Where Does $100 to Gulfstream Goodwill Industries Go?

Gulfstream Goodwill Industries, Inc. (GGI) is based in West Palm Beach but serves five counties (Palm Beach, Martin, St. Lucie, Indian River and Okeechobee) in South Florida.  A 501 (c) 3 established in 1966, GGI’s IRS Form 990 (2016) reported the following key information about the organization:

The organization had 1,660 employees in 2016, of which 1,200 were employed in general retail operations and transportation.  GGI also operates a residential homeless shelter program and a labor program for job training and employment.

5 individuals received more than $100,000 in compensation:

• $460,713:  Marvin A Tanck, CEO and President
• $194,246:  Kathryn Spencer, VP Human Services
• $157,511:   Sherry Staff, CFO
• $135,521:  Cassandra Fulwood, VP
• $117,319:  Brian Edwards, VP Marketing

5 independent contractors received more than $100,000 in compensation:

• $375,961:  Penske Truck Leasing Company (vehicle leasing)
• $357,393:  Wex Bank/Wright Express (vehicle maintenance)
• $215,024:  My Florida Maintenance (cleaning)
• $200,948:  HVAC Mechanical Services (air conditioning)
• $199,021:  iVenture Solutions (consulting)

GGI had $17.9 million in assets at year-end which was primarily land, buildings and equipment ($10.3 million), inventories ($2.7 million), accounts receivable ($2.4 million), prepaid expenses ($1.5 million), and publicly traded securities and cash ($1 million).

Liabilities totaled $8.8 million in tax exempt bond liabilities ($5.6 million), accounts payable and accruals ($2.2 million), and secured mortgages and other liabilities ($1 million).

Net Fund Assets were $9.1 million at year-end of which the entire amount was unrestricted.

GGI reported the receipt of $48 million in revenue which came from contributions ($33.9 million), government grants ($7.5 million), program services – contracts, employment and training, and participant rents – ($4.6 million). and miscellaneous sources – administrative fees, e-book sales, etc – ($2 million). It is also important to note GGI received $33.2 million in non-cash contributions (which is included in contributions).

Expenses can be analyzed two ways:  by broad functional category (program, grants, management, and fundraising) or by specific categories, which provides more detail.

Expenses by Broad Functional Category (program, grants, management, and fundraising)

GGI gave out less than $40,000 in grants to 38 individuals in 2016 so this number does not appear below because the amount is so small.

GGI reported $47.8 million in expenses (not including $1.3 million in depreciation) categorized as follows:

• $42.9 million (or 89% of revenue):  Program Expenses
• $ 4.2 million (or 9% of revenue):  Management Expenses
• $   .7 million (or 2% of revenue):  Fundraising Expenses

Using the above information, $100 in revenue was spent as follows:

$100:  Revenue

-$    9:  Management Expenses

-$    2:  Fundraising Expenses

-$  89:  Program Expenses

$100:  Total Management, Fundraising, and Program Expenses

Expenses by Specific Category

The $47.8 million in expenses (not including $1.3 million of depreciation) by specific category is summarized as follows:

• $28.9 million (60% of revenue): Compensation, Benefits, Pensions, Payroll Taxes
• $15.5 million (32% of revenue):  Office, IT, Occupancy
• $ 1.6 million (4% of revenue):  Travel and Conferences
• $ 1.3 million (3% of revenue):  Fees for Services (no detail provided for $1 million) and advertising
• $  .5 million (1% of revenue):  Fees for Services (accounting, legal, investment management)

Using the above information, $100 in revenue was spent as follows:

$100:  Revenue

-$ 60:  Compensation, Benefits, Pensions, Payroll Taxes

-$ 32:  Office, IT, Occupancy

-$  4:  Travel and Conferences

-$  3:  Fees for Services and advertising

-$  1:  Fees for Services (accounting, legal, investment management)

-$100:  Total Expenses

As illustrated above, most revenue is spent on employee compensation and occupancy.