Habitat for Humanity of Sumner County TN

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1 Habitat for Humanity of Sumner County TN General Information Contact Information Nonprofit Habitat for Humanity of Sumner County TN Address 327 Sumner Hall Drive Gallatin, TN Phone (615) Fax Web Site Web Site Facebook Facebook At A Glance Year of Incorporation

2 Mission & Impact Statements Mission Seeking to put God's love into action, Habitat for Humanity of Sumner County brings people together to build homes, hope, and communities. Our goal is to provide decent, affordable, energy-efficient housing for all qualifying low-income families in Sumner County TN. Background Habitat for Humanity of Sumner County TN, an affiliate of Habitat for Humanity International, was chartered in The first Habitat home in Sumner County was completed in To date, four homeowners have paid off their mortgages in full. Since its incorporation, HHSC has built 57 new homes and completed four Critical Home Repairs. In 2018, HFHSC will build five new homes in Sumner County and move forward with an infrastructure project on donated property in Gallatin. In 2008, HHSC opened its first ReStore. The proceeds are used to help build and renovate more homes. In 2012, ground was broken for a new ReStore and HHSC Administrative Offices and the new facility was opened in April marks the fifth anniversary of the building. In 2016, the ReStore was named the Favorite ReStore by TN Habitat for Humanity as it grew in sales by 22% over Sales have continued to grow in 2016 and 2017 with ReStore funds covering 100% of the overhead of running Habitat for Humanity of Sumner County. Impact 2017 Accomplishments 1. We built four new homes and completed one critical home repair in We held our 'signature' event fundraiser, the Raise the Roof Luncheon, for the fourth year and increased our proceeds from sponsorship and ticket sales by 9% in Proceeds went towards construction of the Raise the Roof Build in Fall ' Our ReStore gross merchandise sales grew in 2017 by 15% over the previous year with two new record sales months. 4. A full-time Business Manager (replacing an Administrative Assistant) and a full-time Volunteer/Construction Site Coordinator were hired in We held our third-annual friend-raising event, Women Building the Community, as a kick-off to our annual Women Build. Attendance of community leaders and women in business increased by 20% over the previous year. 6. Organized and held a 5K Road Race in September in Hendersonville, TN to be held as an annual fundraising event supported by the Sumner Association of Realtors in the fall. A small profit was made in the first year to support the fall '17 builds. Goals for Complete five new home builds and two critical home repairs in Provide structure to our Home Repair Program, including hiring a Home Repair Manager (contract employee) to oversee these projects. 2. Complete the planning and begin development of the cul-de-sac infrastructure project. Apply for and receive at least $100,000 in grant funds for the infrastructure project. 3. Increase proceeds from our Women Building Community, Raise the Roof, and 5K Road Race events by at least 10%. 4. Increase ReStore net income by at least 5% over 2017 (we are probably close to a plateau in ReStore income, but hope to increase income through increased de-construction projects). 5. Secure at least three additional lots for new homes, including one in Gallatin. 2

3 Needs 1. Acquiring buildable lots. We will need to acquire at least three new lots (approximately $60,000) to continue building five new homes each year. 2.Acquiring funding for five new homes (approximately $450,000) and at least two home repairs ($20,000). 3. Complete planning stage and begin development of infrastructure project for cul de sac in next two years (estimated cost of project is $225,000). This project will provide up to 12 lots for new home builds. 5. Recruit at least one major donor to serve as title sponsor for fifth new home build. Other ways to donate, support, or volunteer Donations may be made by mailing a check, making a credit card donation on-line through our website, or making in-kind donations of materials and/or skilled labor to builds or donations of used items to our ReStore. Volunteers are needed to work on our builds and in our ReStore. We also have opportunities to volunteer by joining one of our committees: Homeowner Selection, Homeowner Nurture, Site Selection, Construction, Communications/PR, Fund-raising, Church Relations, Safety, and ReStore. Service Categories Primary Organization Category Housing, Shelter / Housing Development, Construction & Management Secondary Organization Category Community Improvement, Capacity Building / Community & Neighbourhood Development Tertiary Organization Category Human Services / Personal Social Services Areas of Service Areas Served TN - Sumner HFHSC serves those who have lived in Sumner County for at least six months. We also can build new homes for those qualifying applicants currently residing in Macon and Trousdale Counties, but currently working for at least one year in Sumner County. Board Chair Statement Habitat for Humanity of Sumner County had a very exciting year in Our organization completed our 57th new home build. We are on track to start the development of a twelve-lot dedicated Habitat for Humanity community in Gallatin, TN. We successfully completed four new builds as well as a home repair. Our ReStore operations generated sales in excess of $524,000. Habitat for Humanity successfully recruited and utilized over 1300 volunteers during the course of the year. Habitat for Humanity of Sumner County faces many of the same challenges as other Habitat affiliates throughout the region. Lots are becoming harder to locate and purchase. We have an established group of real estate agents that actively search and identify potential building sites. Retaining qualified drivers for our ReStore operations continues to be a top priority as the unemployment rate drops therefore creating higher demand for experienced drivers in the area. We are constantly evaluating compensation and benefits in order to achieve maximum employee retention. My passion for Habitat for Humanity centers around creating a new path for success for those individuals that we serve. We are not simply building a home. We are building a foundation that supports the families and permanently changes the direction of their lives. Having a home allows a person to have an asset that can be used to nurture and support others in times of need. Home ownership strengthens an individual or family and gives them the opportunity to achieve at greater levels than they may have ever imagined. 3

