accenture innovation challenge

Accenture Innovation ChallengeHabitat for Humanity International (HFHI)

Insight Deck

Copyright © 2017 Accenture All rights reserved. 2

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Introduction to the Habitat for Humanity Insight Deck

Welcome to the Innovation Challenge! Your team should use this Insight Deck to familiarize yourself with your client, Habitat for Humanity International.

Overview: At Accenture, we frequently put together Insight Decks about our clients. We use them to deepen our understanding of our client's operating environment, business model, and priorities. Insight Decks also serve as reference guides for key client information, and as onboarding materials for consultants that join a project with the client.

– Insight Decks can cover the following topics:

• Strategic Direction

• Financial Information

• Current Initiatives

• …and more!

Purpose: This Insight Deck will familiarize you with your client before the Innovation Challenge begins.

– Review these slides to learn more about Habitat for Humanity and its mission and current operations. You can then use any of this information to support your business case recommendations to the client.

4

TA B L E O F C O N T E N T S :

SECTION ONE

HFHI Overview:History, Mission, Vision, and Structure

SECTION TWO

Ecosystem Overview:Landscape and Awareness

SECTION THREEIndustry Dynamics: 2016 Major Trends Affecting HFHI

SECTION FOUR HFHI in Action

5

SECTION ONE:

Habitat for Humanity International Overview


HFHI OverviewVision & Mission

VISION

“A world where everyone has a decent place to live.”

MISSION


HFHI OverviewHistory

Habitat for Humanity helps people achieve strength, stability and independence through safe, decent and affordable shelter.

Established in 1976, Habitat is based on the principle that those in need of adequate shelter work side by side with volunteers to build homes.

Habitat’s initial projects focused on Americus, Georgia and the Democratic Republic of the Congo.

Habitat for Humanity (HFHI) now works in 1,400 communities across the U.S. and nearly 70 countries, and has helped 9.8 million people.

Source: Habitat’s History

http://www.habitat.org/about/history


HFHI OverviewThe Founding of Habitat for Humanity

The idea that became Habitat for Humanity first grew from the fertile soil of KoinoniaFarm, a community farm outside of Americus, Georgia, founded by farmer and biblical scholar Clarence Jordan.

On the farm, Jordan and Habitat’s eventual founders Millard and Linda Fuller developed the concept of “partnership housing.” The new concept centered on those in need of adequate shelter working side by side with volunteers to build decent, affordable houses. The houses would be built at no profit. New homeowners’ house payments would be combined with no-interest loans provided by supporters and money earned by fundraising.

In 1976, the Fullers decided to create a new, independent organization: Habitat for Humanity International. From 1976 to 2005, the Fullers devoted their energies to the expansion of Habitat throughout the world.

Source: Habitat’s Co-Founders

http://www.habitat.org/about/history/habitat-for-humanity-co-founder-millard-fuller


HFHI OverviewPrinciples

Wherever Habitat works, its witnesses tangible evidence that strong and stable homes help build strong and stable communities.

Habitat for Humanity knows that safe and affordable shelter plays an absolutely critical role in helping families to create a new cycle, one filled with possibilities and progress.

Affordable homeownership can free families from poverty and fosters the skills and confidence they need to invest in themselves and their communities.

There is a direct connection between housing quality and the well-being of children…

…habitat homeowners show improved grades, better financial health, and parents who are more sure that they can meet their family’s needs.

Source: Why Shelter

http://www.habitat.org/about/why-shelter


HFHI OverviewApproach

People in communities all over the world partner with Habitat to build or improve a place they can call home.

1. Families in need of housing apply for homeownership with their local Habitat affiliate.

2. Local Habitat family selection committees select homeowners based on three criteria:

• The applicant’s level of need;

• Their willingness to partner with Habitat; and,

• Their ability to repay a mortgage through an affordable payment plan.

• Neither race nor religion is a factor in choosing Habitat’s homeowners.

3. Habitat’s homebuyers invest hundreds of hours of their own labor, called sweat equity, working alongside volunteers and Habitat homeowners.

• Habitat homeowners also pay an affordable mortgage. Homeownership fosters financial responsibility and the confidence families need to invest in themselves and their communities.

WHAT IS SWEAT EQUITY?

Sweat Equity is the hours of labor homeowners dedicate to building their homes and the homes of

their neighbors. By performing sweat equity, Habitat homeowners gain a greater sense of self-worth and

become more personally invested in their community.

