ASAP ASAP ASAP ASAP ASAP AIDS Shelter Alliance Proposal

Apocalypse Now For the second time in 700 years, a disease threatens to wipe out 25 million people. Unless the AIDS pandemic that has taken 22 million lives and left 13 million orphans is slowed, it will do what an atomic bomb could not: kill off an entire generation. That’s why a group of Harvard professors is promoting an aggressive plan to fight AIDS in poor nations. The Indianapolis Star, April 17, 2001

For the second time in 700 years, a disease threatens to wipe out 25 million people. Unless the AIDS pandemic that has taken 22 million lives and left 13 million orphans is slowed, it will do what an atomic bomb could not: kill off an entire generation. That’s why a group of Harvard professors is promoting an aggressive plan to fight AIDS in poor nations.

The Indianapolis Star, April 17, 2001

During the past 12 months Value of real estate sold in the US last year was over $1 trillion Mortgage financing, including refinancing, approached $2 trillion During the same period, the US government has authorized just $200 million to the Global AIDS Fund In 2001, the Global AIDS Fund has amassed $1.5 billion from all sources, well short of it’s goal of raising $7 to $10 billion During this time, 3 million people died of AIDS, and the number of orphans rose by the same figure 8,300 people have died everyday for the past year from AIDS

Value of real estate sold in the US last year was over $1 trillion

Mortgage financing, including refinancing, approached $2 trillion

During the same period, the US government has authorized just $200 million to the Global AIDS Fund

In 2001, the Global AIDS Fund has amassed $1.5 billion from all sources, well short of it’s goal of raising $7 to $10 billion

During this time, 3 million people died of AIDS, and the number of orphans rose by the same figure

8,300 people have died everyday for the past year from AIDS

A Generation of AIDS Orphans 26 million HIV positives in Africa = 65% of 40 million worldwide 16 million AIDS orphans, up from 13 m last year 40 million AIDS orphans predicted by 2010 1 orphan for every 150 people now on the planet 1 new orphan every 11 seconds Half of all orphans being raised by other children

26 million HIV positives in Africa = 65% of 40 million worldwide

16 million AIDS orphans, up from 13 m last year

40 million AIDS orphans predicted by 2010

1 orphan for every 150 people now on the planet

1 new orphan every 11 seconds

Half of all orphans being raised by other children

Translating the Scale of the Problem Currently 16 million AIDS orphans Twice the size of New York and Larger than Afghanistan 40 million AIDS orphans predicted by 2010 Roughly equivalent to the entire population of US public schools

Currently 16 million AIDS orphans

Twice the size of New York and

Larger than Afghanistan

40 million AIDS orphans predicted by 2010

Roughly equivalent to the entire population of US public schools

Africa Not Only Area at Risk India on trajectory to pass Africa by 20?? Get exact figures from conference at Harvard held during World AIDS Week, December 2001 UN estimates that China may have as many as 20 million HIV infections by 2010 New York Times, August 24, 2001

India on trajectory to pass Africa by 20??

Get exact figures from conference at Harvard held during World AIDS Week, December 2001

UN estimates that China may have as many as 20 million HIV infections by 2010

New York Times, August 24, 2001

Why Target Real Estate in US? $1 trillion dollars in annual sales from residential real estate Bigger than the soft drink industry On par with the telecommunications industry Half the size of the computer industry $110 billion fees annually / $60 billion in RE commissions Structural changes = $30 billion CONSUMER savings ASAP goal: redirect some of those savings to AIDS orphans

$1 trillion dollars in annual sales from residential real estate

Bigger than the soft drink industry

On par with the telecommunications industry

Half the size of the computer industry

$110 billion fees annually / $60 billion in RE commissions

Structural changes = $30 billion CONSUMER savings

ASAP goal: redirect some of those savings to AIDS orphans

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Why Real Estate in US? Part 2 #1 wealth building vehicle for the average American Value of residential estate = $11 trillion in 2001 Value rising to $25 trillion by 2010 -- Fannie Mae 10,000 times US’s fundraising goal of $2.5 billion annually 25,000 residential closings every day in the US 3 closings for each person who dies of AIDS every day Goal: ask parties to each closing to make donation to AIDS orphans

#1 wealth building vehicle for the average American

Value of residential estate = $11 trillion in 2001

Value rising to $25 trillion by 2010 -- Fannie Mae

10,000 times US’s fundraising goal of $2.5 billion annually

25,000 residential closings every day in the US

3 closings for each person who dies of AIDS every day

Goal: ask parties to each closing to make donation to AIDS orphans

Orphans as Real Estate Comps Century 21 marketing slogan @ 1999: “We sell a home every minute.” AIDS orphans are increasing more than 5 times that rate in Africa alone 3 million new orphans per year till 2010 1 new AIDS orphan for every 2 homes sold in US 3 new AIDS orphans for each new home built in US

Century 21 marketing slogan @ 1999: “We sell a home every minute.”

