEES AND GRANTS 561300 4548755 4548755 0 0 WORKSITE REVENUE 624310 3486328 3486328 0 0 0 0 0 0 8035083 645972 0 0 645972 0 0 0 0 0 0 0 0 0 0 7685945 8380000 7119182 4881091 566763 3498909 4065672 0 0 4065672 22500 122942 82900 -60400 0 -60400 12373557 5420658 6952899 6952899 0 0 OTHER REVENUE 900099 1018 1018 0 0 Fee for services on Renovation 233000 650000 0 0 650000 0 0 0 0 651018 27834472 14989000 0 5301244 0 0 0 0 0 0 0 0 1200093 402162 466825 331106 0 0 0 0 10350750 9073929 1144380 132441 107064 76351 21459 9254 1787545 1482247 232505 72793 835136 676679 115952 42505 65548 57570 6654 1324 152659 152659 31500 31500 0 0 60456 60456 749430 533690 167926 47814 179769 34505 38569 106695 130044 118896 9734 1414 3752372 3632890 113703 5779 942610 900328 23482 18800 0 0 0 0 151969 112797 31836 7336 83861 51670 29020 3171 0 0 0 0 650052 760914 -113766 2904 296749 259205 27578 9966 GOODS AND SUPPLIES 1022197 1000731 -8900 30366 POSTAGE AND SHIPPING 86127 18229 3938 63960 RENTAL AND MAINTENANCE OF EQUIP 475701 429059 16081 30561 TEMPORARY HELP 184033 65180 28087 90766 BAD DEBT EXPENSE 82443 82443 0 0 132373 43502 19758 69113 23510481 19812977 2619436 1078068 168280 231027 2368 2369 313249 244088 1634079 1435560 0 0 5965750 475354 489095 269642 133234 8488483 6529843 7116961 1958640 10423804 10761215 4594404 5003561 24998141 26224539 2045014 1915246 57507 36456 0 0 0 4579891 115658 0 0 252367 482165 6934779 2549525 X 3819694 9436154 5081929 4451596 9161739 9787264 18063362 23675014 24998141 26224539 X 4323991 1287661 X 0 1 1 X 1 1 X 8869653 7066595 7450932 7964188 7544228 38895596 8869653 7066595 7450932 7964188 7544228 38895596 1393548 37502048 562569 515495 573362 645972 2297398 4007 21608 30300 24686 651018 731619 41924613 39804580 0.89451 0.91899 X SCHEDULE A, PART II - OTHER INCOME ******************************************************************* DESCRIPTION **********************2006---2007---2008---2009---2010---TOTAL-*********************************************************** OTHER INCOME *******************4,007 21,608 30,300 24,686 651,018 731,619 ************************************************************* Note: Other Income includes $650,000 one time fee for services provided for renovation project from Goodwill Headquarters, Inc. (see Schedule R, Part II) which exists solely to support Morgan Memorial Goodwill Industries, Inc. which is its sole member. This payment eliminates upon consolidation of the two entities. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 32100 32100 22400313 22432413 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 550 800 23805 32100 57255 250000 250000 250000 250000 1000000 1500000 0 0 0 0 0 6061994 0 635372 0 520000 0 6177366 6257284 0 289710 0 485000 0 6061994 7902186 0 -1159902 0 485000 0 6257284 0 0.8687 0.1313 0 0 0 244481 244481 0 2023989 1344719 679270 0 1159527 901965 257562 0 5008948 4283159 725789 0 51538 0 51538 1958640 BENEFICIAL INTEREST IN TRUSTS AND SPLIT INT AGRMNT 4707069 OTHER NONCURRENT ASSETS 296492 5003561 0 OPERATING LEASE OBLIGATIONS 143579 ANNUITY PAYABLE 16028 OTHER LIABILITIES 72313 DUE TO RELATED ORG 126163 CAPITAL LEASE OBLIGATION 124082 482165 27834472 23510481 4323991 1287659 0 0 0 4810 1292469 5616460 34565233 1287659 0 0 82900 1370559 33194674 60456 -5420658 -5360202 27834472 28953581 0 0 0 5503556 5503556 23450025 60456 0 60456 23510481 SchD_P05_S00_L04 Schedule D, Part V, Line 4 Income Unrestricted Endowments and Other Endowments are intended for general support. Program Restricted Endowments are intended to support various programs such as Fresh Air Camp, youth programs and job training. SchD_P10_S00_L02 Schedule D, Part X, Line 2 FIN 48 Footnote: Goodwill is a tax-exempt organization as described in Section 501(c)(3) of the Internal Revenue Code (the Code). In fiscal year 2010, Goodwill adopted guidance which requires recognition of the benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. Management has reviewed its tax positions for open periods and determined that no provision for income taxes is currently required in these financial statements. SchD_P11_S00_L08 Schedule D, Part XI, Line 8 Net change in value of restricted funds. SchD_P12_S00_L02d Schedule D, Part XII, Line 2d Direct fundraising event expenses netted against fundraising event revenue. SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Cost of Goods Sold for retail sales. SchD_P13_S00_L02d Schedule D, Part XIII, Line 2d Part XII, Line 2d plus Part XII, Line 4b. The Good Party 145442 122942 22500 0 0 0 0 2000 80900 0 0 145442 122942 22500 0 0 0 0 2000 80900 82900 -60400 X X X X X X 0 0 0 0 0 0 0 0 0 JOANNE K HILFERTY 220456 0 67100 0 6957 0 9088 0 10409 0 314010 0 PATRICK DUFF 151747 0 15400 0 0 0 2082 0 8457 0 177686 0 TERRENCE FITZPATRICK 163683 0 12150 0 0 0 2489 0 1316 0 179638 0 CAROL ISHKANIAN 172382 0 35400 0 0 0 3279 0 5141 0 216202 0 MARY RAHAL 152545 0 15500 0 0 0 0 0 10164 0 178209 0 X 5434398 Thrift Shop Value X 5 16543 Market Value X Computer items 1 32888 Retail Value 0 0 1 0 Headquarters (building and land) in Boston, Massachusetts. 