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Presentation construction gifts in kind


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August 2011 Resource Development Committee Meeting

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Presentation construction gifts in kind

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