The Conversation Starts Here

2012 Annual Report to the Communitywww.thinkgood.org

When is a dining set more than a dining set?

For most of us growing up, the dining table was the most important piece of furniture in the home. It was a place of coming together each morning and evening for meals. It was the place each member of the family would share the outcomes of their day, tell stories and jokes, do homework, or be required to sit for hours until each pea on the plate had been eaten. It was the place in the home where education and lessons learned resulted in better lives.

Maybe you have had the same experience. Or maybe those days are long gone, and that dining set is now taking up space in the garage. Or it is still in the house, but the set’s style no longer quite matches your current style.

When you donate to Goodwill, we’re proud to say that the cycle of improving lives continues. That dining set or other donation furthers our mission to support individuals who are working to better their lives.

Each of the four individuals featured in this 2012 Annual Report has a unique story but a common thread: a better life through work. An unwanted dining set – or a whole truckload of your donations – can provide the training to allow people like those profiled here to improve their lives. The more you donate, the healthier and more productive our community can be.

Every one of the more than 325 staff members at Goodwill Serving the People of Southern Los Angeles County is dedicated to our mission. It is their commitment that served a record 8,348 individuals, trained 1,777 individuals and placed 243 individuals in jobs.

We do it with joy and awe, and it is because of you. It’s amazing to watch one unwanted dining set change a life.

We sincerely thank you,

Janet McCarthy Harry Saltzgaver President & CEO Chairman of the Board

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OFFICERS

Harry SaltzgaverChair

James D. Lawson, Esq.Vice Chair

Chuck C. TuckerCorporate Secretary

Edward Pearson Treasurer

Past Board ChairBrad Ward

TRuSTEES Daniel K. BonawitzSusan ByrneJohn ClaridyTracy ColungaJeffrey Cornejo, Ed.D.Larry DeJarnettAnitra DempseyDan DescargarRick DuReeDouglas Emery, DDSIvy A. GoolsbyDouglas Haubert, Esq.Jimmy JonesValerie MartinHelen NajarMichael Pauls

Ivory PhillipsMatthew SaldanaJulia Scalise

Board Member EmeritusPeggy Bryant

In Memoriam

Ronald CasrielMay 9, 1932 to September 9, 2008

Theodore Horn November 10, 1938 to November 27, 2009

Richard (Dick) ThorMarch 3, 1931 to December 18, 2011

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Performance Inspired, Inc., an Atlanta consulting and training firm that helps organizations elevate performance through the science of inspiration, surveyed 2,175 consumers to identify America’s 25 most inspiring companies.

Conducted online, the survey asked respondents which five companies they find most inspirational and why. It also asked them to describe their most recent encounter with each company. The goal of the survey was to find a correlation between successful companies and those that inspire their consumers.

The research showed that consumers who are feeling inspired by certain businesses act inspired by spending more with these companies and telling their friends about their experience.

Terry Barber, chief inspiration officer for Performance Inspired, said there is a validated set of drivers to inspiration and when these drivers are activated, it elevates employee engagement that shows up in the customer experience.

Goodwill (No. 23) – a newcomer to the list – is another “outlier among so many high-power business brands,” Barber says. “Consumers are really appreciative of the Goodwill retail stores and the perceived feel-good value they are bringing to local communities.”

From Forbes Magazine - “America’s 25 Most Inspiring Companies,” Leadership Column 9/25/12

Rob Boyajian – Director of Information Services Michael Calhau – Director of Finance Julie Dover – Director of Commercial OperationsKaren Elliott – Director of Human Resources Ben Espitia – Director of Workforce Development Sola Fa’atulu – Assistant to the President Richard Guiss – Director of PR & Development Chuck Scarpaci – Director of LiNKS Sign Language & Interpreting Services

Richard Guiss, Editor, Writer Dalena Cortez, Designer

1. Apple2. Wal-Mart3. Target4. Google5. Microsoft6. Amazon7. Chick-fil-A8. Starbucks

17. Home Depot18. TOM’S Shoes19. JC Penney20. Whole Foods21. Best Buy22. Johnson & Johnson23. Goodwill24. Trader Joe’s25. Pepsico

9. McDonald’s10. Coca-Cola11. Macy’s12. Costco13. Nike 14. Disney15. Kohl’s 16. Ford

2012 Annual Report Editorial Team

Goodwill Leadership Steering Team

Donations are essential to Goodwill’s education, training and employment programs. These programs directly receive 88 cents of every dollar of revenue, making it possible to assist people with barriers to employment and other disabilities as they move from poverty to self-sufficiency.

