Saturday, October 31, 2009

The Not So Good Will of Goodwill of Central Indiana

Nothing irks me more than charitable organizations which prey on the good will of people to gain contributions which does little more than enrich the officers and top employees of the charitable organization.

Today I examine Goodwill Industries of Central Indiana, Inc. According to the company's 2008 tax return, $33,947,162 was spent on salaries and benefits for officers and employees. This was out of a total revenue of $58,142,665. Thus, over 58% of the revenue received by Goodwill Industries goes to income and benefits for officers and employees. That's not even counting other administrative expenses. James McClelland, President and CEO of Goodwill pulls down $393,990 according to the company's 2008 report. Other officers/top employees' compensation include Daniel J. Riley $199,240, Keith Reissaus $167,316, Kent Kramer $190,132, Cindy Graham $154,084, James Humphrey, $169,529, and Linda Brimmer $166,275.

Goodwill Industries of Central Indiana has stashed away $20,800,485 in assets according to the company's 2008 tax return.

According to Goodwill's mission statement, it is a "voluntary health and welfare organization" whose "overriding mission is to help adults prepare for, find and keep jobs and help young people prepare for life and work." Perhaps. But with Goodwill handing out that sort of compensation to their executive and top employees, I'm going to send my used clothing to my church instead of Goodwill. I would recommend others do the same.


Had Enough Indy? said...

We donate to AmVets. They'll come pick the stuff up, too. I looked at for AmVets in Indianapolis and I am confused as to whether I saw the correct organization; none of which drew any salary for the principals. I'll ask when they call tonight.

Diana Vice said...

These people aren't worth that much money! Thanks for shining sunlight on this.

Paul K. Ogden said...


I am convinced that the way to wealth is to start a non-profit.

You ought to see the Indianapolis Zoo salaries. Unbelievable. I've concentrated more on those non-profits that receive taxpayer money. But I think people should look closely at how these organziations are paying themselves before donating.

Mely's Rugs said...

Doesn't Goodwill employ the handicapped? I always thought they did. Couldn't that be why so much of their funding goes for salaries?

devemaster said...

Yes they do. That is a good point. Also, we should look at to what are we comparing Goodwill Industries? If a multi-billion dollar NPO that earns its revenue by recycling a resource is paying out a majority of its revenue in salaries, is that really as bad as another multi-billion dollar company that exploits a new natural resource AND its workforce in order to payout almost all of its profits to officers and share-holders while still taking subsidies from various governments? Most large NPO's have similar balance sheets. Most of the money goes to salaries. But would you rather have these people working in the private sector?
They are still contributing more percentage-wise to charity then almost any privately held or publicly traded for profit company.