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August 2011 Resource Development Committee Meeting

August 2011 Resource Development Committee Meeting

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  • 1. Maximizing the Construction GIK Opportunity
    Driving Down the Cost of Home Construction and Repair
  • 2. PANELISTS(In Order of Presentation):
    • Dick Seitz, Director of Customer Service & Training/Valspar Corporation
    • 3. Joe Allwein, Board Chairman/Habitat for Humanity of The Chesapeake
    • 4. Bert Green, Executive Director /Habitat for Humanity of Charlotte, NC
    • 5. Steve Sferrino, Vice President Construction & Real Estate/
    Habitat of Humanity of Greater LA
    • Joe Mulvey, Regional Development Director Great Lakes/HFHI
    • 6. Drew Meyer, Senior Director ReStore & Gifts In Kind Support/HFHI
  • National Gifts In Kind
    • On Line Ordering System
    October 2009 – December 2010
    934 Affiliates , 50 States & Canada
    15,560 Orders, $25 million
    • Average Cost Savings per House
    $3,000-$5,000
  • 7. GIK/A CORPORATE PARTNER’S PERSPECTIVE
    Dick Seitz
    Valspar corporation
    Director of Customer Service & Training
  • 8. Valspar’s Impact on our Mission
    National partner since 1979.
    In 2003 committed to over $45 million in cash and GIK donations.
    In 2007 kicked off the national launch of ABWK in Los Angeles.
    Supplies discontinued paint that can be resold in ReStores.
    Valspar Foundation shares our mission of providing affordable housing in the neighborhoods we live and work.
  • 9. LOCAL GIK PROGRAM
    JOE ALLWEIN
    BOARD PRESIDENT
    HABITAT FOR HUMANITY of the CHESAPEAKE
  • 10. HISTORY OF HFHC’S GIK PROGRAM
    • Used most corporate HFHI GIKs (Whirlpool, Larson, Yale, Hunter)
    • 11. Local GIKs very limited – No Focus
    • 12. House cost reduction not important
    • 13. Development resources devoted to raising cash revenue, not GIKs
    • 14. Prior to 2007, GIKs per house averaged less than $7,000 per house including national and local partners
    2
  • 15. DEVELOPING LOCAL GIK STRATEGY
    • Dedicated resource(s) is a MUST
    • 16. Buy in by ED/Board and Construction Department
    • 17. Acceptance of vendor turnover
    • 18. Rank house costs starting from highest
    • 19. Understanding of HFHI brand value
    • 20. Tie in to ReStore donations
    3
  • 21. KEY FACTORS OF LOCAL GIKS
    • Vendors must be large enough to donate labor and/or material (Don’t ask a “Mom & Pop” for 10 free houses)
    • 22. Generally, existing vendors will not be new GIK partners
    • 23. Break out material from labor on major trade subcontractors for separate GIKs
    • 24. Always ask for everything to be donated
    4
  • 25. IMPLEMENTING LOCAL GIK STRATEGY
    • Update construction on regular basis
    • 26. Ask for one (1) year commitment
    • 27. Understand economic conditions of market/industry (Discount vs. Donation)
    • 28. Be flexible on partnership (i.e. Labor donated but material at cost)
    • 29. Use suppliers purchasing leverage with their supply chain
    • 30. Offer to educate GIK partners’ employees on Habitat mission/brand
    5
  • 31. GIK STRATEGY RESULTSas of DECEMBER 31, 2010
    Plumbing 2,500
    Insulation 1,800
    HVAC 2,500
    Concrete 500
    Flooring 3,000
    Electrical 2,500
    Windows 1,700
    Drywall 1,500
    Cabinets 500
    Fencing 700
    Dumping Fees 1,500
    Portable Toilets 425
    Softwood Lumber 4,000
    Other HFHI GIK 3,300
     
