2017-02-15T14:50:46-06:00 2016-06-25 911233794 HAGEN KURTH PERMAN & CO PS 1111 THIRD AVENUE SUITE 800 SEATTLE WA 98101 990 2015-06-28 910568708 SEATTLE GOODWILL INDUSTRIES SEAT 2063291000 700 DEARBORN PLACE S SEATTLE WA 98144 MICHAEL JURICH VP - CFO 2063291000 2017-02-08 1 PHILIP R LAUBE CPA P00016966 2066829200 2015 2021-01-29 14:40:06Z MICHAEL JURICH 700 DEARBORN PLACE S SEATTLE WA 98144 141610388 0 X WWW.SEATTLEGOODWILL.ORG X 1923 WA SEATTLE GOODWILL IS A NONPROFIT ORGANIZATION THAT PROVIDES EMPLOYMENT TRAINING AND BASIC EDUCATION TO INDIVIDUALS EXPERIENCING SIGNIFICANT BARRIERS TO ECONOMIC OPPORTUNITY. OUR THRIFT STORE OPERATION IS AN INTEGRAL PART OF THE ORGANIZATION AND PROVIDES ON THE JOB TRAINING AND FUNDING FOR TRAINING AND EDUCATION PROGRAMS. SEE FORM 990, PART III, LINES 4A AND 4B FOR MORE INFORMATION. 18 17 3376 780 216057 -179297 2469919 2557908 96393861 99573655 184321 452444 4138319 4206164 103186420 106790171 1029671 1237149 0 0 62827429 68646992 0 0 551682 33541943 36538868 97399043 106423009 5787377 367162 110366550 112375117 40256604 41554821 70109946 70820296 X GOODWILL PROVIDES QUALITY, EFFECTIVE EMPLOYMENT TRAINING AND BASIC EDUCATION TO INDIVIDUALS EXPERIENCING SIGNIFICANT BARRIERS TO ECONOMIC OPPORTUNITY. BECAUSE JOBS CHANGE LIVES. 0 0 91495402 107399578 RETAIL PROGRAM:WE CONTINUE TO SEE GROWING COMMUNITY NEED FOR OUR THRIFT STORES WHICH SELL QUALITY, VALUE PRICED, CLOTHING AND HOUSEHOLD GOODS. WE RELOCATED OUR MOUNT VERNON WASHINGTON STORE TO A LARGER FACILITY IN A FAVORABLE RETAIL SHOPPING CENTER TO INCREASE FUNDING FOR EXPANDED JOB TRAINING AND EDUCATION SERVICES. WE PROCESSED, SOLD AND RECYCLED 55,678 TONS OF DONATED GOODS, PROVIDING MUCH NEEDED VALUE TO OUR CUSTOMERS, TRAINING, EDUCATION AND EMPLOYMENT OPPORTUNITIES FOR PEOPLE WITH MULTIPLE BARRIERS TO EMPLOYMENT AND THE ENVIRONMENTAL BENEFIT OF KEEPING THESE ITEMS OUT OF LANDFILLS. 11861880 1237149 JOB TRAINING AND EDUCATION PROGRAM:SEATTLE GOODWILL ENROLLS PEOPLE IN A VARIETY OF INSTRUCTION AND TRAINING SETTINGS, INCLUDING WORKSHOPS IN PARTNERSHIP WITH OTHER ORGANIZATIONS, ONE-ON-ONE SERVICES, ADULT BASIC EDUCATION CLASSES AND INTENSIVE BUSINESS SECTOR TRAINING PROGRAMS. STUDENT ENROLLMENT IN OUR FREE JOB TRAINING AND EDUCATION CLASSES TOTALED OVER 9,700. AS STUDENTS BECOME READY TO WORK, OUR EMPLOYMENT SPECIALISTS PROVIDE JOB SEARCH AND RETENTION SERVICES WHICH HELPED 1,485 STUDENTS FIND EMPLOYMENT. THROUGH OUR PARTNERSHIP WITH VITA, 4,917 LOWER-INCOME COMMUNITY MEMBERS RECEIVED FREE TAX PREPARATION SERVICES WHICH RETURNED $6 MILLION IN TAX REFUNDS TO PARTICIPANTS. WE ASSISTED 279 OF OUR STUDENTS ENTER COLLEGE OR TECHNICAL TRAINING INSTITUTIONS THROUGH OUR CAREER PATHWAYS INITIATIVES. 