2010-09-28 8380000 independent appraisal 272523596 Goodwill Headquarters Inc 1010 Harrison Avenue Boston MA 02119 501(c)(3) 1 0 0 0 SchN_P02_S00_L02 Schedule N, Part II, Line 2 The President and CEO of Morgan Memorial Goodwill Industries also holds the position of President of Goodwill Headquarters, Inc., a related 509(a) Type 1 supporting organization to Morgan Memorial Goodwill Industries which is its sole member. All of the board members of Morgan Memorial Goodwill Industries became board members of Goodwill Headquarters, Inc. F990_P03_S00_L01 Form 990, Part III, Line 1 STATEMENT A - Organization's Mission: The mission of Morgan Memorial Goodwill Industries (Goodwill) is to provide exemplary job training and related services to help individuals with disabilities and other barriers to self-sufficiency to achieve independence and dignity through work. Not charity, but a chance. Founded in Boston's South End in 1895, Goodwill helps individuals to help themselves. It is a leading Massachusetts provider of job training and career development programs that serve individuals with disabilities and other barriers to employment. It also offers programs for young people with great potential but limited opportunities, and community outreach services for people living in low-income, underserved communities. Goodwill serves 265 communities in eastern and central Massachusetts with job training centers in Boston and Salem, a one-stop career center in Boston, 11 retail stores, a retail distribution center, multiple worksite programs, and a residential summer camp in Athol, Massachusetts. Goodwill is licensed by the Commonwealth of Massachusetts and accredited by the Commission on the Accreditation of Rehabilitation Facilities (CARF). F990_P03_S00_L04a Form 990, Part III, Line 4a STATEMENT B - Program Service Accomplishments - Program 1: In the year ended June 30, 2011, Goodwill's job training and career development programs achieved the following: * Served 880 individuals considered hardest to employ with case management, job skills and job readiness training, job placement, and post-placement services. * Assisted 8,003 individuals who needed jobs with career services and referrals to training programs through Boston Career Link, the one-stop career center Goodwill operates. * Held seven mass hiring events, four job fairs (involving 36 employers) and 89 on-site employer recruitment sessions.* Worked collaboratively with more than 125 businesses to access competitive jobs and support job training and career programs. * Delivered intensive skills training to 49 individuals through the Human Services Employment Ladder Program operated in conjunction with five human services employers. * Provided work experience and a paycheck from Goodwill to 333 individuals training in one of four social enterprises run by Goodwill (retail, housekeeping and maintenance, food service, and light assembly). The retail program is described in Part IIIb. * Delivered housekeeping and building maintenance services for 2.5 million square feet of government office buildings through the AbilityOne program with at least 75 percent of the labor hours provided by individuals with disabilities. * Served the needs of area businesses through the contracted light assembly and mailing social enterprise with the line-work completed by individuals with disabilities. In addition, Goodwill's youth programs and community outreach services benefited individuals in the following ways: * Served 100 girls in the BNY Mellon After-School Academy designed to help improve academic performance and develop leadership skills. * Launched the GoodGuides Youth Mentoring Program and enrolled 125 youth. * Engaged 23 students with special needs from local public school systems in programs helping them transition to jobs. * Assisted young people struggling with passing standardized tests necessary to graduate from high school in Massachusetts. * Provided a residential camping experience for 442 youngsters including academic enrichment, leadership development, and recreation programs. * Offered tax preparation assistance to 174 low-income individuals in the community, including 40 with disabilities. * Served Thanksgiving meals to about 1,300 individuals and provided more than 600 toys and games to children in need during the holidays. F990_P03_S00_L04b Form 990, Part III, Line 4b STATEMENT C - Program Service Accomplishments - Program 2: Goodwill's retail program operates as a social enterprise that