AIDS orphans are increasing more than 5 times that rate in Africa alone

3 million new orphans per year till 2010

1 new AIDS orphan for every 2 homes sold in US

3 new AIDS orphans for each new home built in US

Housing Needs: African Orphans Alone 80,000 boarding schools / orphanages will be needed over next 10 years 500 children per school Compare to number of apartments built in US with more than 500 units in past decade Compare to number of schools being built in the US in coming decade

80,000 boarding schools / orphanages will be needed over next 10 years

500 children per school

Compare to number of apartments built in US with more than 500 units in past decade

Compare to number of schools being built in the US in coming decade

Alternative Shelter Solutions Presently half of orphans being raise by other children Hybrid orphanage / boarding school Rev. Eugene Rivers, leading advocate Two non-institutionalized approaches Orphans placed with extended family Community-based alternatives (UN-Habitat)

Presently half of orphans being raise by other children

Hybrid orphanage / boarding school

Rev. Eugene Rivers, leading advocate

Two non-institutionalized approaches

Orphans placed with extended family

Community-based alternatives (UN-Habitat)

Cost of Alternative Solutions Annual cost per child $$$$ per child in orphanage/boarding school $$$$ per child in extended family $$$$ per child in community-based alternative Grand total needed annually

Annual cost per child

$$$$ per child in orphanage/boarding school

$$$$ per child in extended family

$$$$ per child in community-based alternative

Grand total needed annually

Something a little short of a miracle will be required to cope with the enormous battle ahead and for Sub Sahara Africa in particular, only a concerted international effort is going to have any kind of impact. Towards Earth Summit 2002 Social Briefing #1: HIV / AIDS Briefing Paper

Something a

little short of a miracle

will be required to cope with the enormous

battle ahead and for

Sub Sahara Africa in particular,

only a concerted international effort is

going to have any kind of impact.

Towards Earth Summit 2002

Social Briefing #1:

HIV / AIDS Briefing Paper

Call to Action Nothing short of an industry-wide response will be adequate Develop voluntarily campaign to encourage consumers to donate to global AIDS trust fund Funding goal for Global AIDS Fund: $7 to 10 billion annually, $2.5 -$3 Billion from US Only $200 million pledged by US in 2001 Multiple sources of real estate related revenue

Nothing short of an industry-wide response will be adequate

Develop voluntarily campaign to encourage consumers to donate to global AIDS trust fund

Funding goal for Global AIDS Fund: $7 to 10 billion annually, $2.5 -$3 Billion from US

Only $200 million pledged by US in 2001

Multiple sources of real estate related revenue

Potential RE Revenue Sources: 1st Tier Donate portion of e-commerce savings on real estate transactions Donate a portion of the sales price Donate portion of capital gains on sales of existing homes Donate portion of real-estate related inheritance 2nd & 3rd tier proposals in Appendix

Donate portion of e-commerce savings on real estate transactions

Donate a portion of the sales price

Donate portion of capital gains on sales of existing homes

Donate portion of real-estate related inheritance

2nd & 3rd tier proposals in Appendix

1. Donate Part of Savings Online $30 billion annually in consumer savings from industry restructuring from e-commerce (McKinsey & Co, 1998) $10 billion from reduced mortgage fees $10 billion from reduced real estate commissions $10 billion in new efficiencies from transaction managers Developed partial database of savings in each area Ask their clients to donate part of savings

$30 billion annually in consumer savings from industry restructuring from e-commerce (McKinsey & Co, 1998)