103357282 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 1 445 0 1 3376 1 1 1 0 0 0 1 1 1 1 0 0 0 0 0 X 18 17 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 WA X X MICHAEL JURICH VPCFO 2068605709 700 DEARBORN PLACE S SEATTLE WA 98144 LAURIANN REYNOLDS DIRECTOR 1.00 X 0 0 0 REAH DEPRIEST DIRECTOR 1.00 X 0 0 0 JOHN HAYDUK DIRECTOR 1.00 X 0 0 0 SCOTT MISSALL DIRECTOR 1.00 X 0 0 0 SHELLIE SADR DIRECTOR 1.00 X 0 0 0 SCOTT WILSON DIRECTOR 1.00 X 0 0 0 WAYNE LAU DIRECTOR 1.00 X 0 0 0 BRODERICK SMITH DIRECTOR 1.00 X 0 0 0 TODD R SPROUL DIRECTOR 1.00 X 0 0 0 MARIANNE SHORT DIRECTOR 1.00 X 0 0 0 MICHAEL KILLEEN DIRECTOR 1.00 X 0 0 0 TIM MYERS DIRECTOR 1.00 X 0 0 0 LINDA A MARZANO DIRECTOR 1.00 X 0 0 0 DERRYL WILLIS CHAIR & DIRECTOR 1.00 X 0 0 0 AMY MORRISON-GOINGS DIRECTOR 1.00 X 0 0 0 DICK PAHRE TREASURER & DIRECTOR 1.00 X 0 0 0 MARKEE A FOSTER IMMEDIATE PAST CHAIR & DIRECTOR 1.00 X 0 0 0 DARYL CAMPBELL PRESIDENT & CEO & DIRECTOR 40.00 X X 290929 0 15675 MICHAEL JURICH VP - FINANCE 40.00 X 223418 0 14179 SUZANNE EBLING VP - HUMAN RESOURCES 40.00 X 165032 0 8721 CATHERINE MCCONNELL VP - DEV/COMMUNICATION 40.00 X 159186 0 7555 BARBARA NABOR-GLASS VP - PROGRAMS 40.00 X 158463 0 11450 ANDREW ZOZOM JR VP RETAIL OPERATIONS 40.00 X 154358 0 11368 ELBERT FISH III VP - LOSS PREVENTION 40.00 X 150299 0 7183 NICOLE ROBERTS DIRECTOR - RETAIL/OPERATIONS 40.00 X 145033 0 6909 PAUL LAFRANCE DIRECTOR - REGIONAL 40.00 X 111651 0 4892 CRAIG FERGUSSON DIRECTOR - TRAINING/DEVELOPMENT 40.00 X 103462 0 7390 MICHAEL GREER DIRECTOR - ACCOUNTING 40.00 X 102018 0 5097 1763849 0 100419 11 0 1 0 0 X 8042 308019 397604 1844243 45699 2557908 PROGRAM SERVICES 453310 99573655 99573655 99573655 452978 452978 133058 0 133058 133058 133058 30348902 35941 30346341 39036 2561 -3095 -534 -534 127761 308019 127761 0 7825923 4307079 3518844 3518844 LOGISTICS - FREIGHT HAULING 480000 216057 216057 PUBLIC SUPPORT-OTHER 453310 209807 209807 MISCELLANEOUS 453310 128398 128398 554262 106790171 103430704 216057 585502 1237149 1237149 2045726 1327189 650533 68004 56192457 55202833 826650 162974 254175 246319 5988 1868 4581411 4527592 47106 6713 5573223 5452376 104613 16234 91423 90730 693 58975 58975 10651 2576 8075 3262268 3001328 120990 139950 1447260 1440200 5790 1270 816518 686671 129847 6601766 6601766 143360 121858 21306 196 1049843 1007523 41663 657 167544 167515 29 6751026 6483756 267270 858874 841632 15759 1483 SUPPLIES 3047282 3019800 25316 2166 DISPOSAL 2338506 2338061 445 0 POSTAGE AND SHIPPING 2061135 2022034 8079 31022 EQUIPMENT RENTAL/MAINT 1949676 1935549 11407 2720 5882761 5602825 163511 116425 106423009 103357282 2514045 551682 54238 8225 10660 35353 1557875 1965825 4636747 3542278 129163 271071 793069 975920 23016 18471 3043018 3160038 1737487 1650602 96798153 40271017 55732976 56527136 40793274 43071541 1919925 1192235 110366550 112375117 8623460 11063924 86265 93450 27408987 