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Goodwill Industries

 
Law Encyclopedia: Good Will
This entry contains information applicable to United States law only.

The favorable reputation and clientele of an established and well-run busi- ness.

The value of good will is ordinarily determined as the amount a purchaser will pay for a business beyond the monetary value of its tangible property and money owed to it.

Good will is regarded as a property interest in and of itself, although it exists only in connection with other property, such as the name or location of the operation. Good will exists even in a situation where the business is not operating at a profit. Certain courts refuse to recognize good will that arises out of the personal qualities of the owner. For example, a physician cannot sell good will when selling the office building and other physical assets of his or her practice, since the physician's reputation is based solely upon personal professional abilities.

A transfer of good will from one individual to another can take place as a bequest in a will or through a sale. Ordinarily, when an individual sells the property to which good will is connected, it is automatically transferred to the buyer. However, the buyer and seller can alter this arrangement or specify details in their sale agreement. A former owner of a business has no right to interfere with the subsequent owner's enjoyment of good will following a sale transferring good will, even in the event that the sales contract does not specifically so indicate. In the event that the purchaser wants to prevent the seller from establishing a competing business in the same vicinity, the purchaser must bargain for such a provision in the contract. An agreement not to compete, sometimes called restrictive covenant, differs from good will. However, an individual who sells the good will of his or her business is not permitted to solicit former clients or customers or lead them to believe that he or she is still running the same business.

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Wikipedia: Goodwill Industries
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Goodwill Industries
Goodwill Industries Logo.svg
Founders Edgar J. Helms
Founded 1902
Headquarters Rockville, Maryland, United States
Staff President and CEO Jim Gibbons
Area served Global
Focus charity
Website http://www.goodwill.org/

Goodwill Industries International is a non-profit organization that provides job training, employment placement services and other community-based programs for people who have a disability, lack education or job experience, or face employment challenges. Goodwill is funded by a massive network of retail thrift stores, and is one of the nation's top five most valuable and recognized nonprofit brands as well as a leading social services enterprise.

Goodwill operates as a network of 183 independent, community-based organizations in the U.S., Canada and 14 other countries. In 2008, Goodwills collectively earned more than $3.25 billion, and used 84 percent of that revenue to provide employment, training and support services to more than 1.5 million individuals.[1][2]

Goodwill's logo is a stylized letter "g" that resembles a smiling face.

Contents

Operations

The clothing and household goods donated to Goodwill are sold in over 2,300 Goodwill retail stores[1] and on its Internet auction site, shopgoodwill.com.[3] Most of the items on shopgoodwill.com are items that are considered most valuable. Each regional store will ship out what they deem valuable, so that the items will be purchased for what they are worth. Antiques, collectibles, jewelry, comic books, furniture, and even automobiles are some of the items found on this website. The revenues fund job training and other services to prepare people for job success. Goodwill also generates income helping businesses and the federal government fill gaps caused by labor shortages, time constraints and limited space or equipment. Local Goodwill branches train and employ contract workers to fill outsourced needs for document management, assembly, mailing, custodial work, groundskeeping and more. Goodwill claims that more than 84 percent of its total revenue is used to fund education and career services and other critical community programs.[1]

When merchandise cannot be sold at a normal Goodwill store, it is taken to a 'Goodwill Outlet' or 'As-Is.' Items are mostly sold by weight, with prices ranging from $0.59 to $1.69 per pound, depending on the location. The wide selection and massive discounts on a variety of household goods typically attract a fervent following of regular customers, some of whom make a full-time living buying and re-selling goods. There are also many vendors who buy this merchandise in bulk, and they send the merchandise to third world countries.

History

Goodwill was founded in 1902 under the name of Morgan Memorial Goodwill Industries in Boston by Edgar J. Helms, a Methodist minister and early social innovator. Helms collected used household goods and clothing in wealthier areas of the city, then trained and hired those who were poor to mend and repair the used goods. The goods were then resold or were given to the people who repaired them.[2][4]

Today Goodwill has become a $3.25 billion nonprofit organization.[1] Helms described Goodwill as an "industrial program as well as a social service enterprise...a provider of employment, training and rehabilitation for people of limited employability, and a source of temporary assistance for individuals whose resources were depleted."

Donation policies

Goodwill donation bin at a Safeway store

Goodwill has various policies on donations, including items that they can and cannot accept. Broadly speaking, Goodwill will accept items that they can resell, either in the retail stores or as bulk lots. Goodwill generally will not accept donations of auto parts, furniture showing signs of damage,stoves, refridgerators, washers/dryers, or exercise equipment. For liability reasons, Goodwill generally will not accept baby cribs. Some branches do not accept computers, which may contain sensitive data,[5] and also have a high incidence of non-usability, which results in expensive disposal costs.[6] Sanitary regulations prohibit Goodwill from accepting mattress donations (although most Goodwill retail stores do sell new mattresses and box-springs). Recently, due to safety concerns (in particular, concerns over lead content), some Goodwill stores will not accept some toys, particularly those made in China.[7] Also, due to the transition to digital television, they no longer accept most televisions.

Goodwill will generally always accept donations of clothing, shoes, books, accessories (handbags, belts), and consumer electronics. Even if they are deemed unfit to be sold in Goodwill's retail stores, these items can be sold as bulk lots, and thus can still generate income.

Depending on regional laws, the value of the goods donated can be used as a tax deduction.

21st Century Initiative

On the occasion of its 100th anniversary in 2002, Goodwill Industries launched an international workforce development initiative designed to integrate 20 million people into the workplace by the year 2020.

Known as the Goodwill Industries 21st Century Initiative, the plan includes broad strategies for getting people into good jobs that enable them to become self-sufficient. These strategies include providing job and technology training for a 21st century workforce, offering family strengthening services to support workers and their families, and developing business opportunities to employ individuals who were previously considered unemployable. [8]

Criticism

In 2005, Goodwill Industries of the Columbia Willamette (GICW), Goodwill's Portland, Oregon branch, came under scrutiny due to executive compensation that the Oregon attorney general's office concluded was "unreasonable". President Michael Miller received $838,508 in pay and benefits for fiscal year 2004, which was reportedly out of line in comparison to other charity executives and placed him in the top one percent of American wage earners. After being confronted with the state's findings, Miller agreed to a 24% reduction in pay, and GICW formed a new committee and policy for handling matters of employee compensation.[9][10]

References

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Law Encyclopedia. West's Encyclopedia of American Law. Copyright © 1998 by The Gale Group, Inc. All rights reserved.  Read more
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