Organizational Analysis Paper-Amy Ellis

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Aurora University *

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6533

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Apr 3, 2024

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HABITAT FOR HUMANITY 1 Organizational Analysis Paper Amy Ellis Aurora University SWK 6533 R2-02 - 2307 - Advanced Social Policy Dr. Terri Lewinson
HABITAT FOR HUMANITY 2 Overview The organization that will be reviewed is Habitat for Humanity. This organization was founded by a farmer named Clarence Jordan from Americus, Georgia (HFH, 2023). There were other founders named Millard and Linda Fuller who developed the main concept of the organization which is called “Partnership Housing” (HFH, 2023). A family is selected for a home and volunteers help build the home. The family that is selected must put in 300 man hours into building the home as a requirement for the home. The homeowners are offered a home with an affordable home loan. There is an assumption by many that these homes are given to the homeowner for free and that is not true. Hundreds of sweat equity hours are also put into the home as well as the purchase of the home at the affordable rate. Target Population The organization is centered on helping families in need of adequate and affordable shelter who work side by side with community volunteers to build affordable homes at no profit. These homes are offered to new home owners with a no interest loan which is provided to them by supporters with money earned by fundraising which created “The Fund for Humanity” which in turn would be used to help build more homes (HFH, 2023). This program went to the Congo and with the help of President Jimmy Carter and his wife; they raised so much awareness that the program now is available in all 50 states across the United States (HFH, 2023). Mission Statement The soothing mission statement for Habitat for Humanity is “Seeking to put God’s love into action, Habitat for Humanity brings people together to build homes, communities and hope.” (HFH, 2023). According to Wende Burbridge, “Habitat for Humanity of NW Indiana's mission is to bring people together to build homes, communities and hope.  Our organization utilizes its
HABITAT FOR HUMANITY 3 partnerships with companies, municipalities, the faith community and individuals in Lake County, Indiana and beyond to support our mission.” Core Program/Service Areas The core programs of the Habitat for Humanity are home construction, aging in place for Habitat for Humanity, Neighborhood Revitalization, Cost of Home Campaign, Terwilliger Center for Innovation in Shelter, Advancing Black Homeownership, Disaster Response, Financial Education, Tithe Program and Habitat Mortgage Solutions (Habitat, 2023). Service Areas This organization services all 50 states in the United States, Canada, Latin America and the Caribbean, some areas in Europe and the Middle East, some areas of Africa, Asia and the Pacific (Habitat, 2023). Habitat for Humanity is in over 70 countries. Leadership structure and Decisions The organization is run by a Board of Directors (see Appendix A and Appendix B). The decisions are made within the leadership team (Habitat, 2023). The decisions within the organization are made together within the board of directors. They work together to consistently establish a functional and operational organization so that products and services can be delivered on a consistent basis. Financial Information When viewing Habitat for Humanity’s IRS form 990 for 2021, showed an end of year surplus of $1,164,981 (IRS 990,2023). The form 990 shows a comparison of 2020 years end to 2020 with a gain in contributions. 2020 had contributions in the amount of $330,864 and 2021 had contributions of $562,232 (IRS 990,2023). Their total revenue for 2020 was $694,926 and 2021 showed total revenue of $1,060,057 (IRS 990,2023). Compared to 2020 the report shows
HABITAT FOR HUMANITY 4 that although their revenue minus expenses were less during 2021, Habitat for Humanity was able to end the year with a higher value than 2020 which was $988,150 (IRS 990,2023). The main sources of income for this organization come from donations from other organizations. The donations are actually increasing according to the Director of Development Wende Burbridge of Northwest Indiana during an interview. This was evident when looking at the form 990’s in previous years as well. When compared to the Housing Development Corp. of SW Florida, Habitat for Humanity shows that they are in a much better position to succeed as their margin of Surplus compared to liabilities is much higher allowing for them to end the year with a much larger asset amount. The HDCSWF has Assets of $41,407 with liabilities of $30,832 whereas Habitat for Humanity has total assets of $2,703,349 with liabilities of just $425,921 (CANDID, 2023). Financial Recommendations This organization seems to be quite stable financially and showing growth each year. One suggestion would be to create more opportunities for families to have access to housing rather than sit on the entire surplus since they run on donations to build their homes. When Wende stated that the rising expenses are causing them to not be able to reach their intended goal of 10 homes per year, perhaps this organization could advocate more for volunteers in the community. Perhaps there could be commercials on television or fliers in the mail that explain what their organization is. With the large amount of surplus that is left over each year, there are ways that they could reach more people to help volunteer which in turn would reduce the expenses of contractors and labor costs. Home Ownership
HABITAT FOR HUMANITY 5 Now to explain how a family gets a home in today’s age. When speaking to Wende, she also stated that Habitat serves low-income families earning 30 to 80% of the average median income for Lake County, Indiana.  An example would be that the average family of four is earning $91,100 in Lake County; 30 to 80% of that is $30,000 to $71,450.  A qualified Habitat partner family is able to make their mortgage payment with 0% interest and has agreed to 300 sweat equity hours to help build their home.  Partner families are approved by committee and our board. Each home we build costs approximately $170,000 and is sold to an approved family at the appraised value, again with a 0% interest loan. Program Evaluation When interviewing Wende, the question was asked “What are the barriers to the success of your organization?” and Wende answered “Our affiliate has been successful in completing the homes we planned to close on in the last two years, which was five each year.  However, we have a long-range goal of building ten homes per year and a long way to fundraise to accomplish that. With expenses increasing substantially since the Covid Pandemic and cash gifts declining nationwide, fundraising is our greatest challenge.  Indeed, fundraising is always one of the top challenges non-profits have.  We compete for the hearts and dollars of individuals and there is so much need across many areas of life.” Wende stated that Habitat for Humanity of Northwest Indiana is projected to help five families so by the end of the year and plans to do the same for 2024. She also stated that to date since 1986 the organization has helped 150 families. That is just one chapter in the state of Indiana. Data collection processes and responsibilities
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