26306238 4137892 4091209 40256604 41554821 X 70072919 70682956 37027 137340 70109946 70820296 110366550 112375117 367162 343188 0 X X 0 1 X 1 0 X 1983821 1926539 2229789 2469919 2557908 11167976 83304715 93245315 98234008 104030317 107399578 486213933 85288536 95171854 100463797 106500236 109957486 497381909 0 288741 212094 286768 108769 896372 288741 212094 286768 108769 896372 496485537 276715 561893 720539 635420 586036 2780603 276715 561893 720539 635420 586036 2780603 298284 384643 323219 480645 338205 1824996 85863535 96118390 101507555 107616301 110881727 501987508 0.98900 0.98850 0.00550 0.00530 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 1 0 0 0 0 1 879 0 1 10651 11530 0 PART II-B, LINE 1: SEATTLE GOODWILL COLLABORATES WITH GOODWILL INDUSTRIES INTERNATIONAL TO ATTEND AN ANNUAL ADVOCACY DAY ON CAPITOL HILL IN WASHINGTON DC. MEMBERS OF CONGRESS WERE ENGAGED IN A DIALOGUE ABOUT THE FOLLOWING TOPICS IMPORTANT TO OUR MISSION: I) SUPPORT FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TNIF), II) PERSERVATION OF CHARITABLE GIVING INCENTIVES IN THE TAX CODE, III) SUPPORT FOR FUNDING THE WORKFORCE INNOVATION AND OPPORTUNITY ACT (WIOA), IV) SUPPORT FOR INCREASING THE PELL GRANT MAXIMUM AWARD, V) SUPPORT FOR INCREASING FUNDING FOR THE SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM TO $500 MILLION, VI) PROVIDING FUNDING OF $100 MILLION TO SUPPORT PROGRAMS UNDER THE SECOND CHANCE ACT, AND VII) SUPPORT FOR FUNDING YOUTH PROGRAMS. SEATTLE GOODWILL ALSO PARTNERS WITH OTHER WASHINGTON STATE GOODWILL AFFILIATES TO ENGAGE A WASHINGTON STATE LOBBYIST. THIS LOBBYIST HELPS US BUILD STRONG RELATIONSHIPS WITH LEGISLATORS, MONITORS BILLS FOR POTENTIAL MISSION IMPACT, IDENTIFIES OPPORTUNITIES TO ADVANCE OUR MISSION THROUGH LEGISLATION AND PURSUES STATE FUNDING OPPORTUNITIES. LEGISLATION OF PARTICULAR INTEREST INCLUDED: I) OPPOSITION OF HB 2903/SB 6378 (ELECTRONIC RECYCLING) AND II) SUPPORT FOR ESHB 2545/SB 6440 (FLAME RETARDANT CHEMICALS). 8145447 8145447 36514667 7843182 28671485 18896518 12163497 6733021 29398337 18896497 10501840 3843184 1367841 2475343 56527136 CD'S AND CORPORATE BONDS 43071541 F 43071541 CAPITAL LEASE OBLIGATIONS 982631 INTEREST RATE SWAP CONTRACT 957892 STRAIGHT-LINE RENT OBLIGATION 940105 DEFERRED TENANT ALLOWANCES, NET 1210581 4091209 X 111573199 343188 5000 4434840 4783028 106790171 0 106790171 110862849 5000 4434840 4439840 106423009 0 106423009 PART X, LINE 2: FINANCIAL STATEMENT FIN 48 FOOTNOTE TEXT: SEATTLE GOODWILL USES THE ASSET AND LIABILITY METHOD IN PROVIDING FOR INCOME TAXES ON ALL TRANSACTIONS THAT HAVE BEEN RECOGNIZED IN THE FINANCIAL STATEMENTS. THIS METHOD IS IN ACCORDANCE WITH FINANCIAL ACCOUNTING STANDARDS BOARD ACCOUNTING STANDARDS CODIFICATION (ASC) 740, ACCOUNTING FOR INCOME TAXES. THE ASSET AND LIABILITY