Common Myths About Goodwill (And the Truth!)

One of the roles as a leader is to help define and clarify an organization’s message, purpose, and values. And that occasionally includes addressing misconceptions, distortions and untruths, particularly when they persist for extended periods of time. As the proud leader of Goodwill of South Central Wisconsin, I believe that transparency is a foundational aspect of servant leadership. Today’s blog is dedicated to separating some of the common misconceptions and gossip I’ve heard with reality. 

A Closer Look Into Goodwill

One of the most persistent and honestly ridiculous myths about Goodwill is that our CEO “makes millions of dollars”. This misconception can be traced back to a viral social media story that began circulating around 20 years ago, claiming that a fictional Goodwill “owner/CEO” named Mark Curran earned $2.3 million. There is no Goodwill “owner” by that or any other name (because no one owns Goodwill; Goodwill is a nonprofit), and the claim is simply not true. 

It is also worth clarifying what leadership looks like here at Goodwill of South Central Wisconsin. Our organization is led by a woman (me), and I serve as its President and CEO. I am not the owner of Goodwill. Like nearly all nonprofit organizations, Goodwill is governed by an independent board of directors, established written bylaws, and operates with a mission focused on serving our community.  The board determines the CEO’s compensation based on a number of factors including experience, tenure, and performance. Moreover, all nonprofits are required to publish the compensation of its top leaders as part of an annual IRS tax return form called a 990. A quick review of this document will immediately confirm that no executives at our Goodwill make anywhere $2.3 million per year and they never have. The same goes for our national umbrella organization, Goodwill Industries. 

And while you may hear stories surrounding Goodwill CEOs that paint a picture of private jets and extravagant homes, that certainly is not my reality or the reality of anyone I know who runs a Goodwill organization. I grew up in a working-class family in a rural town, drive a Honda CR-V, and I live in a typical ranch-style home on Madison’s far northeast side. My role is about leading an organization that works every day to help people in South Central Wisconsin live, work, and thrive.  I serve at the direction and pleasure of our Board, and am accountable for the overall performance of the organization and fulfillment of our mission.  

But more important than rumors about the CEO of Goodwill, I would like to address some of the other myths and refocus the message to our mission and the huge amount of GOOD work being done here at Goodwill of South Central Wisconsin. 

So, let’s bust the myths and focus on the mission at hand. 

Top 10 Biggest Goodwill Myths You May Have Heard 

Myth #1: “Goodwill is a for-profit company.”

The Truth: Goodwill organizations are 501(c)(3) nonprofits. The retail stores generate revenue to support our nonprofit mission services for housing, workforce development and job training, along with free income tax preparation here in South Central Wisconsin. 

Myth #2: “Goodwill is owned by a huge corporation.”

The Truth: Goodwill is actually a network of independent local nonprofit organizations. Goodwill Industries International (itself a nonprofit organization governed by an independent board of directors) supports the network, but local Goodwill organizations have their own board of directors, leadership, and programs to support the unique needs of their local communities. 

Myth #3: “Goodwill donations do not stay or help in our local community.” 

The Truth: All donations made to our local stores help individuals with disabilities and barriers to live, work, and thrive in our 14-county service area in South Central Wisconsin.  

Myth #4: “Goodwill gets everything for free, then keeps all the money.” 

The Truth: 92% of all dollars and donations collected are used to support our Goodwill mission programs to help needy individuals thrive. This is higher than many other similar nonprofits with higher administrative costs. 

Myth #5: “Goodwill gets all items donated for free, and in turn charges prices too high for those in need to afford.” 

The Truth: Donated goods are an important part of how Goodwill supports its mission. Proceeds from the sale of donated items help fund programs and services that support people in our community, including people with disabilities and others facing barriers to employment and stability. We work to price items thoughtfully in line with similar thrift and secondhand retail stores while also making the most of every donation so we can continue to provide vital services to our beneficiaries and other partners. When an item is purchased at Goodwill, that purchase helps keep donated goods in use (versus in landfills or shipped out of the area) while supporting programs that help people live, work, and thrive. 

Myth #6: “Employees get first choice of all the good stuff.” 

The Truth: Goodwill has strict policies against employees purchasing items before they reach the sales floor. There is a waiting period for employees to purchase any donated items, so our retail customers have an opportunity to purchase them first. 

Myth #7: “All the really good donations are pulled and sold online.” 

The Truth: Some donated items are selected for e-commerce because they may be a better fit for an online marketplace or reach a broader audience there. Regardless of where an item is sold, the proceeds help support Goodwill’s mission and the programs and services we provide to people in our local community. Every sale is another way a donated item can make a positive impact. 

Myth #8. “Goodwill doesn’t really help people—it just sells donated stuff.”

The Truth: The sale of donated goods directly funds our mission services. Our workforce programs help people build skills, find employment, and advance toward greater economic independence. The housing program Goodwill offers provides safe and stable housing in group homes or subsidized apartments for residents to gain independent living skills. In addition, we provide free tax preparation to individuals and families with low to moderate incomes. 

Myth #9: “If something doesn’t sell, Goodwill just throws it away.”

The Truth: Unsold merchandise moves through a number of additional responsible recycling channels, including our outlet, along with other reuse and recovery options. In 2025, we helped keep more than 18 million pounds of donated items out of local landfills. 

Myth #10: “Goodwill pays people with disabilities pennies per hour.“

The Truth: The mission of Goodwill is to provide work opportunities and training to people with disabilities and other employment barriers. At Goodwill of South Central Wisconsin, we pay employees nearly twice the minimum wage in the state of Wisconsin, and three times the federal minimum wage. 

Our Mission

Perhaps the biggest misconception of all is that many people simply don’t realize everything Goodwill does beyond the store. 

That sweater helps someone take the next step toward employment. 

That couch helps someone find a safe and stable home. 

That purchase helps fund services that build skills, confidence, and independence. 

Your donation doesn’t just give an item a second life. It can help create new possibilities for someone in your community. 

That is what I most want people to understand: when you donate or shop at Goodwill, you are doing more than recycling an old item. You are supporting programs and services that help provide someone with a life-changing opportunity. Every donation and every purchase has a purpose, and together, they help make a lasting difference in our community.