More Than a Donation: Inside the Knauss School’s Consulting Partnership with Goodwill

For many, the name 'Goodwill' evokes a specific set of memories: the annual experience of spring cleaning, the sight of bagged-up belongings stacked in the trunk and the familiar motion of waiting in the donation drop-off line. To most, Goodwill of San Diego is a familiar network of donation centers and thrift stores. But step inside their 90,000-square-foot distribution center in Otay Mesa, and a different reality emerges: a well-oiled, reverse-logistics engine and a trailblazer of the circular economy. 

This massive operation provides the perfect "real-world lab" for students at the Knauss School of Business. Through a social impact consulting partnership, led by Adjunct Professor Karen Henken, MBA students aren't just volunteering; they are serving as professional consultants to tackle high-stakes business challenges. By bridging the gap between classroom theory and community impact, this partnership offers students a career-defining insight: that business strategy is the most powerful tool for driving sustainable social change.

The Start of a Good Thing 

The social impact consulting class, an elective course offered to graduate students, was taken on a few years ago by Karen Henken who made the connection to Goodwill and began this now-years-long partnership. 

“I was introduced to Jackie Brown, the VP of Retail for Goodwill,” Henken recalled. “I arranged a site visit to the Goodwill Outlet Center in San Ysidro and I was blown away. I’d never seen the Goodwill facilities at all, I just drop stuff off for donations, right? And I saw these massive warehouses, they're the size of football fields.”

It was at that moment she decided to start bringing classes there on site visits, where her students were equally “dazzled”.  

Just before the summer of 2023, Henken leaned into her growing relationship with Brown and asked if they were open to a consulting project from her MBA students. The Goodwill representative eagerly agreed. Three years later, Knauss MBA students have partnered with Goodwill on a wide range of different projects, from guiding regional expansions to navigating the competitive rise of digital reselling.

Community-Minded Consulting 

The first project that Knauss students completed with the company was consulting on an expansion to a new county, using primary research from locals in the area. “Goodwill asked us to help them evaluate an opportunity; risks and rewards to expand into Imperial County, which is a very different demographic than San Diego County,” Henken explained. “They weren't sure if there was an appetite for shopping, if there were opportunities for donations, if there was interest in workforce development.” 

With that in mind, the students got to work gathering information. “My students turned over every corner of Imperial County,” noted Henken. The students ended up building a relationship with an agricultural family in the area, who mentioned that they owned an empty building for sale in downtown El Centro. “And that became the building that turned into Goodwill’s El Centro and Imperial County launch. Goodwill just bought that building.” 

For Darlene Cossio, director of marketing and communications for Goodwill, the students’ impact is clear: “Many key organizational decisions were informed by the students’ analysis and recommendations.”

After such a successful first consulting project, Goodwill and Henken decided to continue the project each year with a different issue they were currently facing. Seeing donations decline due to online reselling platforms like Poshmark, ThredUp and Facebook Marketplace, the next project was for the students to research the competitive landscape and strategize how to create a different story around Goodwill to ensure that donors understood what the product does, because Goodwill’s biggest challenge is “that people don't know what they do.”

“They do not have grants or donations other than the product received,” noted Henken. “The vast majority of people don't even realize it's a nonprofit, they think it's a for-profit business.” 

Not only did the students learn the business model of Goodwill, but how it felt being a part of a truly mission-driven organization. “It gave us the opportunity to directly apply what we were learning in class to real clients and the meaningful challenges they were experiencing,” recalled alumna Gianna Sbarbaro ’25 (MBA). “Our team ultimately chose to continue collaborating through the spring semester on an additional project focused on social media strategy, primarily because we were so invested in the organization’s mission.” 

The third and most recent project was to create a marketing strategy around what drives the younger generation to choose thrifting by asking the questions “how does Goodwill tell its sustainability story?” and “does it matter to consumers?”. The end goal was to help Goodwill build awareness and garner more sustained donations by telling their sustainability story. “It is at the heart of how they operate as a leader in sustainability and the circular economy,” noted Henken.

The Blueprint for Community Partnerships 

At the end of each project the students submit a 40-page report and present their findings to the executive team. “It's not just, ‘Oh, here's some ideas.’ It's backed by data, it's backed by their own primary research,” Henken stated. The course uses a “rigorous framework” initially teaching students how to conduct their own research, then teaching them the ins and outs of consulting. 

“Working on the marketing strategy project for Goodwill was the most challenging and rewarding experience I have had the chance to be a part of since my time at Knauss,” stated MBA student, Antonio Flores ’26. Alumna Jennifer Hermance ’25 (MBA), echoed his statement: “My experience deepened the importance of aligning mission, messaging, and strategy to drive both impact and results. Since graduating, I’ve applied that mindset.”

And as for Goodwill, “It’s not easy to host a group of students and be as transparent as they are. Tony and Jackie and Darlene, the whole team—they really lean into it. They treat the students like professional consultants, which I think is why the students rise to the occasion and produce such great work,” said Henken. 

But it’s been a “win-win” for both parties involved. For Goodwill, they get fresh eyes on their challenges and the important perspective of Gen Z and millennials— which is a demographic they're really trying to understand better as donors and as customers.

“Our partnership with the University of San Diego, guided by Professor Karen Henken, has been an exceptional experience,” said Jackie Brown. “Students consistently deliver comprehensive research and highly professional recommendations, demonstrating impressive depth, insight, and commitment.” 

As this year wraps up and Henken plans for the future, what does she hope students take away?, “My hope is— and I think it's been realized— that they see that they can use their business skills for good. That you don't have to choose between having a successful business career and making a difference in the world. You can do both, and often the most effective way to make a difference is through a well-run, sustainable business model.”

 

— Jessica Applonie