METHOD PROVIDES THAT DEFERRED TAXES BE ADJUSTED TO REFLECT THE TAX RATES AT WHICH FUTURE TAXABLE OR DEDUCTIBLE AMOUNTS WILL BE SETTLED OR REALIZED. SEATTLE GOODWILL ADOPTED ASC 740-10 AS IT RELATES TO UNCERTAIN TAX POSITIONS AND HAS EVALUATED ITS TAX POSITIONS TAKEN FOR ALL OPEN TAX YEARS. CURRENTLY, THE 2012, 2013 AND 2014 TAX YEARS ARE OPEN AND SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. HOWEVER, SEATTLE GOODWILL IS NOT CURRENTLY UNDER AUDIT, NOR HAS SEATTLE GOODWILL BEEN CONTACTED BY ANY JURISDICTION. BASED ON THE EVALUATION OF SEATTLE GOODWILL'S TAX POSITIONS, MANAGEMENT BELIEVES ALL POSITIONS TAKEN WOULD BE UPHELD UNDER AN EXAMINATION. THEREFORE, NO PROVISION FOR THE EFFECTS OF UNCERTAIN TAX POSITIONS HAS BEEN RECORDED FOR THE YEARS ENDED JUNE 25, 2016 AND JUNE 27, 2015. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD - SEE ADDITIONAL EXPLANATION GLITTER GALA FUNDRAISING EVENT DIRECT EXPENSES - SEE ADDITIONAL EXPLANATION PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD - SEE ADDITIONAL EXPLANATION GLITTER GALA FUNDRAISING EVENT DIRECT EXPENSES - SEE ADDITIONAL EXPLANATION PARTS XI AND XII, LINES 2D, DETAIL FOR OTHER ADJUSTMENTS: DIRECT FUNDRAISING EXPENSES OF $127,761 IS SHOWN NETTED AGAINST GROSS INCOME FROM FUNDRAISING EVENTS (FORM 990, PART VIII, LINE 8B) AND CORRESPONDINGLY EXCLUDED FROM EXPENSES. COST OF GOODS SOLD OF $4,307,079 IS SHOWN NETTED AGAINST GROSS SALES OF INVENTORY (FORM 990, PART VIII, LINE 10B) AND CORRESPONDINGLY EXCLUDED FROM EXPENSES. GLITTER GALA FASHIONSHOW 435780 308019 127761 3000 44844 500 79417 435780 308019 127761 3000 44844 500 79417 127761 0 1 JILL JONES AWARDS 364 63262 STIPEND 222 244726 YOUTH STIPEND 82 354608 AWARDS & GRANTS 3386 367961 PURCHASE COSTS GOODWILL COUPON CERTIFICATES AND GROCERY/DEPARTMENT STORE GIFT CARDS GED EXAM FEES AND CERTIFICATION EXAM FEES 34 12980 TRANSIT PASSES/BUS TICKETS 1825 193611 FMV BUS TICKETS PART I, LINE 2: JILL JONES AWARDS: THIS FUND HOLDS BOARD DESIGNATED AND DONOR RESTRICTED FUNDS TO HELP CLIENTS WHO NEED EMERGENCY FINANCIAL ASSISTANCE, FOR EXAMPLE, TO PAY DELINQUENT RENT OR UTILITIES. THIS ASSISTANCE IS GOVERNED BY A FUND POLICY AND PAYMENTS ARE PAID DIRECTLY TO VENDORS, NOT THE CLIENT, AFTER RECEIVING APPROPRIATE DOCUMENTATION. STIPEND: SEATTLE GOODWILL INDUSTRIES' RETAIL/CUSTOMER SERVICE SECTOR TRAINING PROGRAM OFFERS STUDENTS A STIPEND TO THOSE WHO MAINTAIN ATTENDANCE STANDARDS ESTABLISHED PER POLICY. THESE STIPENDS HELP STUDENTS STAY IN THE PROGRAM, AS MANY HAVE LITTLE OR NO INCOME. YOUTH STIPENDS: SEATTLE GOODWILL'S THREE YOUTH PROGRAMS PROVIDE PARTICIPANTS WITH GENERAL AND INDUSTRY SPECIFIC JOB SKILLS TRAINING, COLLEGE PREPARATION, THE COMMUNITY SERVICE HOURS REQUIRED TO GRADUATE FROM HIGH SCHOOL, AND AN OPPORTUNITY TO BUILD THEIR TEAMWORK, LEADERSHIP, AND