global impact
Annual Report FY2018
Measuring Habitat's effect: individuals served around the world and financial statements
A commitment to global stewardship
Thanks to the generous support of our donors and partners, fiscal year 2018 was one of the strongest in Habitat for Humanity International’s history. This success allows Habitat to serve more families and communities around the world as we work toward our vision of a world where everyone has a decent place to live.
Overall revenue was US$350 million, a 37 percent overall increase from the prior year. In addition, we received US$34.7 million in grant advances, which will be recognized as revenue in future periods as eligible expenses are incurred. This increase in revenue was driven, in large part, from an extraordinary donor response to our Habitat Hammers Back initiative to repair and restore communities impacted by hurricanes Harvey, Irma and Maria. We also continued to grow our programs in the areas of housing microfinance and other lending solutions, as well as exploring additional new technologies available to build more sustainable and less expensive housing solutions for the families with whom we partner.
On the expense side, we remain committed stewards of the financial resources entrusted to us. Our programs accounted for 78 percent of our total expenses, as we were able to transfer over US$108 million in cash and donated product to our affiliates and national organizations around the world. Overall, expenses increased by 9 percent compared with the prior year. Significant funding received this year will continue to be used in the next few years to rebuild homes and infrastructure in the areas of Texas, Florida and Puerto Rico that were hardest hit by the devastating hurricane season that was experienced in 2017.
These metrics put Habitat in a strong position to be able to continue to serve families and achieve our strategic plan. We will continue to grow and diversify the organization’s funding, expand and deepen the available ways we serve our target populations, and build reserves and capacity to weather economic changes. We thank you for your continued support of our mission.
— Michael E. Carscaddon, Executive Vice President, Administration and Chief Financial Officer, Habitat for Humanity International
where we built
Habitat for Humanity was active in more than 70 countries in FY2018.
FY2018 summary ofindividuals served
United States & Canada
| Individuals | |
|---|---|
| New & rehab construction 1 | 18,180 |
| Repairs 2 | 16,260 |
| Total | 34,440 |
Latin America & the Caribbean
| Individuals | |
|---|---|
| New & rehab construction | 31,270 |
| Incremental construction 3 | 28,255 |
| Repairs | 59,210 |
| Professional services 4 | 35,055 |
| Market development 5 | 1,931,415 |
| Total | 2,085,205 |
Europe, Middle East & Africa
| Individuals | |
|---|---|
| New & rehab construction | 11,720 |
| Incremental construction | 151,695 |
| Repairs | 25,220 |
| Professional services | 42,770 |
| Market development | 1,569,450 |
| Total | 1,800,855 |
Asia & the Pacific
| Individuals | |
|---|---|
| New & rehab construction | 26,145 |
| Incremental construction | 66,185 |
| Repairs | 16,160 |
| Professional services | 176,950 |
| Market development 6 | 4,511,350 |
| Total | 4,796,790 |
Notes and definitions
- 1. New and rehab construction
- New houses are 100 percent newly constructed and meet Habitat for Humanity quality standards and local building codes. Rehabs are restorations of houses that once met Habitat’s standards and local building codes but needed major, usually structural, work to bring them back to these standards and codes.
- 2. Repairs
- Minor restoration, such as patching roofs or walls or replacing materials in houses that still meet Habitat’s quality standards and local building codes.
- 3. Incremental construction
- An intervention that fully addresses one or more of the five Habitat for Humanity quality standards:
- adequate size
- durable construction
- secure land tenure rights
- access to adequate amounts of clean water
- proper sanitation
- 4. Professional services
- Preconstruction advice or design services provided directly by Habitat professionals to the household, for specific construction projects.
- 5. Market development
- Individuals served with better housing through the private sector as a result of a Habitat program.
Habitat for Humanity International FY2018consolidated finances
Habitat for Humanity International’s auditors have expressed an unqualified opinion on our June 30, 2018, consolidated financial statements. Those financial statements include associated notes that are essential to understanding the information presented herein.
The full set of statements and notes is available for download.
All figures presented are in thousands of dollars.
