Charity Review

Issued: July 2016 Expires: July 2018

Goodwill Industries of Mississippi, Inc.

Standards Not Met
 
(601) 853-8110 104 E State St, Ridgeland MS 39157-4503 www.goodwillms.org
  1. Conclusions
  2. Complaints
  3. Purpose
  4. Programs
  5. Governance & Staff
  6. Fund Raising
  7. Tax Status
  8. Financial
  9. BBB Comment
Conclusions

Goodwill Industries of Mississippi, Inc. does not meet the following 4 Standards for Charity Accountability.

Standard 13: Accurate Expense Reporting - Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

Goodwill Industries of Mississippi, Inc. does not meet this standard because:

Despite evidence of fundraising activities, the charity's audited financial statements for the fiscal year-ended December 31, 2015, did not include expenses for fundraising activities. 

Additionally, the auditor did include a basis for qualified opinion, as the charity does not record the value of donated goods received until such assets are sold. This is a departure from accounting principles generally accepted (GAAP) in the United States of America. 

Standard 14: Budget Plan - Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

Goodwill Industries of Mississippi, Inc. does not meet this standard because:

The charity's budget for the current fiscal year does not identify the total amount projected to be spent on fundraising.

Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

Goodwill Industries of Mississippi, Inc. does not meet this standard because:

The charity's most recent annual report to the public did not include the amount the charity spent on program service, fundraising, or administrative expenses during the past fiscal year.

Standard 18: Donor Privacy - Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

Goodwill Industries of Mississippi, Inc. does not meet this standard because:

Although the charity's website, http://goodwillms.org, provides access to a privacy policy, the policy does not tell website visitors what security measures are in place at the charity to safeguard the personal information collected by the charity. 

In addition, BBB requested, but did not receive, complete information on the organization and is unable to verify the organization's compliance with the following Standard(s) for Charity Accountability: #9

Complaints

Customer Complaints Summary Read complaint details

1 complaint closed with BBB in last 3 years | 0 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 1
Total Closed Complaints 1

Purpose

[To assist] people with disabilities and other barriers to obtain employment.

Incorporated: 1955 in MS

Programs

Goodwill Industries of Mississippi provides employment, self-respect, vocational skills, training, and occupational development to people with disabilities and other barriers to employment. The jobs created provide services and support to individuals who want to work but have encountered challenges to obtaining employment through conventional methods. Goodwill Industries of Mississippi operates six donation and retail centers throughout the state, creating revenue through resale and employment opportunities. According to the organization, in 2014, 73 vocational training clients were assisted through Goodwill Industries of Mississippi’s partnership with the Mississippi Department of Rehabilitation Services. 

Governance & Staff

Board Chair: Ms. Stephanie Shaw, Assistant Controller Business Affiliation: East Group Properties

CEO: Mr. David Hollingsworth, President and CEO Compensation:* $100,479

Board Size: 23

Staff: 110

* Compensation includes annual salary and, if applicable, benefit plans, expense accounts and other allowances.
Fund Raising
Method(s) used: Invitations to Fundraising Events Internet Appeals Membership Appeals Solicitations for Used Clothing

% of Related Contributions on Fundraising: Unable to Determine

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on Goodwill Industries of Mississippi, Inc. Audited Financial Statements for the fiscal year ending Thursday, December 31, 2015.

Source of Funds
Store sales (less cost of goods sold of $50,497) $3,974,052
Rehabilitation fees $343,235
Vending sales $1,734
Wiper sales $14,101
Interest and miscellaneous income $5,644
Goodwill Industries Volunteers Services $82,125
Other contributions $6,244
United Way $910
Total Income: $4,428,045
 
Fusion Chart
 
Program Expenses: $3,618,396
Administrative Expenses: $959,490
Total Expenses: $4,577,886
 
Income in Excess of Expenses: ($149,841)
 
Beginning Net Assets: $1,891,327
Ending Net Assets: $1,741,486
Total Liabilities: $322,073
Total Assets: $2,063,559

BBB Comment

Retail Locations:

Centre Park
863 Centre Street
Ridgeland, MS 39157
(601) 991-9299

Crossgates Shopping Center
5708 Highway 80 East
Pearl, MS 39208
(601) 664-3443

Fifty One Place
637 Highway 51
Ridgeland, MS 39157
(601) 605-0948

Metro Center
#2 Twelve Oak Circle
Jackson, MS 39204
(601) 922-3916

Goodwill Plaza
2305 Hardy Street
Hattiesburg, MS 39401
(601) 584-0448


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This report is not to be used for fund raising or promotional purposes.

Standards Legend

  • Meets Standards IconMeets Standards
  • Standards Not Met IconStandards Not Met
  • Did Not Disclose IconDid Not Disclose
  • Review in Progress IconReview in Progress
  • Unable to Verify IconUnable to Verify
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Standard 1: Board Oversight


Description:

Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

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Standard 2: Board Size


Description:

Soliciting organizations shall have a board of directors with a minimum of five voting members.

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Standard 3: Board Meetings


Description:

An organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

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Standard 4: Board Compensation


Description:

Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

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Standard 5: Conflict of Interest


Description:

No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

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Standard 6: Effectiveness Policy


Description:

Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

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Standard 7: Effectiveness Report


Description:

Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

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Standard 8: Program Expenses


Description:

Spend at least 65% of its total expenses on program activities.

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Standard 9: Fund Raising Expenses


Description:

Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

BBB requested, but did not receive, complete information on the Goodwill Industries of Mississippi, Inc.’s finances and is unable to verify the organization's compliance with this standard.
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Standard 10: Accumulating Funds


Description:

Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

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Standard 11: Audit Report


Description:

Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

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Standard 12: Detailed Expense Breakdown


Description:

Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

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Standard 13: Accurate Expense Reporting


Description:

Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

Goodwill Industries of Mississippi, Inc. does not meet meet this standard because:

Despite evidence of fundraising activities, the charity's audited financial statements for the fiscal year-ended December 31, 2015, did not include expenses for fundraising activities. 

Additionally, the auditor did include a basis for qualified opinion, as the charity does not record the value of donated goods received until such assets are sold. This is a departure from accounting principles generally accepted (GAAP) in the United States of America. 

Close

Standard 14: Budget Plan


Description:

Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.

Goodwill Industries of Mississippi, Inc. does not meet meet this standard because:

The charity's budget for the current fiscal year does not identify the total amount projected to be spent on fundraising.

Close

Standard 15: Truthful Materials


Description:

Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

Close

Standard 16: Annual Report


Description:

Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

Goodwill Industries of Mississippi, Inc. does not meet meet this standard because:

The charity's most recent annual report to the public did not include the amount the charity spent on program service, fundraising, or administrative expenses during the past fiscal year.

Close

Standard 17: Website Disclosures


Description:

Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

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Standard 18: Donor Privacy


Description:

Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

Goodwill Industries of Mississippi, Inc. does not meet meet this standard because:

Although the charity's website, http://goodwillms.org, provides access to a privacy policy, the policy does not tell website visitors what security measures are in place at the charity to safeguard the personal information collected by the charity. 

Close

Standard 19: Cause Marketing Disclosures


Description:

Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

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Standard 20: Complaints


Description:

Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.