A report issued by Attorney General Doug Peterson claims Goodwill Omaha lost sight of its nonprofit mission, leading to widespread financial abuse.
Peterson told reporters during a news conference former Goodwill CEO Frank McGree added retail stores and raised revenue. Still, it went from serving 3,294 individuals in 2012 to 1,360 two years later.
“So, as you see a period of time where stores are expanding, opening up and the store growth and the revenue numbers may be going up. In fact, there’s no correlation at all to the number of people that are actually being served under their mission statement,” Peterson stated.
Goodwill Omaha is a nonprofit organization which has a stated goal of helping the disabled and the disadvantaged find jobs.
The Attorney General’s Office began its investigation into Goodwill Omaha after the Omaha World-Herald published a series of articles questioning its operations.
The AG report notes Goodwill Omaha had eight stores in 2000. That doubled by 2016 with some stores moving. One closed.
Peterson said, as the number of stores increased, so did executive pay.
“Although net revenue was declining, in 2005 there were five executives who made over $100,000 at Goodwill,” according to Peterson. “By 2015, there were 14 execs that were making over $100,000 and that was primarily due to the expanding store operations and the need to hire additional execs.”
Goodwill Omaha has a new CEO, Michael McGinnis, and has overhauled its management team. It has reduced the size of its board and now offers training to board members and has bolstered its financial guidelines.
Peterson criticized the Goodwill board for failing to respond to red flags which arose and persistent employee complaints.
Peterson praised the changes which have been made since the newspaper articles were published.
“We were very encouraged throughout our investigation that the new management structure and direction of Goodwill has taken significant steps of self-correction,” Peterson said.
The Attorney General’s Office has filed a Consent Judgment in Douglas County District Court against Goodwill Industries and Goodwill Specialty Services.
AUDIO: Attorney General Doug Peterson news conference on investigation of Goodwill Omaha. [19:30]