    TOTAL $26,425
    Historical GIK $7,000
    GIK Increase $19,425
    EST. HOUSE COST $65,000
    NOTE: (1) Based on rehabbed house construction costs excluding land acquisition cost
    (2) Land acquisition costs now less than $5,000 per house
    6
  • 32. LOCAL GIK SUMMARY
    • Get buy in from all departments
    • 33. Identify resource for GIK program
    • 34. Analyze potential companies
    • 35. Meet with decision-maker(s)
    • 36. Ask for a donation
    • 37. Be prepared to change vendors
    • 38. Use ReStore as part of GIK construction strategy
    • 39. Don’t accept market pricing on purchased materials or services!
    7
  • 40. GIK JOB REQUIREMENTS
    Able to relate to business owners
    Ability to identify right GIK partner
    Understand how to market brand value
    Passion for Habitat
    8
  • 41. Thanking Our National
    Gifts In-Kind Sponsors
  • 42. In-Kind Cost Savings
  • 43. In-Kind Sponsors
    National Sponsors
    Local & Regional Sponsors
  • 60. Sponsors’ Website Links
    Dow: http://www.dow.com/habitat/
    Ferguson: http://www.ferguson.com/corporate.shtml
    Schneider Electric: http://www.schneider-electric.us/sites/us/en/company/community/habitat-for humanity/habitat-for-humanity.page
    Valspar: http://www.valsparpaint.com/en/about-us/habitat-for-humanity.html
    Whirlpool: http://www.whirlpoolcorp.com/responsibility/building_communities/habitat_for_humanity.aspx
    Yale: http://www2.yalelock.com/Yale/Templates/LocalNormal____3814.aspx
  • 61. Sponsors’ Contact Information
  • 62. Draft of Proposed Signage for Habitat Charlotte ReStores
    Signs thanking our sponsors will appear soon in both of our ReStores.
  • 63. Yard sign, front
    Thank you to our other sponsors:
    and back
  • 64.
  • 65. MAXIMIZING CONSTRUCTION GIK
    Driving down the cost of home construction and repair
    Steve Sferrino
    VP CaRE
    Greater Los Angeles
  • 66. Know Your Cost
    Determine
    True cost to
    Build
    2008 - $106,250 = $85sf
    GIK Goal 20% = $21,250
    net cost $85,000
    Establish goal
    per house GIK value
    2009 - $115,000 = $ 92sf
    GIK Goal 20% = $23,000
    net cost $92,000
    Develop Tracking Measures
    2010 - $125,000 = $100sf
    GIK Goal 25% =$31,250
    net cost $93,750
  • 67. Taming Increasing Costs with GIK
    Cost of building increases by approx $10,000 per year
    net increase is only $1750 due to increased GIK
  • 68. Identify Needs and Sources
  • 69. ASK
    • Seek Mutually Beneficial Partnerships
    • 70. Consider Prospect Buy-In
    • 71. Identify Decision-Maker
    • 72. Emphasize Habitat for Humanity’s Mission
    • 73. Highlight Green Initiatives
    • 74. Extend Opportunity to Support Community Engagement
  • LEVERAGE
    • Leverage All Available GIK Sources
    • 75. Utilize NSP Funded Projects as ROI to Donor
    • 76. Collaborate with Other Affiliates in Region
  • TRACKING MEASURES
    • Establish Per Project Goals
    • 77. Record Gift Values
    • 78. Maintain Accurate Records
    • 79. Assess Areas of Need
    • 80. Increase Affiliate’s Creditability
  • Know where you are at
  • 81. DEDICATED RESOURCE
    Jessica Killeen GLA’s AmeriCorps VISTA GIK Coordinator
    Identify Capacity for Dedicated Resource to Develop and Implement Program (AmeriCorps VISTA, Volunteer, Intern, Committee and/or Staff)
  • 82. WIN-WINMUTUALLY BENEFICIAL PARTNERSHIPS
    • Engage GIK Donors in Build Days
    • 83. Provide Appropriate Tax Documentation
    • 84. Involve Donor in All Affiliate Special Events
    • 85. Publicize through Print and E-media
    • 86. Highlight Partnership through Onsite Signage
    • 87. Offer Recognition at Home Dedication
  • MAXIMIZING CONSTRUCTION GIK
  • 88. Why Focus on GIK?
    Joe MulveyHFHI Regional Director
  • 89. HFHI GIK Initiative designed to:
    Leverage successful relationships between HFHI and donors like Dow, Whirlpool, Schneider Electric, Valspar and others
    Increase GIK use both from national and local GIK partners
    Focus on cost reductions
    GOALS:
    Reduce costs (cash outlays by affiliates)
    Generate unrestricted cash (With ReStore)
    [I will focus only on GIK for House production in this section – but recognize that GIK for ReStore is vital)
    National Affiliate Conference • No Hands But Yours
  • 90. What’s changed since last conference?
    Economy
    Donations Down
    Increased demand for GIK
    National Affiliate Conference • No Hands But Yours
  • 91. For Many National GIK Donors
    Still less than optimal utilization of GIK by affiliates:
    Many reasons for low utilization:
    Lack of Communications between HFHI and affiliates
    Affiliates not focused enough on cost reduction opportunities using GIK
    Overall planning and logistics, order entry system complexities
    Many smaller affiliates find utilizing GIK more difficult than large affiliate
    National Affiliate Conference • No Hands But Yours
  • 92. Cash versus GIK?
    Is it an either/or?
    How about “BOTH”!
  • 93. Cash is top lineGIK is bottom line
    Bottom line with enhanced GIK–yields more families served!
  • 94. If you are not focused on GIK and other cost reductions:
    It’s a symptom that the affiliate leadership (ED and Board) are missing a good opportunity
  • 95. If you are focused on GIK and cost reduction:
    Your affiliate leadership knows its business and is a benchmark in the country. Too few affiliates are leaders in GIK in the U.S. today!
  • 96. Who in the affiliate wakes up in the morning thinking of GIK?
    • Someone has to be (i.e., Board member, ED, Volunteer. Person doing this should understands business well)
    • 97. Affiliate leaders on this panel are benchmarks in the country in cost management and GIK leadership
    • 98. Thank you Bert, Joe, Steve for your leadership
  • The Rewards
  • 99. Summary
    GIK utilization is Growing
    - GIK donors can be migrated to give Cash as well- Keep focus & sense of urgency on GIK to reduce costs
    Thank YOU to all our GIK donors
    National Affiliate Conference • No Hands But Yours
  • 100. Contact Information
    Dick Seitz dseitz@valspar.com612-851-7767
    Joe Allwein jdallwein@aol.com443-925-1173
    Bert Green bgreen@habitatcharlotte.org 704-716-7068
    Steve Sferrino ssferrino@habitatla.org310-324-4206
    Joe Mulvey jmulvey@habitat.org 847-991-0369
    Drew Meyer dmeyer@habitat.org 404-420-6762