Habitat for Humanity Niagara
STAR RATINGCi's Star Rating is calculated based on the following independent metrics: |
✔+
FINANCIAL TRANSPARENCY
Audited financial statements for current and previous years available on the charity’s website.
B
RESULTS REPORTING
Grade based on the charity's public reporting of the work it does and the results it achieves.
Low
DEMONSTRATED IMPACT
The demonstrated impact per dollar Ci calculates from available program information.
NEED FOR FUNDING
Charity's cash and investments (funding reserves) relative to how much it spends on programs in most recent year.
61%
CENTS TO THE CAUSE
For a dollar donated, after overhead costs of fundraising and admin/management (excluding surplus) 61 cents are available for programs.
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OVERVIEW
About Habitat for Humanity Niagara:
Habitat for Humanity Niagara is a 2-star charity with Low demonstrated impact. The charity has a B Results Reporting grade, which is average. For every dollar donated to the charity, 61 cents are available to go to the cause, which is outside Ci's reasonable range.
Founded in 1993, Habitat for Humanity Niagara (Habitat Niagara) aims to provide affordable housing to low-income families across Niagara. It is one of the 46 affiliates of Habitat for Humanity Canada and a member of the Niagara Poverty Reduction Network. Along with 1,400 Habitat affiliates around the globe, Habitat Niagara works toward a world where everyone has a safe and stable place to live.
Habitat Niagara’s main program is homeownership, but it does not report how much it spends on building homes each year. Based on its financial statements, Ci calculated Habitat Niagara’s total program spending as $4.1m in 2023.
Habitat for Humanity Niagara’s homeownership program helps low-income families buy affordable homes. The charity raises funds for land and materials to build new houses. Habitat Niagara sells its homes to eligible families with no down payment required, financed through interest-free mortgages paid over 20 years. Habitat Niagara also requires each family to contribute 500 hours of “sweat equity” by volunteering to build homes or working at Habitat ReStores. After receiving mortgage payments, the charity reinvests the money into future building projects. Since its founding in 1993, Habitat Niagara has built 73 homes for 79 families, including 272 children.
In 2023, Habitat Niagara built three homes in Thorold. The charity also bought back one home from a former Habitat family. Four families became homeowners in 2023.
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Results and Impact
In 2015, Boston Consulting Group completed an impact analysis of Habitat for Humanity Canada’s affiliates. The research showed that for every $1 donated, there are $4 in social benefits returned to the community. Each Habitat family also receives measurable benefits of $175k through a Habitat home. This number is the combination of expected wealth generated from the first two generations of a Habitat home. In addition to the social return on investment, families reported higher levels of well-being and improved social engagement.
While Ci highlights these key results, they may not be a complete representation of Habitat for Humanity Niagara’s results and impact.
Charity Intelligence has given Habitat Niagara a Low impact rating based on its demonstrated impact per dollar spent.
Impact Rating: Low
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Finances
In 2023, Habitat for Humanity Niagara changed its auditor from Grant Thorton to Baker Tilly.
Habitat for Humanity Niagara received $405k in donations in 2023. Ci calculates that HFHN spent $4.1m on its programs, which is 87% of revenue.
Administrative costs are 9% of revenue and fundraising costs are 30% of donations. For every dollar donated to the charity, 61 cents are available to go to the cause, which is outside Ci’s reasonable range.
Habitat Niagara’s reserve funds are negative as its interest-bearing debts outweigh its cash and investments. This is common for Habitat for Humanity chapters across Canada, which hold mortgages for first-time homeowners. Excluding its debts, the charity’s reserves could cover 38% or five months of its annual program costs.
Charity Intelligence has sent this update to Habitat for Humanity Niagara for review. Changes and edits may be forthcoming.
Updated on June 26, 2024 by Liam Chapleau
Financial Review
Fiscal year ending December
|
2023 | 2022 | 2021 |
|---|---|---|---|
| Administrative costs as % of revenues | 8.6% | 10.7% | 10.7% |
| Fundraising costs as % of donations | 29.9% | 26.4% | 32.8% |
| Total overhead spending | 38.5% | 37.0% | 43.5% |
| Program cost coverage (%) | (10.5%) | (6.1%) | (11.8%) |
Summary Financial StatementsAll figures in $s |
2023 | 2022 | 2021 |
|---|---|---|---|
| Donations | 404,738 | 402,502 | 202,163 |
| Goods in kind | 227,015 | 332,663 | 85,051 |
| Government funding | 0 | 40,000 | 534,548 |
| Fees for service | 762,386 | 1,265,451 | 673,156 |
| Business activities (net) | 2,953,983 | 2,925,880 | 2,172,473 |
| Investment income | 14,528 | 0 | 0 |
| Other income | 305,358 | 518,139 | 249,041 |
| Total revenues | 4,668,008 | 5,484,635 | 3,916,432 |
| Program costs | 4,066,202 | 3,401,876 | 3,049,591 |
| Administrative costs | 401,772 | 584,632 | 419,300 |
| Fundraising costs | 121,031 | 106,056 | 66,342 |
| Other costs | 205,609 | 143,034 | 106,832 |
| Total spending | 4,794,614 | 4,235,598 | 3,642,065 |
| Cash flow from operations | (126,606) | 1,249,037 | 274,367 |
| Capital spending | 16,873 | 32,140 | 141,268 |
| Funding reserves | (424,928) | (208,614) | (360,427) |
Note: 1: GROSS MARGIN ON HOME SALES: Ci excluded the gross margin on home sales from revenue, affecting revenue by $878k in 2023, $488k in 2022, and $337k in 2021. 2: DEFERRED REVENUE: Ci included deferred revenue within other revenue, in the amount of ($20k) in 2023, ($nil) in 2022, and ($88k) in 2021. 3: INTEREST INCOME ON MORTGAGES RECEIVABLE: Ci included interest income on mortgage receivable, affecting revenue by $339k in 2023, $519k in 2022, and ($nil) in 2021. 4: MORTGAGE PAYMENTS RECEIVED: Ci included mortgage payments received from the charity’s cash flow statement, affecting revenue by $424k in 2023, $747k in 2022, and $673 in 2021. 5: CHANGE IN DUE/FROM HABITAT CANADA: Ci adjusted for the change in amounts due and from Habitat Canada, which affected revenue by $42k in 2023, $20k in 2022, and ($41k) in 2021; and expenses by ($37k) in 2023, $21k in 2022, and $19k in 2021.
Salary Information
$350k + |
0 |
$300k - $350k |
0 |
$250k - $300k |
0 |
$200k - $250k |
0 |
$160k - $200k |
0 |
$120k - $160k |
0 |
$80k - $120k |
3 |
$40k - $80k |
7 |
< $40k |
0 |
Information from most recent CRA Charities Directorate filings for F2022
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Comments & Contact
Comments added by the Charity:
Charity Contact
This email address is being protected from spambots. You need JavaScript enabled to view it. Tel: 905-685-7395