$10 billion from reduced mortgage fees

$10 billion from reduced real estate commissions

$10 billion in new efficiencies from transaction managers

Developed partial database of savings in each area

Ask their clients to donate part of savings

2. Pledge Part of Sales Price Value of properties rising from $11 trillion to $25 trillion by 2010--Fannie Mae $1 trillion in sales in 2001, rising to $2.5 trillion annually by 2010 = 0.1% of US funding goal Goal: Ask sellers to pledge a small amount of their sales price before putting their home on market Alternatively, challenge full commission RE brokerages to make the donation themselves Ask eBay to be lead player before they launch their new $695 flat fee MLS listing package this Spring

Value of properties rising from $11 trillion to $25 trillion by 2010--Fannie Mae

$1 trillion in sales in 2001, rising to $2.5 trillion annually by 2010 = 0.1% of US funding goal

Goal: Ask sellers to pledge a small amount of their sales price before putting their home on market

Alternatively, challenge full commission RE brokerages to make the donation themselves

Ask eBay to be lead player before they launch their new $695 flat fee MLS listing package this Spring

3. Donate Part of Capital Gains Change in tax law now shelters the first $500,000 from capital gains tax, up from $250,000 Between 1995 and 2000, sellers realized $700 BILLION in capital gains $200 billion in 2000 alone--nearly 100 times US Global AIDS fund Home equity increased $7 trillion in last 5 years (confirm?) Develop legislation to allow sellers to contribute part of the capital gains on the sale of their property for tax credit Lincoln, Massachusetts considered a voluntary capital gains tax

Change in tax law now shelters the first $500,000 from capital gains tax, up from $250,000

Between 1995 and 2000, sellers realized $700 BILLION in capital gains

$200 billion in 2000 alone--nearly 100 times US Global AIDS fund

Home equity increased $7 trillion in last 5 years (confirm?)

Develop legislation to allow sellers to contribute part of the capital gains on the sale of their property for tax credit

Lincoln, Massachusetts considered a voluntary capital gains tax

4. Donate Fraction of Inheritance Baby boomers already inheriting $1 trillion per year $10 to $41 trillion in inheritances by 20?? (check BC report) Work through bank trust departments, estate planners and estate attorneys, rather than real estate brokerages Inherited wealth will skyrocket under new tax laws Exemption level rises from $1 million to $3.5 by 2009, while tax rate declining from 50% to 45% by 2009 Estate tax phased out all together in 2010, then reverting back to 2001 (confirm)

Baby boomers already inheriting $1 trillion per year

$10 to $41 trillion in inheritances by 20?? (check BC report)

Work through bank trust departments, estate planners and estate attorneys, rather than real estate brokerages

Inherited wealth will skyrocket under new tax laws

Exemption level rises from $1 million to $3.5 by 2009, while tax rate declining from 50% to 45% by 2009

Estate tax phased out all together in 2010, then reverting back to 2001 (confirm)

Summary of Tier 1 Revenues E-commerce savings: $30 billion annually or 10 times US fundraising goal Sale of existing homes: Pledge part of $1 trillion in annual sales Voluntary capital gains: $200 billion annually or 100 times US fundraising goal Inheritances: $1 trillion per year, 400 times US fundraising goal

Preliminary Interest in ASAP Rebate providers : MonsterMoving.com (9 mil registered users), LendingTree.com (7,000 agents), ZipRealty.com Listing sites : Microsoft’s HomeAdvisor.com (3 million visitors per month), Yahoo! Real Estate Real estate media : Inman.com (syndicated to XXX sites, including CBSMarketWatch, Yahoo!) State / Local Associations : California Assoc. of Realtors, Greater Milwaukee Assoc. of Realtors Sites with International audiences : Immobel.com (10 languages, South African partner w/ 41 franchises); IRED.com / International Real Estate Digest, (Best of Forbes 2001), Monstermoving.com

Rebate providers : MonsterMoving.com (9 mil registered users), LendingTree.com (7,000 agents), ZipRealty.com

Listing sites : Microsoft’s HomeAdvisor.com (3 million visitors per month), Yahoo! Real Estate

Real estate media : Inman.com (syndicated to XXX sites, including CBSMarketWatch, Yahoo!)

State / Local Associations : California Assoc. of Realtors, Greater Milwaukee Assoc. of Realtors

Sites with International audiences : Immobel.com (10 languages, South African partner w/ 41 franchises); IRED.com / International Real Estate Digest, (Best of Forbes 2001), Monstermoving.com

Phased Implementation Phase 1: Begin ASAP Revenue #1: Existing rebate providers Revenue #2: Pledge a portion of sales price Phase 2: Begin ??? Revenue #3: Inheritance under new estate laws Revenue #4: Voluntary capital gains tax Phase 3: Begin ??? Explore 2nd & 3rd Tier revenue opportunities

Phase 1: Begin ASAP

Revenue #1: Existing rebate providers

Revenue #2: Pledge a portion of sales price

Phase 2: Begin ???