OTHER SOFT SKILLS. THESE PROGRAMS SERVE AT-RISK YOUTH AGES 15-24 WHO HAVE NOT COMPLETED HIGH SCHOOL OR ARE NOT WORKING. THE PROGRAMS RUN BETWEEN NINE MONTHS TO TWO YEARS. PARTICIPANTS ARE PAID A STIPEND THAT IS DEPENDENT UPON THEIR ATTENDANCE, PARTICIPATION, AND PROGRESS. AWARDS & GRANTS: CASE MANAGEMENT SUPPORT SERVICES HELP STABILIZE THE LIVES OF OUR CLIENTS, THEREBY IMPROVING RETENTION AND OUTCOMES. AWARDS AND GRANTS REFLECT COSTS FOR ITEMS PURCHASED OR PROVIDED TO CLIENTS THROUGH CASE MANAGEMENT, SUCH AS FOOD, CLOTHING, PERSONAL AND HOUSEHOLD ITEMS. EACH YEAR A FEW STUDENTS WHO HAVE GRADUATED FROM SEATTLE GOODWILL INDUSTRIES JOB TRAINING AND EDUCATION PROGRAMS ARE SELECTED, ACCORDING TO ESTABLISHED GUIDELINES, TO RECEIVE MARTIN SMITH MEMORIAL SCHOLARSHIPS TO ASSIST THE STUDENTS WITH THEIR FURTHER EDUCATION. GED EXAM FEES AND CERTIFICATION EXAM FEES: SEATTLE GOODWILL PAYS EXAM FEES FOR CLIENTS PURSUING THEIR GED OR HIGH SCHOOL DIPLOMA. TRANSIT PASSES/BUS TICKETS: STUDENTS MAY RECEIVE LIMITED FINANCIAL ASSISTANCE TOWARDS BUS TRANSPORTATION TO AND FROM JOB TRAINING AND EDUCATION FACILITIES. THIS SUPPORT ENABLES STUDENTS WITH TRANSPORTATION BARRIERS TO ATTEND TRAINING. X X X 0 0 0 1 0 1 0 1 0 DARYL CAMPBELL PRESIDENT & CEO & DIRECTOR 244929 0 46000 0 0 0 10449 0 5226 0 306604 0 120100 0 MICHAEL JURICH VP - FINANCE 203461 0 19957 0 0 0 8948 0 5231 0 237597 0 101081 0 SUZANNE EBLING VP - HUMAN RESOURCES 150296 0 14736 0 0 0 3722 0 4999 0 173753 0 74617 0 CATHERINE MCCONNELL VP - DEV/COMMUNICATION 144963 0 14223 0 0 0 6376 0 1179 0 166741 0 71983 0 BARBARA NABOR-GLASS VP - PROGRAMS 144296 0 14167 0 0 0 6347 0 5103 0 169913 0 71667 0 ANDREW ZOZOM JR VP RETAIL OPERATIONS 142114 0 12244 0 0 0 6234 0 5134 0 165726 0 61985 0 ELBERT FISH III VP - LOSS PREVENTION 136879 0 13420 0 0 0 6020 0 1163 0 157482 0 67950 0 NICOLE ROBERTS DIRECTOR - RETAIL/OPERATIONS 126933 0 18100 0 0 0 5809 0 1100 0 151942 0 72131 0 PARTS I AND II RETAIL MANAGEMENT BONUSES ARE BASED ON, AMONG OTHER FACTORS, NET CONTROLLABLE CONTRIBUTION MARGIN, WHICH INCLUDES REVENUE AS PART OF THE EQUATION. BONUSES ARE CAPPED AT 1.5 TIMES THE TARGET BONUS BASED ON PERFORMANCE AGAINST A NUMBER OF GOALS. TARGET BONUSES ARE SET AT OR BELOW 10% OF SALARY DEPENDING ON THE POSITION. VICE PRESIDENTS' BONUSES ARE BASED ON INDIVIDUAL AND TEAM PERFORMANCE, AND WHETHER OR NOT THE ORGANIZATION MEETS THE BUDGETED CHANGE IN NET ASSETS AND CERTAIN MISSION OUTCOMES. BONUSES ARE CAPPED AT 17% OF SALARY. CEO BONUS IS CAPPED AT 20% OF SALARY AND IS PAID AT THE DISCRETION OF THE BOARD AS RECOMMENDED BY THE COMPENSATION COMMITTEE. A WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY 911493002 NONEAVAIL 2010-12-16 30000000 REFINANCE EXISTING FACILITY DEBT; FINANCE NEW FACILITIES/RENOVATION 0 0 0 A 3693762 30000000 