Donate online, or you can donate by check payable to: Goodwill SOLAC

Attention Richard Guiss Goodwill SOLAC 800 W. Pacific Coast Hwy. Long Beach, CA 90806

Forbes 2012 Top 25 Most Inspiring Companies

2013 BOARD OF TRuSTEES

Rachal recently graduated from the Vocational Nursing program at Downey Adult School and will soon be taking her State Boards for her license. She is currently employed as a home health aide at In-Home Services and serves as a part-time mentor for students in the Goodwill Healthcare Training program, the same one she successfully completed. Rachal says the program has been a true blessing. “I would definitely say things are looking up.”

Three years prior, she was uncertain of how things would turn out for her and her family. After relocating back to Los Angeles from Atlanta in 2010, she was unable to find work within the legal profession. Being a single mother of her two-year-old son, Rachal was willing to try any job.

When she heard about Goodwill’s Certified Nurse Assistant and Home Health Aide program she contacted Goodwill’s Employment Services Coordinator to express her interest in the healthcare training program. “The very next day,” she said, “my road to success began.”

Rachal received work-readiness training that included resume writing and character-building exercises. Goodwill also assisted Rachal in finding and retaining competitive employment. Through Goodwill’s Beyond Jobs program, funded by the Walmart Foundation, additional supported services were available, such as gas cards, Wal-Mart gift cards or clothing vouchers.

“Goodwill’s Beyond Jobs program is phenomenal. It provides single mothers with the tools we need to find work and the skills needed to maintain longevity in the workplace,” said Rachal. Amongst all the Beyond Jobs recipients across the nation, Rachal was selected to represent the program for Walmart Foundation’s “Live Better” series, which is a collection of more than two dozen 90-second PSAs featuring people who were helped by the Foundation’s funded programs.

One of Goodwill’s Employment Service Coordinators said, “She is a take-charge person who successfully developed plans and implemented them. Through it all, she maintained a sense of grace and optimism in the face of adversity.”

Saul was first hired to work in one of Goodwill’s retail stores in 2007. He worked in a group of three participants with a job coach for supervision and support. However, near the end of 2009 there were cutbacks, which included Saul’s group. But this is where the story begins.

Goodwill’s Supported Employment program, which serves individuals with developmental disabilities, had a retail position become available in April of 2010 at Goodwill’s Belmont store. Counselor Anne Wilson and Job Coach Supervisor Luisa Lopez said with Saul’s excellent work history at his previous location, he would be a wonderful addition to this group.

Saul is a role model for others: He is dependable, never misses a day of work and quietly does his job. When Saul is assigned a task, his job coach and the store manager know it will be completed in a timely manner.

Since working at Goodwill, Saul said he now knows how to work with people, to respond to customer questions and how to be flexible. He said he is “always learning,” and credits his Goodwill work experience for this. Saul added that he has gradually become more self-confident of his skills at work and in his personal life.

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Achiever of the Year, Saul Ordorica

Graduate of the Year, Rachal underwood

Since 2007, Colonial Care Center in Long Beach has been a primary employer of Goodwill’s Certified Nurse Assistant & Certified Home Health Aide graduates. In the last three years alone, Colonial Care has hired 21 Goodwill graduates and plans to hire more in 2013.

Cheryl Redullar, Director of Staff Development at Colonial Care Center, said, “We trust Goodwill students will be the best new hires we make.” Colonial Care Center is part of a number of other locations in Los Angeles County allowing greater opportunity to successfully place Goodwill healthcare participants into employment upon graduation.

Staff at the Colonial Care Center welcomes Goodwill’s Workforce Development staff to hold job retention information meetings with past graduates at the Center’s site. In turn, their staff provides feedback to Goodwill on the quality of graduates’ on-the-job performance.

With so many Goodwill healthcare graduates on staff at Colonial Care Center, new Goodwill hires immediately feel welcomed and at home in their new job environment. Colonial Care Center has proven itself to be a true champion and supporter of our Healthcare Training program and its graduates.

The conversation begins when you decide to donate your gently used clothing and household goods.

The donated goods are sold in our 15 retail stores throughout Southern Los Angeles County, and the rev-enue from those sales fund our programs and services.

Our Loss Prevention and Healthcare career-track job training programs and support services place people in jobs that lead to economic self-sufficiency.

When you recycle your electronic waste goods, like televisions and computer monitors, you are helping our planet.

The additional revenue generated helps fund our skills training, education and job placement programs.

Employer Partner of the Year, Health Care

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Since October 2009, Long Beach Community Action Partnership (Long Beach CAP) has been an active partner with Goodwill in the provision of workforce development services. For more than three years, Long Beach CAP has invested over $205,000 in Goodwill job training, placement, and retention services.