4 Brad Edwards, Board President CEO Statement Sumner County TN is an area of rapid population growth. Many new housing developments and apartment complexes have been built or are in the process of being built. However, with escalating rental rates real estate prices, more and more working low-income families are left out of the mix. As in many other areas of Tennessee, affordable housing opportunities in Sumner County continue to diminish. Rentals tend to require too high a percentage of a family's income to allow for quality of life and many families do not qualify for traditional mortgages. Habitat for Humanity of Sumner County is in the position of helping these families with the dream of owning a decent, affordable home. To families that qualify, we provide a zero percent interest mortgage for less than the appraised value of building the home. At the same time, many current homeowners on fixed incomes do not have the financial means to make needed repairs on their homes. Although we have completed about one home repair each of the last four years, in 2018, we organizing for the capacity to serve more families each year through our Home Repair Program. Our Home Repair Program is aimed at serving low-income senior, veteran, and disabled homeowners to address this issue. Our new home builds and home repairs are built with skilled and volunteer labor with most materials purchased at below market value. In addition, for each home we attempt to secure as much sponsorship support as possible to make the home affordable for the family. Unlike many non-profits, our partner families are totally invested in the project through providing 'sweat equity' and re-payment of the cost of the project at zero percent interest. Also, uniquely, because our ReStore profits cover all of the overhead expenses of running our affiliate, Habitat for Humanity of Sumner County can honestly tell our donors that 100% of their donation will go directly towards funding of the construction projects. Susan Johnson, Executive Director 4

5 Programs Programs New Home Builds Description To build decent, affordable houses for low-income families Goal: Five new home builds. Approximate Cost: $450,000 Budget 450,000 Category Population Served Short Term Success Long term Success Program Success Monitored By Examples of Program Success Housing, General/Other Affordable Housing Poor,Economically Disadvantaged,Indigent, Families, US By the end of one year of homeownership, partner families will have an increase in discretionary income over the prior year. In addition, family members will report better health and children will report improved grades through an annual survey. On the average, the next generation of current partner families will increase at least 10% in average median income over the current generation of homeowners. Families will be less cost-burdened by their housing costs and will have additional expendable income available for needs (food, clothing, transportation, education, etc.). With each mortgage payment, out homeowners will accrue more equity and have opportunities to grow in their financial stability. Phone surveys are conducted with homeowners six months and one year after closing for owners to self-report changes and/or concerns since occupancy. Mentors assigned to each partner family when selected will track the successes and failures experienced by the homeowner through the first year of home ownership. Parents have commonly reported that children with asthma have improved symptoms. Parents also commonly report less anxiety for themselves and their children since acquiring a permanent affordable place to live. Parents have reported children's improved grades after moving into their Habitat homes. 5