237166 26844210 2918624 2011 0 0 1 1 A 0 0 0 0 0 0 0 A 0 0 1 0 1 1 BANK OF AMERICA NA 5.400000000000 0 0 0 0 0 A 0 SCHEDULE K, PART II, LINE 3 AS OF YEAR ENDING 6/28/14, TRANCHE 1 IN THE AMOUNT OF $4,996,445, TRANCHE 2 IN THE AMOUNT OF $3,025,000, TRANCHE 3 IN THE AMOUNT OF $11,350,000, AND TRANCHE 4 IN THE AMOUNT OF $10,628,555 HAD BEEN FULLY DRAWN UNDER THE BOND. SCHEDULE K, PART II, LINE 11 $2,918,624 OF THE PROCEEDS RETIRED PRIOR DEBT INCURRED TO IMPROVE EQUIPMENT AND FACILITIES. SCHEDULE K, PART II, LINE 13 TRANCHE 1 PROJECT 7/23/10 TRANCHE 2 PROJECT 12/24/11 TRANCHE 3 PROJECT 4/5/13 TRANCHE 4 PROJECT 3/30/11 SCHEDULE K, PART III THE BOND LISTED IN PART I IS A POST DECEMBER 31, 2002 QUALIFIED 501(C)(3) BOND AND THE BOND-FINANCED PROPERTY DOES NOT RESULT IN PRIVATE BUSINESS USE. SCHEDULE K, PART IV, LINE 3C 5.4 YEARS AVERAGE TERM: TRANCHE 1 = 6.9 YEARS TRANCHE 2 = 5.6 YEARS TRANCHE 3 = 3.9 YEARS TRANCHE 4 = 5.1 YEARS SHELLIE SADR DIRECTOR 1092177 DURING A PORTION OF THE FISCAL YEAR SHELLIE SADR WAS EMPLOYED BY BANK OF AMERICA AS A SENIOR VICE PRESIDENT. BANK OF AMERICA PROVIDES DEPOSITORY, DISBURSEMENT, CASH MANAGEMENT, EQUIPMENT LEASING, INVESTMENT AND CREDIT SERVICES TO SEATTLE GOODWILL. SHELLIE SADR'S RESPONSIBILITIES WITHIN BANK OF AMERICA DID NOT INVOLVE THE SALE OF SERVICES PROVIDED BY THE BANK TO SEATTLE GOODWILL. THERE WERE NO BOARD DECISIONS RELATED TO BANK OF AMERICA DURING THE FISCAL YEAR. 0 MICHAEL J KILLEEN DIRECTOR 64714 MICHAEL J. KILLEEN IS A PARTNER IN THE LAW FIRM OF DAVIS WRIGHT TREMAINE, LLP ("DWT"). DWT IS USED BY SEATTLE GOODWILL AS AN OUTSIDE COUNSEL. MICHAEL KILLEEN DOES NOT PERFORM ANY PAID WORK PERSONALLY. ALL OF HIS TIME ON SEATTLE GOODWILL MATTERS IS PRO BONO. 0 SCOTT MISSALL DIRECTOR 35600 SCOTT MISSALL IS AN EQUITY PARTNER IN THE LAW FIRM OF SHORT CRESSMAN AND BURGESS, PLLC ("SCB"). SCB IS USED BY SEATTLE GOODWILL AS AN OUTSIDE COUNSEL. 0 X 8,710,679 - PART II X 90,862,977 - PART II X 1 44368 STOCK MARKET QUOTE X MICROSOFT SOFTWARE 0 1331 MARKET VALUE 0 1 1 PART I, LINE 32B: AS PART OF SEATTLE GOODWILL'S RETAIL PROGRAM, SOME DONATED MERCHANDISE, INCLUDING BOOKS, IS SOLD ONLINE THROUGH ENTITIES SUCH AS EBAY, SHOPGOODWILL.COM, AMAZON, ABEBOOKS, ALIBRIS AND HALF.COM. PART I, LINE 33: SEATTLE GOODWILL RECEIVES CONTRIBUTIONS OF BOOKS, CLOTHING AND HOUSEHOLD GOODS (INVENTORY) AND PROCESSES THESE CONTRIBUTIONS AS MERCHANDISE OFFERED FOR SALE IN ITS RETAIL THRIFT STORES. SEATTLE GOODWILL BELIEVES THAT INVENTORY OF CONTRIBUTED GOODS AND MATERIALS DO NOT POSSESS AN ATTRIBUTE THAT IS EASILY MEASURABLE OR VERIFIABLE WITH SUFFICIENT RELIABILITY TO DETERMINE AN INVENTORY VALUE AT THE TIME OF DONATION. ACCORDINGLY, CONTRIBUTED GOODS AND MATERIALS INVENTORY ARE VALUED AT ZERO PRIOR TO BEING OFFERED FOR SALE. AS REPORTED ON FORM 990, SCHEDULE