Long Beach CAP has underwritten job training services in Goodwill’s Health Care Training program and Loss Prevention Training program. Long Beach CAP funds have provided for GED and financial literacy training, as well as tax preparation services. Long Beach CAP has also provided supportive services such as work-related clothing vouchers, gas cards, State of California registration fees, classroom books, and bus passes.

Through this partnership, 265 low-income individuals have enrolled in workforce development services and 130 of these individuals have been placed into jobs ranging from groundskeeper, certified nurse assistant, job coach, office assistant, home health aide, welder, and loss prevention agent. The remaining individuals received computer training, resume writing, job search services and GED services, with 69 individuals enrolling in the classes and 22 successfully passing the State of California GED test.

Long Beach CAP has also provided professional training for all Goodwill workforce development staff in the use of the Self-Sufficiency Calculator and works with Goodwill in the development of resources to assist at-risk older youth who reside in the Greater Long Beach area.

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Community Partner of the Year, Long Beach CAP

Rite Aid hired eight Goodwill Loss Prevention Training program graduates last year and has hired 14 within the past two years in positions at multiple Rite Aid locations throughout Los Angeles County. Rite Aid recruiters regularly attend Goodwill Positive Recruitments (mini-job fairs) on the day of each Loss Prevention class graduation. This has given Rite Aid the opportunity to be one of the first prospective employers to meet with our new graduates.

Rite Aid has been a tremendous resource for our staff by providing feedback on the progress of graduates placed in loss prevention agent positions within the Rite Aid chain of stores. This has allowed our staff to provide job retention support to our graduates. Equally important, their participation has assisted us in fine tuning the training program to better fit the needs of the industry.

Sandy Chandler, Rite Aid Director of Asset Protection, said, “Rite Aid is pleased with the agents hired from the Goodwill program and looks forward to providing more job opportunities in the future.”

Employer Partner of the Year, Loss Prevention/SecurityDuring the five-week Goodwill Loss Prevention Training program, Silvana had a tremendous obstacle that almost made her quit the program. However, with support from the program’s staff, she realized that this was a chance to change her life, and she completed the course.

Soon after graduating, Silvana began part-time work as an “on-call” security guard with a private security firm. With her mother needing to quit work and disabled, Silvana was the only financial provider in the household, and she needed to find another part-time position. She applied for an opening at Goodwill and was hired as a job coach.

“This job gives me great pleasure, and I look forward to work every day, to work with my participants. When Goodwill said they would keep tabs on the graduates for five years they were not kidding. Goodwill really wants to know my progress, and they do want to help me achieve my goals.”

“I can now say that I have built self-confidence and courage to keep moving forward. I now set goals for myself, and I have time to view life in a different way. We donate to Goodwill but with a different feeling. It’s more about giving back. I am so thankful to Goodwill that donating is one way we can pay it forward.”

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Graduate Staff of the Year, Silvana Herrera

Scott is responsible for the overall daily operations of Information Technology (IT) resources and services agency-wide. He oversees technical support functions, provides ongoing technical training and guidance to the internal IT staff, and manages special projects with facilities and other divisions.

As a steward of Goodwill’s IT operations, Scott is dedicated to the organization and the mission at large. Scott, who is deaf, does not let barriers of any kind – communication or otherwise – get in the way of getting things done.

Scott has a knack for leveraging both information and technology. His creative use of automation, controls, and alerts has enabled him to develop a highly efficient and effective IT department. Scott works to ensure that Goodwill’s mission is carried out reliably and transparently to everyone affected.

This is not only through his technical expertise, but equally as important, through his understanding of the respective roles and collective efforts throughout the organization which make the mission possible.

“Working here for a long time in my position as Information Technology manager has enabled me to broaden my skills both at work, various businesses and at home,” said Scott. “I have enjoyed working here, helping various people with their skills on the computers, deploying new computers in offices and stores, and maintaining the servers in order to have smooth operations.”

Employee of the Year, Scott Hostetler

Keeping Items Out of Landfills

2012 Financial Statementas of December 31, 2012

The 2012 financial statement is fully audited by Harrington Group, Certified Public Accountants, LLP. To view a copy of the report, visit Goodwill SOLAC’s Website at www.thinkgood.org.

To view the list of our 2012 partner agencies, corporate and individual donors, visit www.thinkgood.org.