benefits the community by providing job training; creating jobs for individuals with disabilities and other barriers to employment; and selling quality, low-cost goods that help individuals, particularly those with limited means, get the items they need at affordable prices. Job training and jobs are provided as the retail program collects, sorts, distributes, and sells donated clothing and household goods. The retail program operates 11 Goodwill Stores, operates a distribution center in Boston, and collects donations at 28 donation sites located throughout eastern and central Massachusetts. In the year ended June 30, 2011, Goodwill's retail program achieved the following: * Provided on-the-job training - and a paycheck - to adults who were motivated to overcome disabilities and other barriers, and enter the workforce. * Provided interview attire and accessories free of charge to 525 job trainees from Goodwill and other community-based job training programs to help them find jobs. * Made clothing and other products available to non-profit organizations also serving those in need, including Pine Street Inn, the largest provider of services to the homeless in the region. * Provided retail customers with access to quality clothing and household items at very affordable prices with more than 785,000 transactions. * Collected approximately 22 million pounds of donations from nearly 550,000 individual donations. F990_P04_S00_L12a Form 990, Part IV, Line 12a b and Line 34 - Morgan Memorial Goodwill Industries established Goodwill Headquarters, Inc. as a 501(c)(3) corporation which is a supporting organization for Morgan Memorial Goodwill Industries, Inc which is its sole member. During the fiscal year ending June 30, 2011 Goodwill Headquarters, Inc borrowed funds to purchase the headquarters (land and building) from Morgan Memorial Goodwill Industries, Inc. at the independently appraised value and to design and renovate the building. Morgan Memorial Goodwill Industries, Inc. guaranteed the loans and entered into a lease to use the headquarters for a monthly lease payment. The renovation was completed during the fiscal year. Goodwill Headquarters, Inc. was included in the consolidated, independent audited financial statements of Morgan Memorial Goodwill Industries, Inc. for the fiscal year ending June 30, 2011. As such, this IRS Form 990 should be reviewed in conjunction with the IRS Form 990 for Goodwill Headquarters, Inc. F990_P06_S0B_L11a Form 990, Part VI, Section B, Line 11a The IRS Form 990 return is prepared by management and is then reviewed by tax advisors from a national accounting firm. The Treasurer of the Board reviews the form and all Directors are provided a copy prior to submission to the IRS. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c The Board of Directors has established a conflict of interest policy that requires officers, directors and key employees to disclose any interests that could give rise to conflicts at the time that the possibility of a conflict arises or that they become aware that there is a possibility of a conflict. The policy outlines the process for reviewing and approving such situations. Directors recuse themselves from discussions of and votes on any related party transactions in which they have an interest. In addition, all officers, directors and key employees are required to review the policy on an annual basis and to affirmatively indicate whether or not there is any matter to disclose. A written statement of all related party transactions and other disclosures is provided annually to each member of the Board of Directors. F990_P06_S0B_L15 Form 990, Part VI, Section B, Line 15 The Board of Directors has established an Executive Compensation Policy for the CEO and vice presidents. The Compensation Committee of the board is comprised of independent members and is responsible for the overall administration of executive compensation for the CEO and the vice presidents. The Compensation Committee annually makes recommendations to the Board of Directors for approval on the compensation program for the year. On a regular basis, the Compensation Committee engages a compensation consultant to compile and evaluate data as to comparable compensation for similarly qualified individuals in comparable positions at organizations of comparable size and complexity in both the profit and the not profit sectors. The Compensation Committee also evaluates the performance of the CEO and makes a recommendation for CEO compensation to the Board and monitors the compensation of the vice presidents to assure that it is in compliance with the compensation program. The Compensation Committee reports its recommendations for approval in executive session without the CEO or any vice presidents present. Deliberations and recommendations are documented in writing. The Executive Compensation Policy was followed in setting the compensation for the CEO and vice presidents in the fiscal year ending June 30, 2011. