990: FY 2002 (pdf)

Annual Report: FY2001
Annual Report: FY2000
Annual Report: FY1999

Files provided here are in PDF format, which can be read or printed with Adobe's free Acrobat Reader software.

Note: Local Habitat for Humanity affiliates are separate nonprofit organizations, independent of HFHI, and therefore are not included in HFHI's form 990. For further information, see the financial statement file above.

Through its commitment to good stewardship, Habitat for Humanity International endeavors to use wisely all funds entrusted to it for its work of building houses with people in need of simple, decent, affordable shelter.

Support and Revenue

Habitat for Humanity International is a tax-exempt 501(c)(3) nonprofit corporation supported by those who believe in its work. This support comes in the form of contributions from individuals (cash, stock gifts, estate gifts and an annuity program), corporations (both cash and donated assets and services), foundations and other organizations. Habitat for Humanity participates in select government initiatives such as the Self-Help Homeownership Opportunity Program and the AmeriCorps program in the United States. Government assistance is welcomed to develop infrastructure and set the stage for house building.

Due to the economic downturn and financial uncertainties affected by the Sept. 11, 2001, tragedy, gathering financial support has become more challenging. Stock gifts, in particular, have been affected, as depreciating stock values have left donors with little incentive to give. The cancellation of a direct marketing solicitation scheduled for soon after Sept. 11, 2001, was also a factor in the amount of support and revenue for FY02.

Despite challenges, unrestricted income was up in FY02 by $10.9 million. HFHI ended FY02 with total revenue of $162.1 million—down 5 percent from FY01. That total includes $120.4 million in contributions; $21.9 million in government grants; $9.4 million in other income; and $10.4 million in donations in-kind.

Expense

Habitat for Humanity International classifies expense in three primary categories: program expense; fund-raising expense; and management and general expense. Program expense is further divided into three subcategories: U.S. affiliates; international affiliates; and public awareness and education. Total expense amounted to $159.6 million—down $4.4 million (3 percent) from FY01. During FY02, HFHI took steps to reduce expense, including travel restrictions, elimination of positions and other cost-cutting measures.

Program Expense

In FY02, Habitat for Humanity International spent a total of $115.3 million on program expense, representing 72 percent of total expense. These funds were used for direct cash and gift-in-kind transfers to affiliates and national organizations around the world for house construction and other expenses. HFHI's program expense in FY02 included costs for programs that directly benefit affiliates and national organizations such as Campus Chapters and Youth Programs, prison partnerships, disaster response, training seminars and information materials. Additionally program expense includes the cost of monitoring and evaluating the work of affiliates and national organizations, along with providing technical assistance and other program support.

Included in international transfer expense is $8.8 million in tithe funds collected from U.S. affiliates and used to support the work of affiliates in other countries. Tithing on locally raised income is a commitment set forth in covenants signed by all Habitat for Humanity affiliates. Affiliates outside the United States also tithed to support Habitat for Humanity's work in other countries, often making direct contributions that are not reflected in these financial statements.

Habitat for Humanity International's program expense also includes costs associated with HFHI's goal of making decent shelter a matter of conscience and action. Public awareness and education expense includes special events like the Jimmy Carter Work Project; Global Village work trips; our Web site, videos and Habitat World magazine; and other costs associated with responding to inquiries from the public and media.

Fund-raising Expense

In FY02, fund-raising expense totaled $39.3 million, representing 25 percent of total expense. Major fund-raising programs include direct mail and telemarketing campaigns; direct contact with major donors, foundations and corporations; and support for the More Than Houses: Rebuilding Our Communities campaign. FY02 saw an increased emphasis on targeted proposals to major donors. Internet fund raising was stepped up, and this year fund raising comprised a major part of Habitat for Humanity's work in Western Europe.

Many of HFHI's fund-raising appeals result in donations made directly to U.S. affiliates. In such cases, HFHI bears the fund-raising expense but does not reflect the resulting donations as revenue.

Management and General Expense

For FY02, management and general expense totaled $4.9 million, representing 3 percent of total expense. This includes costs of staffing (other than program and fund-raising staff), supplies, utilities, building maintenance and other costs incurred in the day-to-day operations of HFHI.

Habitat for Humanity’s Unaudited Combined Financials

The audited financial statements of Habitat for Humanity International reflect only part of the story of Habitat for Humanity’s scope of work around the world. As autonomous nonprofit organizations, Habitat for Humanity affiliates and national organizations keep their own records of revenues and expenditures; those figures are not included in the financial statements of Habitat for Humanity International.

To better demonstrate the magnitude of the movement, HFHI annually compiles combined financial statements for Habitat for Humanity in total. This unaudited report includes financial information from many of the largest U.S. affiliates along with estimates for smaller U.S. affiliates and international efforts to produce organizationwide totals.

For the fiscal year that ended June 30, 2001, we estimate the entire Habitat for Humanity movement grossed about $689.7 million in revenue: $394.0 million in cash contributions; $78.8 million in gifts in-kind; $168.2 million in transfers to homeowners; and $48.7 million in other support. Overall, Habitat for Humanity's estimated expense ratios in FY01 were 80 percent program, 10 percent fund raising and 10 percent management and general expense.

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Affiliate House Numbers | Good Stewardship | Audited Financial Statements



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