Revenue #3: Inheritance under new estate laws

Revenue #4: Voluntary capital gains tax

Phase 3: Begin ???

Explore 2nd & 3rd Tier revenue opportunities

#1 Target: Existing Rebate Providers Targetting companies already generating millions in consumer rebates or other savings LendingTree.com : 7,000 agents, partnered with Costco, already offering $1,000 rebate $3 million in rebates in 2001 (confirm?) Now exclusive referral for Microsoft’s HomeAdvisor, leading RE web site w/ 3 million visitors / month Monstermoving.com : Offering referral rebate up to $1,000, international audience ZipRealty.com : $5,000 average rebate

Targetting companies already generating millions in consumer rebates or other savings

LendingTree.com : 7,000 agents, partnered with Costco, already offering $1,000 rebate

$3 million in rebates in 2001 (confirm?)

Now exclusive referral for Microsoft’s HomeAdvisor, leading RE web site w/ 3 million visitors / month

Monstermoving.com : Offering referral rebate up to $1,000, international audience

ZipRealty.com : $5,000 average rebate

Why Target Rebate Providers? Not asking real estate companies to donate anything out of their shrinking profit margins, but asking their clients Ask consumers to donate part of rebate, discount, or savings, at NO expense to themselves Unique opportunity to generate revenue without asking company or consumers to pay anything out of pocket Assumption: Because they are not being asked to pay anything out of pocket, corporate partners will be eager to join coalition to demonstrate they are good world citizens

Not asking real estate companies to donate anything out of their shrinking profit margins, but asking their clients

Ask consumers to donate part of rebate, discount, or savings, at NO expense to themselves

Unique opportunity to generate revenue without asking company or consumers to pay anything out of pocket

Assumption: Because they are not being asked to pay anything out of pocket, corporate partners will be eager to join coalition to demonstrate they are good world citizens

Interfaith Implementation Strategy Focus on opportunities to partner faith communities in the US with faith communities in Africa, particularly those operating orphanages or providing shelter subsidies to extended families or community groups Build on base of infrastructure of existing housing groups, Habitat for Humanity, GAIA, Catholic Relief Services, etc. Tap into President’s office of Faith-Based Initiatives, and it’s $100 million budget GAIA and other interfaith groups already hope to raise $100 million to fund their efforts, ASAP could expedite that goal

Focus on opportunities to partner faith communities in the US with faith communities in Africa, particularly those operating orphanages or providing shelter subsidies to extended families or community groups

Build on base of infrastructure of existing housing groups, Habitat for Humanity, GAIA, Catholic Relief Services, etc.

Tap into President’s office of Faith-Based Initiatives, and it’s $100 million budget

GAIA and other interfaith groups already hope to raise $100 million to fund their efforts, ASAP could expedite that goal

Demonstration project(s) Attempt demonstration project in Greater Boston before attempting to expand to other parts of the country, or internationally Could also try running one or more other regional demonstration projections: West coast Mid-west

Attempt demonstration project in Greater Boston before attempting to expand to other parts of the country, or internationally

Could also try running one or more other regional demonstration projections:

West coast

Mid-west

Key Success Factors High credibility spokesmen High credibility implementation partners Endorsements inside & OUTSIDE industry Coalition approach involve lenders, builders, & vendors, not just RE brokers Target RE consumers, not agents

High credibility spokesmen

High credibility implementation partners

Endorsements inside & OUTSIDE industry

Coalition approach involve lenders, builders, & vendors, not just RE brokers

Target RE consumers, not agents

Key Success Factors Build coalition with eye towards the industry 2 years from now, not the traditional players from the past Run parallel for profit effort if non-profit gets bogged down in industry politics?

Build coalition with eye towards the industry 2 years from now, not the traditional players from the past

Run parallel for profit effort if non-profit gets bogged down in industry politics?