6 Critical Home Repair Description Critical Home Repair (providing essential repairs such as handicapped accessibility for low-income homeowners) Goal for 2018: Two home repairs Budget: Approximately cost per project = $10,000 Budget Category Population Served Short Term Success Long term Success Program Success Monitored By Examples of Program Success Housing, General/Other Home Repair Programs Aging, Elderly, Senior Citizens, Elderly and/or Disabled, Other Named Groups The majority of families we serve with home repairs will self-report improved health conditions and home maintenance conditions after our projects are completed. Decrease in the number of low-income seniors, veterans, and disabled persons who own properties in need of critical repairs. Each home repair will provide a safer, healthier environment for the homeowner's family. Homeowners are surveyed at the completion of the project and through phone calls six months and one year after projects are completed. One family reported that allergy symptoms of a disabled son drastically decreased after home repairs were completed, including interior cleaning and replacement of flooring in the home. Another family reported that the quadriplegic father's spirits improved after flooring and ramp projects were completed in their home. 6

7 Site Selection & Infrastructure Development Description Purchase properties for future development. Develop a three-acre donated property for up to 12 building lots. Goals for 2018: (1) Acquire at least three building lots through purchase or donation. (2) Complete the planning phase and begin development with clearing of land and installation of utilities for a 3-acre infrastructure project. Approximate Cost: $160,000 Budget Category Population Served Short Term Success Long term Success Housing, General/Other Housing Development, Construction & Management Families, Poor,Economically Disadvantaged,Indigent, General/Unspecified During 2018, at the end of each quarter, at least one buildable lot has been acquired. During 2018, plans for the infrastructure project will be approved by the City of Gallatin, the survey will be completed, the property will be cleared and graded, and utility installation will have begun. Significant grant funding for the 2018 infrastructure budget will be acquired. By the end of 2018, at least three new build-able lots have been acquired for future builds. By the end of 2019, the infrastructure project will be complete and will provide at least 12 additional lots for new home builds. Program Success Monitored By We have been able to acquire the needed properties in We have begun the installation of utilities for the infrastructure project. Examples of Program Success In January '18, the City of Gallatin approved a zoning change for the infrastructure development that will provide access to more buildable lots. CEO Comments One of our biggest challenges is finding affordable lots for future building projects. Real estate in Sumner County is extremely limited with few affordable or appropriate options for building Habitat homes. Because of a lack of available lots, we need to move forward with plans to complete the infrastructure for a property that would allow for the building of up to 12 new homes. Funding through grants and community support must be acquired to support other fund-raised dollars for the project. Another challenge is lack of personnel to oversee our growth. We hired two new staff members and replaced our construction manager (contract employee) in These new staff positions, Business Manager and Volunteer and Construction Site Supervisor, are allowing the Executive Director more time for development activities, including recruitment of more members of the Fundraising Committee. The addition of a Home Repair Manager in 2018 will further improve the organization of construction activities and help us more efficiently serve more families through this program each year. Another difficult task is, in light of increasing numbers of low-income families with cost-burdened housing, providing comparable services with escalating construction costs. We are attempting to meet this challenge by increasing our fundraising opportunities through events and grants and identifying more in-kind gifts of skilled labor and materials for the builds and repairs. 7

8 Governance Board Chair Board Chair Brad Edwards Company Affiliation F&M Bank Term June 2016 to June Board Members Name Affiliation Status Karen Celsor Reliant Bank Voting Rev. William Douglas First Baptist Church, Gallatin Voting Brad Edwards Regions Bank Voting John Espey Allison French Volunteer State Community College Vanderbilt University Medical Center Voting Voting Sherree Hall Crowder TN Dept of Transportation Voting Dr. Tom Hughes Retired Professor Voting Dr. Derrick Jackson Pastor, First Baptist Church, Gallatin Voting Dana Kemp Smith-Sholar-Milliken Voting Bruce Marston Retired Voting Rick Morrison Axiom Impressions Voting Janet Rambo Community Volunteer Voting Toni Speer Retired Voting Johnny Wilmore Retired Voting Dr. Kenny Yarbrough Volunteer State Community College Voting Board Demographics - Ethnicity African American/Black 4 Asian American/Pacific Islander 0 Caucasian 10 Hispanic/Latino 0 Native American/American Indian 1 Other 0 0 Board Demographics - Gender Male 9 Female 6 Unspecified 0 8

