Where Does the Goodwill Money Go? Learn How It Helps Communities
Lots of individuals give away their things to Goodwill or purchase them on sale. However, there is always a question that arises: What happens to the Goodwill money? Who gets the money when you donate an old jacket or purchase a second-hand lamp? So, how does it work? Let us simplify it.
What Is Goodwill?
Let us first discuss briefly what Goodwill is before we answer where the Goodwill money goes. Goodwill is a nonprofit organization. It does not mean that it is out to make profits for owners or shareholders.
It spends any money it gets to assist people and make lives better. Goodwill operates thousands of second-hand stores nationwide. Clothes, furniture, books, etc., are donated by people. After that, they sell them in shops at reasonable prices.
Where Does the Goodwill Money Go?
1. Job Training and Employment Programs
This is the biggest place where Goodwill spends its money. It helps people learn skills and find jobs. These programs are for:
Goodwill offers training in things like:
They also help people write resumes, prepare for interviews, and connect with local employers.
2. Community Support Services
Goodwill helps people in more ways than just jobs. They also use money to:
These services make sure people are ready for success in life and work.
3. Running the Stores and Operations
Part of the money is used to keep the Goodwill stores open and working. This includes:
Without stores, Goodwill wouldn’t have a way to raise money or provide jobs.
4. Paying Employees and Staff
Goodwill is a big organization, and thus, it requires workers. There are managers, store workers, and trainers among employees. Goodwill has helped many of these people. Due to the employment opportunities offered by Goodwill, they are now living and sustaining their families.
It is necessary to understand that the majority of money is spent on services and support, not on high salaries. Actually, nearly 87 cents out of each dollar is paid directly to helping people.
5. Creating Opportunities in Local Communities
When you donate or shop at Goodwill, your money helps local people. Goodwill works in cities and towns across the country. That means the money stays in your area, creating:
Why Doesn’t All the Money Go to Charity?
Others ask why Goodwill does not hand out all the money as other charities do. This is because Goodwill not only gives money but also makes actual change by investing in people. Goodwill provides people with training and employment to earn an income and become self-sufficient. That way, they not only receive the assistance once, but they receive the assistance that can last a lifetime.
Is Goodwill a Business?
Goodwill may look like a business, but it’s not a for-profit company. It’s a nonprofit. That means:
The stores make money, but the goal is to help people, not make someone rich.
How Much of the Money Helps People?
The average amount of money Goodwill earns exceeds 85 percent in direct programs and services. The remaining amount will be used to meet operational expenses such as operating stores, shipping donations, and employee salaries.
This is said to be a very high percentage when it comes to a nonprofit. It indicates that Goodwill does not waste its money and remains mission-oriented.
Final Thoughts
So, where does the Goodwill money go? The answer is simple: it goes back into the community.
Your donations and purchases help:
Goodwill turns old items into new chances. That’s why your donation or shopping trip does more than save money—it helps people live better lives.