Timeframe: Overall CANCELLED BY 9/11/01 9/21/01: Announce ASAP at UN Special Assembly on Children 4/02: Drafted proposal in response to Call for Papers 5/02: Made presentation to Rockefeller Foundation 6/02: Hired by UN-Habitat as consultant 7/02: Client delivered keynote at Connect 2002 SF 9/02: Reopened retail storefront in Cambridge 9/03: Entered ASAP into MIT Ideas Competition ASAP: Establish working group?

CANCELLED BY 9/11/01

9/21/01: Announce ASAP at UN Special Assembly on Children

4/02: Drafted proposal in response to Call for Papers

5/02: Made presentation to Rockefeller Foundation

6/02: Hired by UN-Habitat as consultant

7/02: Client delivered keynote at Connect 2002 SF

9/02: Reopened retail storefront in Cambridge

9/03: Entered ASAP into MIT Ideas Competition

ASAP: Establish working group?

Timeframe: Industry events in 2006-07 4/18-24: Online Real Estate convention 32,000 people from 38 countries in 2003 4/21-24: REIPA Convention, DC / VA 5/1-15: NAR Mid-Year Legislative Meeting & Expo, DC Spring: Consumer advocacy related conferences 5/24: National Assoc. of Real Estate Editors, Houston 11/5-8: NAR Annual Convention, Orlando 25,000 agents from 50 countries 12/1: World AIDS Day, 2004

4/18-24: Online Real Estate convention

32,000 people from 38 countries in 2003

4/21-24: REIPA Convention, DC / VA

5/1-15: NAR Mid-Year Legislative Meeting & Expo, DC

Spring: Consumer advocacy related conferences

5/24: National Assoc. of Real Estate Editors, Houston

11/5-8: NAR Annual Convention, Orlando

25,000 agents from 50 countries

12/1: World AIDS Day, 2004

Next steps (edit by audience) Recontact interested parties from RE summit Invite to join steering committee Meet with Rev. Eugene Rivers in Boston re: options for providing shelter subsidies for AIDS orphans Ask CID to review & present to GBCAIDS Get more feedback from Inman News Present concept plan to global AIDS fund, UNICEF Explore interfaith coalition building opportunities with GAIA

Recontact interested parties from RE summit

Invite to join steering committee

Meet with Rev. Eugene Rivers in Boston re: options for providing shelter subsidies for AIDS orphans

Ask CID to review & present to GBCAIDS

Get more feedback from Inman News

Present concept plan to global AIDS fund, UNICEF

Explore interfaith coalition building opportunities with GAIA

Summary: House AIDS Orphans ASAP Changes in the real estate industry present a multi-million dollar fundraising opportunity for AIDS orphans Seed industry-wide respond to the AIDS pandemic Focus on providing shelter for AIDS orphans, an estimated 40 million by 2010 Target existing rebate providers to jump start ASAP Match faith communities in the US with faith communities caring for orphans in Africa

Changes in the real estate industry present a multi-million dollar fundraising opportunity for AIDS orphans

Seed industry-wide respond to the AIDS pandemic

Focus on providing shelter for AIDS orphans, an estimated 40 million by 2010

Target existing rebate providers to jump start ASAP

Match faith communities in the US with faith communities caring for orphans in Africa

The Defining Moment of our Age I’ve come here to ask for your help. This is a big problem. We need some smart people working on it. I think this will be the defining moment of our age. When the history books (that some of you will write) make a record of our times, this moment will be remembered for two things: the internet (probably), and the everyday holocaust that is Africa. Twenty-five million HIV positives who will leave behind 40 million AIDS orphans by 2010. This is the biggest health threat since the Bubonic Plague wiped out a third of Europe. Harvard commencement address by U2’s lead singer, Bono (June 6, 2001)

I’ve come here to ask for your help. This is a big problem. We need some smart people working on it.

I think this will be the defining moment of our age. When the history books (that some of you will write) make a record of our times, this moment will be remembered for two things: the internet (probably), and the everyday holocaust that is Africa. Twenty-five million HIV positives who will leave behind 40 million AIDS orphans by 2010. This is the biggest health threat since the Bubonic Plague wiped out a third of Europe.

Harvard commencement address by U2’s lead singer, Bono (June 6, 2001)

Our response to the AIDS pandemic will be the measure of our humanity. our humanity. our humanity. our humanity. Richard Marlink, Harvard AIDS Institute, New York Times, 6/7/01

Richard Marlink,

Harvard AIDS Institute,

New York Times, 6/7/01