M, LINES 4 AND 5, THE REVENUE FOR THE CURRENT YEAR OF THESE DONATED PROPERTIES ARE $8,710,679 AND $90,862,977, RESPECTIVELY. THESE AMOUNTS ARE INCLUDED IN PROGRAM SERVICES REVENUE ON FORM 990, PART VIII, LINE 2A. FORM 990, PART VI, SECTION A, LINE 2 ALL OF THESE BUSINESS RELATIONSHIPS WERE CARRIED OUT IN THE NORMAL COURSE OF BUSINESS AND AT COMMERCIALLY REASONABLE RATES. BOARD MEMBER BRODERICK SMITH HAS A BUSINESS RELATIONSHIP WITH BOARD MEMBER JOHN HAYDUK, PRESIDENT OF JTM CONSTRUCTION. MR. SMITH IS VICE PRESIDENT OF URBAN VISIONS AND HAS HIRED JTM CONSTRUCTION TO CONSTRUCT A BUILDING. IN ADDITION, URBAN VISIONS OWNS PROPERTY LEASED BY BANK OF AMERICA, SEATTLE GOODWILL'S BANK. THE MOTHER OF CATHERINE MCCONNELL, VP OF ADVANCEMENT, RECEIVES RENTAL INCOME FROM BANK OF AMERICA, SEATTLE GOODWILL'S BANK. MRS. MCCONNELL IS NOT INVOLVED IN SEATTLE GOODWILL'S BANKING DECISIONS. FORM 990, PART VI, SECTION B, LINE 11 SEATTLE GOODWILL ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE THE FORM 990 FROM INPUT AND DATA PROVIDED BY THE CHIEF FINANCIAL OFFICER AND ACCOUNTING DIRECTOR. A DRAFT FORM IS REVIEWED BY THE CHIEF FINANCIAL OFFICER AND ACCOUNTING DIRECTOR FOR ACCURACY BEFORE A FINAL FORM 990 IS PRODUCED. THE FINAL FORM 990 IS THEN PROVIDED TO ALL BOARD MEMBERS APPROXIMATELY ONE WEEK BEFORE THE FORM 990 IS FILED WITH THE IRS, AS PER IRS GUIDANCE. THE BOARD MEMBERS ARE NOT REQUIRED TO APPROVE THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST DISCLOSURE FORMS ARE DISTRIBUTED ANNUALLY AND COMMUNICATION IS MADE ABOUT THE IMPORTANCE OF DISCLOSURE OF ANY REAL OR POTENTIAL CONFLICTS OF INTEREST SO THAT THEY CAN BE APPROPRIATELY MANAGED. EACH NEW BOARD MEMBER IS ALSO PROVIDED THIS SAME FORM AND INFORMATION. KEY EMPLOYEES ALSO RECEIVE AN ANNUAL CONFLICT OF INTEREST DISCLOSURE FORM AND HAVE BEEN TRAINED ON OUR ETHICS POLICIES. CLEAR PROCEDURES ARE ESTABLISHED FOR THE ANONYMOUS REPORTING OF ETHICS VIOLATIONS THROUGH A 1-800 REPORTING SERVICE OR DIRECTLY TO THE COMPLIANCE OFFICER OR CHAIR OF THE BOARD FINANCE AND AUDIT COMMITTEE. EACH YEAR, THE COMPLIANCE OFFICER MAKES A REPORT TO THE FINANCE AND AUDIT COMMITTEE OF THE BOARD AND TO THE FULL BOARD OF DIRECTORS ON COMPLIANCE POLICY MATTERS, INCLUDING A SUMMARY OF CONFLICT OF INTEREST FORM DISCLOSURES. FORM 990, PART VI, SECTION B, LINE 15A CEO COMPENSATION IS ESTABLISHED BY THE COMPENSATION COMMITTEE OF THE BOARD MADE UP OF INDEPENDENT DIRECTORS, USING COMPETITIVE SALARY SURVEYS AND CONSIDERING ORGANIZATION AND INDIVIDUAL PERFORMANCE. THE COMPENSATION COMMITTEE REPORTS ITS RECOMMENDATION TO THE BOARD ANNUALLY BEFORE CHANGES ARE MADE TO THE CEO COMPENSATION. THE VP POSITIONS ARE APPROVED BY THE BOARD, BUT VP COMPENSATION IS ESTABLISHED BY THE CEO, ALSO CONSIDERING INDIVIDUAL PERFORMANCE AND COMPETITIVE SALARY SURVEYS. THE