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 The By-Laws, Articles of Organization, Conflict of Interest Policy, Audited Financial Statements and IRS Form 990 are available upon request and notification of such access is provided on the Goodwill website. F990_P08_S00_L02a Form 990, Part VIII, Line 2a - 2e RELATIONSHIP OF ACTIVITIES TO THE ACCOMPLISHMENT OF EXEMPT PURPOSES: The mission of Morgan Memorial Goodwill Industries (Goodwill) is to provide exemplary job training and related services to help individuals with disabilities and other barriers to self sufficiency to achieve independence and dignity through work. Not charity, but a chance. To accomplish this mission, Goodwill offers job training and career development programs to help individuals with disabilities and other barriers to self-sufficiency to achieve independence and dignity through work; operates social enterprises including the retail program; provides academic, leadership development, and recreational services to young people with limited opportunities to help them reach their potential; and makes a variety of community services available. Goodwill's job training programs and career services help those with barriers to employment obtain the skills they need to go to work, retain their jobs, and move up. Job training includes short- and long-term rehabilitation programs for people with developmental and physical disabilities; work skills and work readiness training for individuals facing a range of barriers to employment; skills training for human services workers; and assessment, case management, and post-placement support for all program enrollees. Career services provided through Boston Career Link, the one-stop career center Goodwill operates, include access to a state-of-the art resource room; current labor-market information; workshops on resume preparation and other topics; assessment for and referrals to job training programs; and access to jobs on-line and through multiple hiring events on-site. On-the-job training and work opportunities are available through four social enterprises: retail; housekeeping and maintenance; food service; and light assembly. The retail program is Goodwill's largest social enterprise. It provides important job training and work opportunities for individual program participants and also makes clothing and household goods available to those in need in the community through its retail stores, program offering interview attire to job trainees, and collaborations with other non-profit organizations serving individuals and communities in need. Goodwill's youth programs include: an after-school academic enrichment and leadership program for girls in communities immediately surrounding Goodwill's Roxbury headquarters; a mentoring program for young adults; services for high school students having difficulty passing the standardized tests required for graduating in Massachusetts; training and work experience to help bridge young people with disabilities to employment; and the Fresh Air Camp, an over-night camp for children from low income communities. Goodwill also offers a variety of additional community services. Together, Goodwill's programs help individuals who face barriers and live in underserved communities to reach their full potential in the workforce and get on the path to independence and dignity through work. F990_P08_S00_L07a Form 990, Part VIII, Line 7a (ii) - During the fiscal year ending June 30, 2011, Goodwill sold its headquarters (land and building) for the appaised value of $8,380,000 to Goodwill Headquarters, Inc., a 501(c)(3) organization formed to support and operate for the benefit of Morgan Memorial Goodwill Industries, Inc which is its sole member. F990_P10_S00_L10c Form 990, Part X, Line 10c See note for Part VII, line 7 a (ii) F990_P11_S00_L05 Form 990, Part XI, Line 5 Unrealized Gain on Investments HFY LLC 1010 HARRISON AVENUE BOSTON MA 02119 042106765 Youth Camp Program MA 0 0 Morgan Mem Goodwill Ind Inc GOODWILL HEADQUARTERS INC 1010 HARRISON AVENUE BOSTON MA 02119 272523596 To support Goodwill MA 501(c)(3) 11A - TYPE 1 Morgan Mem Goodwill Ind Inc 1 0 0 0 1 0 1 0 0 0 1 0 0 0 0 1 0 0 0 GOODWILL HEADQUARTERS INC d 13337500 Total loan guarantees for Goodwill Headquarters, Inc. indebtedness. GOODWILL HEADQUARTERS INC f 8380000 Independent market appraisal for headquarters building and land. GOODWILL HEADQUARTERS INC j 238622 Accrued rent expense for headquarters using straight line method. GOODWILL HEADQUARTERS INC o 650000 One time fee for Services provided for renovation project.