9 Governance Board Term Lengths 2 Board Term Limits 3 Board Meeting Attendance % 80% Written Board Selection Criteria? Written Conflict of Interest Policy? No Yes Percentage Making Monetary Contributions 87% Percentage Making In-Kind Contributions 75% Constituency Includes Client Representation No Number of Full Board Meetings Annually 10 Board CoChair Board CoChair Dana Kemp Company Affiliation Smith-Sholar-Milliken Term June 2016 to June danak@smithsholar.com Standing Committees Communications / Promotion / Publicity / Public Relations Development / Fund Development / Fund Raising / Grant Writing / Major Gifts Executive Finance Human Resources / Personnel Community Outreach / Community Relations Building Nominating Risk Management Provisions Accident and Injury Coverage Automobile Insurance Builders Risk Commercial General Liability and D and O and Umbrella or Excess and Automobile and Professional General Property Coverage Risk Management Provisions Umbrella or Excess Insurance Workers Compensation and Employers' Liability CEO Comments 9

10 We are constantly look to grow our committee membership and the leadership for each committee. The challenge is for each committee to take ownership of its goals and require less initiative by the Executive Director. We have scheduled an annual Strategic Planning Retreat for our Board of Directors. The purposes of this year's retreat are to educate the Board Members on Resource Development and put together a rough draft of a new Three-Year Strategic Plan ( ). The Board Retreat is in February and the Strategic Plan should be adopted in March. We have a fairly engaged Board and have strengthened the leadership and knowledge base over the past year. For next year's Board, we need to recruit new members with expertise in development, insurance and construction. Operating in a large county with many municipalities, we also struggle to have diverse representation on the Board to serve all constituents. Over the last year, we have increased our minority representation, but need to find additional members representing other parts of the county. 10

11 Management Executive Director/CEO Executive Director Term Start Nov Ms. Susan Johnson Experience Served 33 years as college basketball coach and 18 years as college professor; as a coach, served six years on the national board of the Women's Basketball Coaching Association, as well as a board member and officer of several state-wide coaching/athletic associations. Began with Habitat for Humanity as a volunteer in 1985; joined local Fund-raising Committee in 1993; joined local Board of Directors in 2003 and served for 8 years as Fund-raising and Volunteer Committee Chairs; worked part-time for local affiliate in 2012 as Community Liaison (Fund-raising & Volunteer Coordination) before beginning full-time position as Executive Director of Habitat for Humanity of Sumner County in November Former CEOs Name Term James Crowley Jan Dec 0 Robert Dyer Jan Dec 0 Staff Full Time Staff 8 Part Time Staff 3 Volunteers 4500 Contractors 1 Retention Rate 88% Plans & Policies Does the organization have a documented Fundraising Plan? Yes Does the organization have an approved Strategic Plan? Yes Number of years Strategic Plan Considers 3 When was Strategic Plan adopted? Mar 2015 In case of a change in leadership, is a Management Succession plan in place? Under Development Does the organization have a Policies and Procedures Plan? Under Development Does the organization have a Nondiscrimination Policy? Yes 11

12 Does the organization have a Whistle Blower Policy? No Does the organization have a Document Destruction Policy? Yes Affiliations Affiliation Affiliate/Chapter of National Organization (i.e. Girl Scouts of the USA, American Red Cross, etc.) - Affiliate/chapter Year 1994 Habitat for Humanity International 1994 Awards Awards Award/Recognition Organization Year Favorite ReStore Tennessee Habitat for Humanity 2016 ReStore Volunteer of the Year Tennessee Habitat for Humanity 2016 Non-profit of the Year--2nd Place Hendersonville Chamber of Commerce 2016 Senior Staff Leath Ann Pomeroy Title Business Manager Experience/Biography Edgar Dozier Title Assistant Manager, ReStore Experience/Biography Paul Sears Title ReStore General Manager Experience/Biography Sheila Smith has worked in HR for five years, for real estate closing attorneys for eight years, and in her current position with HHSC for eight years. Ed Dozier is retired military and has worked for HHSC in his current position for six years. Paul Sears has worked for HHSC since April 2015 and previously worked in management with BellSouth, Retail Division. CEO Comments We are in a growth phase and are trying to balance finances with needs for additional personnel. Our most difficult positions to maintain are our hourly employee positions (ReStore). Our ReStore General Manager has developed a plan to recruit from pools of employees that tend to work second jobs and offer them flexible work 12

