Impact Investors, Green Building and Thriving Non-ProfitsPresentation Transcript
Build healthy green communities that generate income
for the Non-Proﬁt, the Donor and Simcoe Green Homes.
The Non-Proﬁt (NP).
The Developer - Simcoe Green Homes.
The Non-Proﬁt Challenge
Fundraising is crucial to stay in business.
Fundraising is time and labor intensive.
Average funds raised (under $100) require many donors and staff
hours to generate.
Little ability to forecast future ﬁnancials within this model.
Time spent fundraising is time spent away from core mission.
The Donor ‘Problem’
Donations and gifts only satisfy one requirement of donors, the “Do
good, feel good” requirement.
Donors typically view donations as coming out of their “Charitable
Giving” bucket only which is usually a ﬁxed amount per year.
Donors are asked for money constantly. The more non-proﬁts they
support, the less money given to each non-proﬁt.
Typical Financial Buckets of a Donor
Change the Game
Have Donors ‘invest’ rather than donate.
Tap into their 60% investment pool.
Separate NP from every other non-proﬁt looking for money.
Donor invests with NP in real estate through SGH.
Donor provides the capital, SGH develops and sells the project.
Proﬁt splits (NP, Donor, SGH) are pre-determined prior to the deal.
8-12% annually at a minimum.
That typically beats:
Gain higher returns while supporting a cause they already believe in.
Portfolio diversiﬁcation (unlikely they already invest in green real
Take advantage of the emerging trend in healthy green homes
Donor invests capital into new LLC (jointly owned by NP, Donor and
SGH uses capital on a speciﬁc development project.
LLC receives proﬁt from development sales and disburses proﬁts
between Donor, NP and SGH.
Rinse and repeat.
Donor receives: Capital return + Percentage of Proﬁts.
Non-Proﬁt receives: Percentage of Proﬁts.
SGH receives: Percentage of Proﬁts.
- Larger donations.
- Bigger pool of donors.
- Less time spent chasing smaller
- Consistent revenue stream.
- Grow faster, quicker.
- Safer investment.
- Risk diversiﬁcation.
- Greater returns.
- Supporting a ‘cause’
- Increased proﬁts.
- Greater support to the NP.
- Blueprint for other NP’s.
About SGH and the
We are a smart green home developer serving young family home buyers in
Our mission: “Build healthy green homes that contribute to healthier, happier
Jim Simcoe - Founder & CEO
Kevin Gaynor - COO
Annette Di Bello Kelly - CFO
Katie Teare - Operations Manager
Average age of home buyer = 38.
63% of buyers are married households.
63% of buyers earn over $100,000.
61% have a college degree.
64% of buyers are repeat buyers.
*according to CAR 2013 Home Buyer Survey
Product & Services
Smart green home developments consisting of healthy green homes.
Homes to be net-zero energy and LEED Platinum rated.
Homes will be built in a factory off-site.
How we make money
Develop entitled land into smart green home developments.
Project: Build two 1700 square foot healthy green homes.
Timeline (land purchase to sale) - 12 months.
9 months development & construction, 3 months to sell.
Land development and Construction costs - $1,636,670
Construction loan - $1145,669 (70%)
Total Projected Sales - $2,300,000
Net proﬁt - $548,330.
Proﬁt Margin - 23.84%
Expensive, time consuming design process
Fi y e in
Our Timeline - 9-12 months
Traditional builders - 24-36 months
Weather-dependant construction on site
Our target customers
Couples with young children still in the home.
Ages: 30 - 55.
Earn over $100k annually.
Repeat home buyers.
Traditional builders - who are largely unqualiﬁed to build and offer
what our customers desire.
Niche builders - who position themselves as ‘green’ builders to gain
market share even though they have little- to-no green building
Why we’re different
We understand our market because we ARE our market.
Utilize: city green development perks, leverage incentives/rebates.
Our green building experience covers 20+ years, multiple markets, multiple
housing types and a variety of economic conditions across the US.
18% ROI for our investors in 2012.
Extensive background in over 200 + green real estate projects (residential,
commercial, etc.) throughout North America.