Habitat for Humanity GTA

About Habitat for Humanity GTA:

Habitat for Humanity Greater Toronto Area (HFH GTA) was created in 2014 after three previously independent Habitat affiliates merged: Habitat for Humanity Toronto (founded in 1988), Brampton-Caledon, and York Region. HFH GTA shares the common Habitat for Humanity mission of mobilizing volunteers and community partners to help working, low-income families break the cycle of poverty through affordable homeownership. The charity’s homeownership program is a hand up, not a handout; although partner families do not make a down payment on their Habitat home, they instead invest 500 hours of ‘sweat equity’ where they contribute to the building process. The charity also follows an affordable housing model, where families pay HFH GTA mortgages that are capped at 30% of total income. These payments enter a Habitat Fund that the charity uses to finance future builds.  

Habitat for Humanity GTA runs 10 ReStores, which the charity states are non-profit home improvement retail stores that help finance the charity’s builds. ReStores collects and sells donated, new and gently-used home building materials.

Results and Impact:

In F2016, HFH GTA housed 26 new families. The charity has 60 homes under construction as of 2017. Since 1988, the charity reports building 334 homes that have housed over 3,000 people. Major outcomes reported by the charity include a 76% increase in reported improvement in overall health by partner families, a 76% increase in reported improvements in children’s grades, and a 6% increase in family income each year a family lives in a Habitat home. Habitat for Humanity GTA also states that for every $1 invested in the charity’s builds, it produces $4 in social benefits. In F2016, HFH GTA reports that Toronto Foundation contributed to a social impact investment in support of the first 15 homes in the 140 Pinery Trail project.  

Financial Review:

Habitat for Humanity GTA is a medium-sized charity with total donations and special events fundraising of $4.4m in F2016.

Administrative costs are 8% of revenues and fundraising costs are 40% of donations and special events. Per dollar donated to the charity, $0.52 goes toward its programs, which falls outside of Ci’s reasonable range for overhead spending. However, net profits from ReStores could be applied to cover part of the overhead costs. In F2016, HFH GTA spent $2.7m in overhead (fundraising and admin/management costs) of which 75% could be covered by ReStore's net profits of $2.0m. This range has fluctuated between 90% and 62% since F2013. If the ReStore contribution is applied to overhead costs rather than new homes built, it would reduce the overhead cost on donations. HFH GTA's fundraising costs of 40% exceed the CRA Charities Directorate guidance of 35% using a standard measurement ratio of fundraising costs/fundraising revenues. F2016 was an unusually high year, deviating from HFH GTA's average fundraising costs of 30% since F2013, using the standard ratio.

Habitat for Humanity GTA’s interest-bearing debts of $19.3m exceed liquid assets. This shows as negative funding reserves. This is common for most Habitat for Humanity chapters across Canada that hold mortgages for first-time home owners.  

This profile is an update that is currently being reviewed by the charity. Comments and edits may be forthcoming.  Charity Intelligence discussed this profile with HFH GTA management in May 2019. From this conversation, additional comments and context have been added.

Updated on August 28, 2017 by Katie Khodawandi. Edited by Kate Bahen, June 3. 2019.