COMPENSATION COMMITTEE RECEIVES A REPORT OF THE VP COMPENSATION AT THE SAME TIME IT CONSIDERS CEO COMPENSATION EACH YEAR. FORM 990, PART VI, SECTION C, LINE 19 OUR FORM 990 IS PUBLISHED ON OUR WEBSITE. WE DO NOT PUBLISH OUR GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY OR FINANCIALS TO THE GENERAL PUBLIC. THESE ARE PROVIDED TO GRANT FUNDERS, LESSORS, AND LENDERS UPON REQUEST. SUMMARY FINANCIAL INFORMATION IS PROVIDED, ALONG WITH MISSION OUTCOMES, TO THE PUBLIC IN OUR ANNUAL REPORT. THE ANNUAL REPORT IS PROVIDED TO THOSE WHO HAVE REQUESTED TO BE ON OUR DISTRIBUTION LIST AND PUBLISHED ON OUR WEBSITE. FORM 990, PART VIII, LINE 7(C) COLUMN (I), SECURITIES NET GAIN OR (LOSS): REALIZED AND UNREALIZED GAINS AND LOSSES INCLUDE AMORTIZATION OF PURCHASE PREMIUMS OR DISCOUNTS ON CERTIFICATES OF DEPOSIT AND CORPORATE BONDS. FORM 990, PART XII, LINE 2C, COMMITTEE OVERSIGHT OF AUDIT PROCESS: NO CHANGE TO PROCESS FROM PRIOR YEAR. SCHEDULE D, SUPPLEMENTAL FINANCIAL STATEMENTS, PART VII, INVESTMENTS-OTHER: SEATTLE GOODWILL HOLDS CERTIFICATES OF DEPOSIT (CDS) AND INDEX FUNDS WITH READILY DETERMINABLE FAIR VALUES AS OF JUNE 25, 2016 AND JUNE 27, 2015. CDS HAVE REMAINING TERMS RANGING FROM LESS THAN 1 MONTH TO 18 MONTHS AND ARE CLASSIFIED ACCORDINGLY. THE INDEX FUNDS DO NOT HAVE A MATURITY DATE, BUT ARE HELD WITH THE OBJECTIVE OF LONG-TERM CAPITAL APPRECIATION. INDEX FUNDS ARE CLASSIFIED AS LONG-TERM ON THE STATEMENTS OF FINANCIAL POSITION. THE CDS AND INDEX FUNDS ARE VALUED AT FAIR VALUE IN ACCORDANCE WITH FINANCIAL ACCOUNTING STANDARDS BOARD ACCOUNTING STANDARDS CODIFICATION (ASC) 958-320-NOT FOR PROFIT ENTITIES, DEBT AND EQUITY SECURITIES. UNREALIZED GAINS AND LOSSES ON THE STATEMENT OF ACTIVITIES INCLUDE AMORTIZATION OF PURCHASE PREMIUMS OR DISCOUNTS ON CDS. INVESTMENT INCOME AND GAINS ON RESTRICTED INVESTMENTS WHOSE RESTRICTIONS ARE MET IN THE SAME REPORTING PERIOD ARE REPORTED AS UNRESTRICTED REVENUE AND SUPPORT. SEATTLE GOODWILL MAINTAINS SIGNIFICANT LIQUIDITY (RESERVES) AND WILL LIKELY CONTINUE TO DO SO IN THE FUTURE. IN CONSIDERING THE APPROPRIATE LEVEL OF RESERVES, SEATTLE GOODWILL EVALUATES THE FOLLOWING: - FUTURE REPLACEMENT OF FACILITIES ON ITS DEARBORN CAMPUS IN SEATTLE - OPENING OF NEW JOB TRAINING AND EDUCATION CENTERS AND NEW STORES - OPERATING RESERVES OF UP TO SIX MONTHS EXPENSES - LIQUIDITY REQUIREMENTS UNDER ITS BOND FINANCING - POTENTIAL DEBT MARKET CONDITIONS IN 2017 WHEN BANK OF AMERICA EVALUATES WHETHER IT WILL CALL FOR FULL PRINCIPAL REPAYMENT UNDER SEATTLE GOODWILL'S BOND FINANCING ON JANUARY 1, 2018. SCHEDULE L, TRANSACTIONS WITH INTERESTED PERSONS, PARTS IV AND V: ALL OF THE BUSINESS TRANSACTIONS AND RELATIONSHIPS REPORTED ON SCHEDULE L, PARTS IV AND V, WERE CARRIED OUT IN THE NORMAL COURSE OF BUSINESS AND AT COMMERCIALLY REASONABLE RATES.