Consolidated statements of financial position
As of June 30Assets
| FY 2018 | FY 2017 | $ change | % change | |
|---|---|---|---|---|
| Cash and cash equivalents | $103,741 | $75,566 | $28,175 | 37% |
| Investments at fair value | $98,562 | $44,643 | $53,919 | 121% |
| Receivables | $159,812 | $133,087 | $26,725 | 20% |
| Other assets | $24,001 | $15,321 | $8,680 | 57% |
| Total assets | $386,116 | $268,617 | $117,499 | 44% |
Liabilities and net assets
| FY 2018 | FY 2017 | $ change | % change | |
|---|---|---|---|---|
| Liabilities | ||||
| Total liabilities | $155,492 | $115,851 | $39,641 | 34% |
| Net assets | ||||
| Unrestricted | $97,459 | $54,246 | $43,213 | 80% |
| Temporarily restricted | $130,595 | $96,054 | $34,541 | 36% |
| Permanently restricted | $2,570 | $2,466 | $104 | 4% |
| Total net assets | $230,624 | $152,766 | $77,858 | 51% |
| Total liabilities and net assets | $386,116 | $268,617 | $117,499 | 44% |
Consolidated statements of activities and changes in total net assets
Year ended June 30Revenues and gains
| FY 2018 | FY 2017 | $ change | % change | |
|---|---|---|---|---|
| Contributions | $240,152 | $157,280 | $82,872 | 53% |
| Donations in-kind | $54,690 | $36,991 | $17,699 | 48% |
| Government grants | $16,235 | $16,598 | $(363) | -2% |
| Other income, net | $38,858 | $44,825 | $(5,967) | -13% |
| Total revenues and gains | $349,935 | $255,694 | $94,241 | 37% |
Expenses
| FY 2018 | FY 2017 | $ change | % change | |
|---|---|---|---|---|
| Program services | ||||
| U.S. affiliates | $117,432 | $109,245 | $8,187 | 7% |
| International affiliates | $68,781 | $61,626 | $7,155 | 12% |
| Public awareness and education | $28,047 | $25,666 | $2,381 | 9% |
| Total program services | $214,260 | $196,537 | $17,723 | 9% |
| Supporting services | ||||
| Fundraising | $45,480 | $42,819 | $2,661 | 6% |
| Management and general | $12,966 | $12,502 | $464 | 4% |
| Total supporting services | $58,446 | $55,321 | $3,125 | 6% |
| Total expenses | $272,706 | $251,858 | $20,848 | 8% |
| Losses (recoveries) on contributions receivable | $90 | $(189) | $279 | -148% |
| Total expenses and losses on contributions receivable | $272,796 | $251,669 | $21,127 | 8% |
| Change in net assets | $77,139 | $4,025 | $73,114 | 1,816% |
Consolidated financial information
Source of funds
| Contributions | $240,152 | 68% |
| Government grants | $16,235 | 5% |
| Donated product | $54,690 | 16% |
| Other income | $38,858 | 11% |
| Total revenue | $349,935 |
Use of funds
| Program - U.S. affiliates | $117,432 | 43% |
| Program - international affiliates | $68,781 | 25% |
| Program - public awareness and advocacy | $28,047 | 10% |
| Total programs | $214,260 | 78% |
| Fundraising | $45,480 | 17% |
| Management and general | $12,966 | 5% |
| Total expenses | $272,706 |
Combined finances
The audited financial statements of Habitat for Humanity International reflect only part of Habitat’s work around the world. As autonomous nonprofit organizations, Habitat for Humanity affiliates and national organizations keep their own records of revenues and expenditures. To better demonstrate the magnitude of the movement, Habitat for Humanity International annually compiles combined (unaudited) financial amounts for Habitat for Humanity in total.
For the fiscal year that ended June 30, 2017, we estimated the total impact of the entire Habitat for Humanity mission was as follows:
FY2017 Source of funds
| Contributions and grants | $685 million | 35% |
| Donated product | $509 million | 26% |
| Sales of homes | $536 million | 27% |
| Other income | $225 million | 12% |
FY2017 Use of funds
| Program | $1.6 billion | 85% |
| Fundraising | $131 million | 7% |
| Management and general | $151 million | 8% |