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Store & Resale Operations 22,449,177 85%LiNKS Interpreting 1,728,892 7%Other Sources 719,641 3%Industrial Operations 355,361 1%Workforce Development 904,716 3%Fundraising/Development 138,367 1% $26,296,154 100%

Commercial Operations 18,725,824 73%Administration and Support 3,061,761 12%Service Delivery 3,635,358 14%Fundraising, Grant Writing 185,544 1%

$25,608,487 100%

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2012 Agency Success – Goodwill SOLAC Economic Impact

2012 Impact Placements Operations TOTAL

Direct placements/employees 172 360 532

Total jobs (direct, indirect, induced) 243 458 701

Total wages ($mil) $9.5 $14.2 $23.7

Economic output ($mil) $21.9 $32.9 $54.8

Fiscal impact $751,592 $1,212,183 $1,963,775

Goodwill Community Placement Summary

In 2012, Goodwill Serving the People of Southern Los Angeles County placed an aggregated total of 172 job seekers into full-time community jobs in the Southern Los Angeles County area.

The average hourly wage per placement was $16.12, working an average of 40 hours per week for 12 months.

The ripple effect of those jobs throughout the economy generated an additional 71 jobs for a total of 243 jobs with total wages of $9.5 million and a total economic impact of $21.9 million.

The fiscal impact generated by Goodwill’s Workforce Development placements in 2012 was $751,592 for the State of California.

ROI: Every $1.00 Goodwill invested in helping individuals find jobs in 2012 returned $33.11 of economic impact to the community.

Goodwill Operations Impact Summary

Goodwill Serving the People of Southern Los Angeles County employed a total of 360 people full time.

The average hourly wage per employee was $11.92, working an average of 40 hours per week for 12 months.

The ripple effect of those jobs throughout the economy generated an additional 98 jobs for a total of 458 jobs with total wages of $14.2 million and a total economic impact of $32.9 million.

The fiscal impact generated by Goodwill operations was $1,212,183 for the State of California.

ROI: Every $1.00 Goodwill invested in Goodwill operations returned $1.72 of economic impact to the community.

Economic Impacts

(1) Direct = jobs placed or jobs held by employees of Goodwill. (2) Indirect = jobs created in industries that provide goods and services to the industry. (3) Induced = jobs created by the spending of direct and indirect employees. Study conducted by Elliott D. Pollack & Company

uses of Funds

Sources of Funds

Since 2007, we have reduced our annual trash costs to $91,057 in 2012 from $224,767 in 2007.

Community Residents Served by Goodwill SOLAC in 2012

• 8,348 individuals accessed job training and mission-related services

• 120 individuals received financial literacy training

• 92% of the students who completed our Loss Prevention program were placed into local jobs

• 58% of the students who completed our Certified Nursing Assistant/Home Health Aide program were placed into local jobs

• 75% of the students who completed our Medical Billing & Coding program were placed into local jobs

• 3,066 individuals were assisted with sign language interpreting services

• 349 individuals were employed by Goodwill at year end

Our company associates “took the pledge” challenge presented by the organization in May of 2010:

• “I pledge to focus on protecting our Earth and to help the environment when possible by recycling: cardboard, paper, computers, plastic, clothing, and household items. I also pledge to educate others about our mission and to live by protecting the Earth from unspoiled water, unpolluted air, and protect natural resources for all life.”

Through our employee-driven Waste Reduction Task Force, we have added a number of items we recycle at our main facilities and store locations, which includes aluminum cans, plastic bottles, glass bottles, paper bags, paper, cardboard, plastic bags, TVs, monitors, shrink wrap, textiles, metal, plastic,

shoes, books, paper, frozen dinner cardboard boxes, and computers.

Our 15 stores served over one million Goodwill shoppers, generating 85% of the revenue that funded our mission and programs. We want to thank our more than 364,000 donors. Whether it’s clothing or household goods sold in our stores or financial donations, 88 cents of every dollar goes directly to providing opportunities for people to achieve economic stability and to build strong families in the communities we serve.

We strengthened our relationships with local businesses and community organizations and formed new ones through our community donation events. We held e-waste and donation drives, inclusive of our continued partnerships with Kaiser Hospital, Toyota uSA, and the

second and eighth Long Beach City Council Districts, to name a few. We held school donation drives at Westerly School, and a book drive with Hughes Middle and Longfellow Elementary schools. We plan to launch our school fundraising donation drive program in the fall of 2013.

Last year our retail team opened a new store in the Gardena Gateway Shopping Center. As laid out in our three-year strategic plan, we sold our old Gardena location. To make it more convenient for our donors, we rolled out greater technology with a point-of-donation system at all retail store sites.