13 schedules. As we grow the affiliate, we are spread very thin. We have added a new full-time position of Volunteer/Construction Site Coordinator and added responsibilities to a newly titled Business Manager Position. We have also hired a new Construction Manager (contract employee) who has more time to give to the job than the previous contractor. In 2018, we plan to hire a Home Repair Manager (contract employee) to oversee additional home repair projects. 13

14 Financials Fiscal Year Fiscal Year Start July Fiscal Year End June Projected Revenue $1,262, Projected Expenses $1,120, Endowment Value $0.00 Endowment Spending Percentage (if selected) 0% Detailed Financials Revenue and Expenses Fiscal Year Total Revenue $1,691,092 $983,191 $1,304,014 Total Expenses $1,626,064 $722,543 $1,165,246 Revenue Sources Fiscal Year Foundation and Corporation $10,500 $0 $0 Contributions Government Contributions $20,848 $70,330 $91,356 Federal $0 $0 $0 State $0 $0 $0 Local $0 $0 $0 Unspecified $20,848 $70,330 $91,356 Individual Contributions $99,456 $89,863 $71,212 Indirect Public Support $0 $0 $0 Earned Revenue $1,033,516 $334,788 $777,355 Investment Income, Net of Losses $23 $14 $28 Membership Dues $0 $0 $0 Special Events $0 $0 $28,914 Revenue In-Kind $537,249 $488,196 $335,149 Other $0 $0 $0 14

15 Expense Allocation Fiscal Year Program Expense $1,552,852 $666,737 $1,106,936 Administration Expense $54,826 $39,986 $42,690 Fundraising Expense $18,386 $15,820 $15,620 Payments to Affiliates -- $0 $0 Total Revenue/Total Expenses Program Expense/Total Expenses 95% 92% 95% Fundraising Expense/Contributed Revenue 14% 10% 8% Assets and Liabilities Fiscal Year Total Assets $2,798,232 $2,753,966 $2,467,115 Current Assets $1,755,738 $1,700,856 $1,539,483 Long-Term Liabilities $315,365 $315,070 $360,468 Current Liabilities $825,931 $846,988 $775,387 Total Net Assets $1,656,936 $1,591,908 $1,331,260 Short Term Solvency Fiscal Year Current Ratio: Current Assets/Current Liabilities Long Term Solvency Fiscal Year Long-Term Liabilities/Total Assets 11% 11% 15% Top Funding Sources Fiscal Year Top Funding Source & Dollar Amount Program Revenue $1,033,516 Noncash Contributions $488,196 Program Revenue $777,355 Second Highest Funding Source & Dollar Amount Third Highest Funding Source & Dollar Amount Noncash Contributions $537,249 Contributions, Gifts, and Grants $99,456 Program Revenue $334,788 Contributions, Gifts and Grants $89,863 Noncash Contributions $335,149 Government Grants $91,356 Capital Campaign Is the organization currently conducting a Capital Campaign for an endowment or the purchase of a major asset? No Campaign Purpose The purpose of the Capital Campaign, entitled "The Pafford Place Project", is to provide approximately 50% of the revenue required for the infrastructure (development; utilities; road & sidewalks) for a cul-de-sac providing up to 12 lots for new home builds. Capital Campaign Goal $0.00 Campaign Start and End Dates July 2018 to Dec 2019 Capital Campaign Anticipated in Next 5 Years? Yes State Charitable Solicitations Permit TN Charitable Solicitations Registration Yes - Expires Dec

16 Organization Comments We have just completed our third full fiscal year with merged financials for the Habitat for Humanity affiliate and the ReStore. We also completed our third audit of a three-year contract with our current auditing firm. Our 2017audit was free and clear of any accounting issues. We continue to have discrepancies in budget vs. audited amounts because our assets, homeowner mortgage payments and some of our grant income on the revenues side and construction expenses on the expenses side have been excluded in budgets but included in audits. We saw some improvement in these discrepancies in 2017 and continue to work on these issues in Our Business Manager has been with us since January 2017 and has worked with the accountant and treasurer to streamline our accounts payable/receivable to more closely match the audited figures. GivingMatters.com Financial Comments Financials taken from the prepared by Davis, Brown & Company, PLLC Audit prepared by Brown and MaGuire, CPAs, PLLC. Comments provided by Nicole Rose 02/16/2018. Created Copyright 2018 The Community Foundation of Middle Tennessee 16