Habitat for Humanity Greater Toronto Area (HFH GTA) was created in 2014 when three Habitat affiliates merged: Habitat for Humanity Toronto (founded in 1988), Brampton-Caledon, and York Region. HFH GTA is one of 1,400 worldwide affiliates of Habitat for Humanity (HFH) that work towards creating a world where everyone has a safe and stable place to live. HFH was founded in 1976 in Georgia and has since spread to over 70 countries. HFH originally gained worldwide acclaim when former U.S. President Jimmy Carter and his wife Rosalynn supported HFH efforts through the Jimmy Carter Work Project in 1984.  

Habitat for Humanity’s homeownership program provides working low-income families with the opportunity to purchase an affordable home, usually with no down payment required. The charity offers a fixed, 20-year mortgage with zero interest. Mortgage payments are calculated annually to ensure that families are not paying more than 30% of household income. When mortgage payments are received, the charity reinvests this money into building more houses. To be able to buy a house, individuals must meet Habitat for Humanity’s requirements as well as contribute 500 hours of sweat equity helping build their own home and the homes of others.  

In F2018, HFH GTA completed the building of 28 new houses giving 142 people, including 88 children, a safe place to call home. At the end of F2018, the charity has 26 more homes under construction, including 13 townhouses in Brampton. This compares with 26 families in F2016 and 60 homes under construction. Since 1988, HFH GTA has built and provided close to 400 homes.  

HFH GTA operates 12 home improvement stores across the GTA called ReStores, adding two new ReStores over the last two years. ReStores sell new and used home furnishings, appliances, and renovation materials to the public at a reduced price. In F2018, ReStores collected more than 12,000 donated home items, and earned net profits of $1.7 million. 

Habitat for Humanity GTA is a medium-sized charity with donations totaling $4.8m in F2018. Administrative costs are 13% of revenues and fundraising costs are 36% of donations. HFH GTA’s overhead spending is 49%. For every dollar donated, 51 cents is available to cover its programs. This is outside Ci’s reasonable range for overhead spending.  

Habitat for Humanity GTA received $874k in donated goods and services to build homes in F2018. When these non-cash donations are included in donations, total donations and fundraising revenues rise to $5.7m and fundraising costs drop to 31%. Including donated goods, HFH GTA's overhead spending is 44%.

Donors' most-asked question is "how much of my donation goes to the cause?" For charities that internally allocate revenue streams to cover certain costs, answering this question is tricky. Donors may be confused by current statements about ReStore profits. On its website, HFH GTA states that ReStore profits help pay the cost of building homes. Ci estimates ReStore profits could have paid for more than three homes in F2018. HFH GTA also tells donors that ReStore profits cover the “vast majority” of fundraising and administrative costs. In 2018, ReStore profits are 54% of total fundraising and admin costs. Charity Intelligence asks donors to view the whole picture, all the costs, rather than one metric or internal cost re-allocations.

Habitat for Humanity GTA has interest-bearing debts of $21.6m, and a cash balance of $4.1m. This shows as a negative funding reserve of $17.5m. This is common for most Habitat for Humanity chapters across Canada that hold mortgages for first-time homeowners.   

In F2017, HFH GTA changed auditors. Figures for F2016 were restated. 

This profile is an update that is currently being reviewed by the charity. Habitat for Humanity GTA and Charity Intelligence have discussed this report. Comments and edits may be forthcoming.  

Updated on June 20, 2019 by Stefan Tetzlaff.