Our e-commerce site Shopgoodwill.com and our online book sales generated close to a million dollars in sales. We continued our efforts in the area of waste reduction and recycled more than 805,000 pounds of e-waste and processed 14.5 million pounds of donated goods.

LiNKS Sign Language Interpreting Services

As both a revenue generator and provider of contract employment for nearly 200 individuals (sign language interpreters), LiNKS Sign Language Interpreting Service provided interpreting services for more than 3,000 Deaf or Hard-of-Hearing individuals in such areas as education, social services, business, healthcare and more.

LiNKS named Aline Kozanoghli as Interpreter of the Year. Aline joined LiNKS Interpreting’s pool of interpreters in February 2012 doing primarily medical appointments and in-time school meetings for

clients who spoke Armenian, Arabic, Spanish, and English. Her assignments took her from Lancaster to Riverside and to Los Angeles where she worked 8-10 hour late shifts at a high-volume emergency room using her Spanish skills. In the summer of that year, Aline attended a LiNKS 40-hour medical interpreting class and earned her Certification as a Medical Interpreter.

LiNKS Sign Language & Interpreting Services® provides translation in over 20 languages. Language interpretation is the facilitation of communication (oral or sign language) between users of different languages, including Arabic, Mandarin, Vietnamese and Korean.

Whether a client needs certified sign language interpreters in Los Angeles, interpretation services in Anaheim or translating a Spanish-speaking hospital patient in New York, LiNKS is always here to serve you and your industry.

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Workforce Development served 4,743 individuals through its various training programs in partnership with the City of Long Beach Workforce Investment Network, the City of Long Beach Youth Opportunity Center, the Long Beach Multi-Service Center, Long Beach Community Action Partnership, the Long Beach unified School District School for Adults, and Secure-Tek, Inc.

Goodwill graduated its 17th Loss Prevention Training program class with 73 participants completing the entire five-week training program. Each class recorded a range of 18 to 24 apprehensions while “undercover” at various Goodwill retail sites, which created real-world training experiences for the

students that increased their marketability with many companies throughout Los Angeles and Orange counties.

The Goodwill Health Care Training program added a new allied healthcare training program, Phlebotomy, in 2012 as part of a demonstration project with the Southern Los Angeles County Regional Occupational Center in Torrance. In 2012, the entire Health Care Training program consisted of Certified Nurse Assistant/Certified Home Health Aide, Medical Insurance Billing & Coding, and Phlebotomy.

In 2012, 223 individuals experiencing homelessness accessed Goodwill services at the Long Beach Multi-Service Center. Services included life skills training classes, resume preparation, mock interviews, and job placement services. Goodwill continued its third year in collaboration with Long Beach Community Action Partnership. This program serves low-

income individuals with job search, GED training, supportive services, and computer training.

Goodwill was also chosen as one of four sub-grantees faculty sites nationwide for the Goodwill Industries International’s Beyond Jobs 2.0 initiative funded by the Walmart Foundation, a two-year initiative serving low-income unemployed or underemployed women.

unemployment/Dislocated Worker 527

Working Poor/Incumbent Worker/underemployed 216

Welfare Recipient 156

At-Risk Youth 94

Persons with Criminal Backgrounds 37

Homeless 138

Older Worker 31

Non English Speaking/Limited English Proficiency 12

Lack of GED/High School Equivalency 65

Lack of/Low Literacy 24

Other Disadvantaging Condition 298

Blind or Low Vision 5

Deaf or Hard of Hearing 3,066

Other Physical Disability 1

Neurological Disability 2

Learning Disability other than Autism 9

History of Substance Abuse 6

Psychiatric and/or Emotional Disability 16

Developmental Disability other than Autism 14

Other Disabling Conditions 15

unknown or unreported Barriers 3,616

Demographics of People Served in 2012

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(Left to Right) Silvana Herrera, Rachal underwood, Scott Hostetler, and Saul Ordorica continue the conversation regarding Goodwill’s education, training and employment programs that give people choices and the opportunity to become self-sufficient.

Goodwill partners with the community, transforming donated goods into job training, education, and placement services for individuals with barriers to employment.

LiNKS Sign Language & Interpreting Services800 W. Pacific Coast Hwy.Long Beach, CA 90806 (800) 742-0070 M-F (562) 331-09278 (Weekends/Holidays) Request Interpreter (888)-742-0070 www.linksinterpreting.com

Goodwill SOLAC Main Facility 800 W. Pacific Coast Hwy. Long Beach, CA 90806 Phone: (562) 435-3411 TTY: (562) 590-8588 www.thinkgood.org For a Store, Donation Center, or to Donate online www.thinkgood.org