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March 1, 2018

Where Does $100 to Goodwill Industries of NW North Carolina Go?

by Anne Paddock

Goodwill Industries of NW North Carolina (GINWNC) is one of 161 independent Goodwill organizations that supports Goodwill Industries Worldwide (GIW) – the executive management organization that oversees all Goodwill organizations. Established in 1926, GINWNC is a non-profit 501 (c) 3 that uses the sale of donated items in their stores to fund employment and training programs that “help people find hope, opportunity, and jobs.”

Based in Winston-Salem, NC, GINWNC covers six counties geographically – Buncombe, Forsyth, Catawba, Davidson, Iredell, and Rowan – with 102 donation centers and 47 retail stores.

The most recent IRS Form 990 (2015) reports the following key information:

GINWNC had 1,778 employees who were compensated $39.5 million (an average of $22,215 per employee). 8 employees received more than $100,000 in compensation:

  • $360,437:  Arthur Gibel, President
  • $213,048:  John Cunningham, VP Retail Operations
  • $210,414:  Sherry Carpenter, VP Workforce Development
  • $208,036:  Curtis Bland, VP Finance
  • $193,327:  William Haymore, VP Facility Services
  • $163,924:  Rudy Allen, VP Human Resources and Organization
  • $158,500:  Thomas Runser, Controller

As illustrated above, $1.5 million in compensation was give to the 8 employees above. Of the 8 highest compensated employees, 7 or 88% were men, while 1 was a woman.

Spousal travel is paid for by GINWNC for Art Gibel’s wife twice a year for two Goodwill conferences.

$1,000 scholarships for higher education were provided to the daughter of John Cunningham (VP of Retail) and the son of Sherry Carpenter (VP of Workforce Development).

Chris Fox, a director of GINWNC is VP of Hanesbrands, Inc. – one of the organization’s contract services accounts in which GINWNC paid $1.3 million.

Brent Waddell, a director of GINWNC is a SVP of Branch Banking & Trust Co. which provides banking and investment services to GINWNC. Branch Banking & Trust Co was compensated $198, 567 in 2015.

Mike Gunter, a director of GINWNC is an attorney with Womble Carlyle Sandridge & Rice who provided and was compensated $272,121 in 2015.

Of the total grants awarded ($5.8 million) to other organizations, the largest recipients were:

  • $4.5 million was to Northwest NC Community Foundation for programmatic needs of GINWNC
  • $562,500 was to Crosby Scholars Community Partnership for financial support
  • $294,428 to Rowan County Crosby Scholars Community Partnership for financial support
  • $179,300 to Iredell County Crosby Scholars Community Partnership for financial support
  • $50,000 to Guiding Institute for Developmental Education for financial support

GINWNC had $101 million in assets at year-end concentrated in land, buildings, and equipment ($83 million) and cash ($15 million).  Liabilities totaled $7 million and were primarily accounts payable ($6 million).  Net fund assets were $94 million at year-end, nearly all of which was unrestricted.

Revenue totaled $63 million which came from:

  • $40 million (or 64% of revenue):  Sales of Inventory
  • $16 million (25% of revenue):  Contributions
  • $ 5 million (8% of revenue):  Workforce Development Contract
  • $ 2 million (3% of revenue):  Related Organizations

It is important to note that of the $16 million in contributions, the organization received $15 million in non-cash contributions.

Expenses totaling $57.5 million (not including $4.2 million in depreciation) can be viewed by looking at the four broad categories (management, fundraising, program services, and grants) and be looking at specific functional categories, which provides greater detail.

Expenses by Four Broad Categories (management, fundraising, program services, and grants)

  • $45.0 million (71% of revenue):  Program Services
  • $ 6.0 million (10% of revenue):  Management Expenses
  • $ 5.8 million (9% of revenue):  Grants
  • $  .7 million (1% of revenue):  Fundraising Expenses

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

$100:  Revenue

-$ 10:  Management Expenses

-$  1:  Fundraising Expenses

-$ 11:  Subtotal Management and Fundraising Expenses

 $ 89:  Revenue Remaining

-$ 71:  Program Services

-$  9:  Grants

-$80:  Subtotal Program Services and Grants

$  9:  Revenue Remaining

As illustrated above, GINWNC spent less than they received ($91 of every $100 in revenue) which resulted in an increase in net fund assets to $94 million at year-end.

Expenses by Functional Category

$57.5 million in expenses was reported as follows:

  • $39.5 million (63% of revenue):  Compensation, Benefits, Pensions, Payroll Taxes
  • $  5.8 million (9% of revenue):  Grants
  • $ 5.7 million (9% of revenue):  Office, Occupancy, Insurance, Telephone, and Conferences
  • $ 3.4 million (5% of revenue):  Other Fees for Services and other expenses (no detail provided)
  • $ 2.3 million (4% of revenue:  Equipment Rental, Transportation, Advertising
  • $  .8 million (1% of revenue) :  Fees for Services (accounting, legal, payments to affiliates-Goodwill)

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

$100:  Revenue

-$ 63:  Compensation, Benefits, Pensions, Payroll Taxes

-$  9:  Grants

-$  9:  Office, Occupancy, Insurance, Telephone, and Conferences

-$  5:  Other Fee for Services and Other Expenses (no detail provided)

-$  4:  Equipment Rental, Transportation, Advertising

-$  1:  Fees for Services (accounting, legal, payments to affiliates – Goodwill)

-$91:  Total Expenses

$  9:  Revenue Remaining

As illustrated above, the organization spent $91 of every $100 received.

Things to Consider

It is unclear what $3.4 million in other fees for services and other expenses was specifically spent on since the organization did not provide detail on the 990.  It is also unclear why GINWNC reported paying $272,121 to a law firm in the notes yet the income statement on the 990 shows legal fees of $259.888.  The law firm was also not listed as one of the independent contractors who received more than $100,000 in compensation in 2015.

Branch Banking & Trust Co. which provided banking and investment services to GINWNC was compensated $198,567 in 2015, but was not listed on the list of independent contractors who received more than $100,000 in compensation.

Hanesbrands, Inc. – one of the organization’s contract services accounts – was paid $1.3 million but was also not listed as one of the independent contractors whose compensation exceeded $100,000.

GINWNC does business with the employers of three directors and gave financial educational scholarships to the children of 2 directors of the organization (9 other educational scholarships were given to the children of GINWNC employees).

7 of the 8 highest compensated employees are men.

To read the IRS Form 990, click here.

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