“Habitat affiliates require only a small down payment because few low-income

families can afford more than that. Instead, partner families are required to

contribute sweat equity.”— David Rubel, If I Had A Hammer: Building Homes and

Hope with Habitat for Humanity (2009)

http://www.habitat.org/stories/what-is-sweat-equity


In addition to new construction, Habitat also renovates existing homes in many communities, particularly in urban areas.

Habitat for Humanity helps people repair and improve their own homes and neighborhoods.

Habitat’s Disaster Response works primarily overseas to address a variety of housing needs after natural disasters.

Habitat’s advocacy work raises awareness and support for affordable housing around the world.

Outside of North America, Habitat works with partner organizations to serve even more families through innovative financing methods.

HFHI OverviewKey Activities

Habitat for Humanity works in a number of different ways to create decent, affordable housing.


HFHI In ActionOther Important Programs

Habitat homeowners receive financial education, help build their houses, and pay an affordable mortgage.

Home Construction: Families in need of a decent place to live build safe and affordable homes in partnership with Habitat for Humanity by helping to build.

Neighborhood Revitalization: includes neighbors and local organizations to change the dynamics of their neighborhood.

Market Development Programs: outside the US pursue new strategies to assist families in need of a safe place to call home.

Habitat’s Disaster Response: provides shelter assistance, education training and partnerships to affected individuals of a disaster.

Financial Education: helps alleviate any concerns or barriers on the path to homeownership.

HFHI and community

members support families in need of affordable housing.

Homeownership helps families save

more of their paycheck each

month.

Families invest in education,

healthcare, and healthier food

choices.

Families are more stable and self-

reliant.

Stable families help others and invest

in their community.

Strengthening Self-Reliance

Families in need of a decent place to live build safe and affordable homes in partnership with Habitat for Humanity

http://www.habitat.org/impact/our-work/neighborhood-revitalization

http://www.habitat.org/stories/habitat-helps-make-markets-work

http://www.habitat.org/impact/our-work/disaster-response

http://www.habitat.org/impact/our-work/financial-education


HFHI OverviewWhere Habitat Builds

Habitat for Humanity works in more than 70 countries across the globe

United States and

CanadaWorks in all 50 states &

all 10 Canadian provinces

Latin America and the CaribbeanWorks in more than 15 countries including Haiti & Uruguay

Europe, the Middle East, and AfricaWorks in more than 25 countries including Jordan & the United

Kingdom

Asia and the Pacific

Works in more than 15 countries including

Vietnam & New Zealand

Source: Where We Build

http://www.habitat.org/where-we-build


Habitat’s Organizational Structure

US CouncilAdvisory Group

IBODInternational Board of

Directors

HFHI – HQHabitat for Humanity

International

US/CANADAHFHI Area Office

Atlanta/Americus, GA

APHFHI Area Office

Manila, Philippines

EMEAHFHI Area Office,

Bratislava, Slovakia

LACHFHI Area Office, San

Jose, Costa Rica

31State/regional Support

Organizations

5 BranchesHFHI Registered Office

12National organizations

4 BranchesHFHI Registered Office

22 National Organizations

1 BranchConsolidate Entity

14 National Organizations

56 Affiliates HFHI Canada

3 PartnershipsNon-HFHI Branded

Entity


Entity


Entity

~1,400 AffiliatesU.S.


HFHI OverviewImpact

Habitat’s work provides strength, stability, self-reliance, and shelter to those in-need.

A Habitat home is a strong foundation for a

family, an opportunity on which they can build a

better life.

A Habitat home is a stabilizing force for a family and for their

larger neighborhoods and communities.

Habitat homes help people help themselves

through financial education, assistance

with mortgage payments and building their

homes.

Habitat not only builds houses, but it also

improves homes through a variety of community-

based programs.

A new community garden means a mom who lives in a

food desert can feed fresh vegetables to her children.

A new home means a family can move into a safe

neighborhood with good schools.

A new Habitat home allows a daughter with a disability to

care for her mom with Alzheimer’s.

A newly refurbished home reduces common pollutants, improving the life of a child

with asthma.

Strength Stability Self-reliance Shelter

16

SECTION TWO:

Ecosystem Overview


Ecosystem OverviewPoverty in America

Tammie, a mother of three, struggled for years with constant moves, unsafe neighborhoods, unhealthy living conditions and too-high housing costs. The process of partnering with Habitat to build her home enabled her to get out of debt and gain access to an affordable mortgage on a home she helped build. “Because of this house,” she says, “my kids have been able to go to school, I’ve been able to move on in my education, and I’ve been able to move on in my career.”

# People in Family Unit

Federal Poverty Level in 2015 –Annual Income

1 $11,770

4 $24,250

A family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1968 1973 1978 1983 1988 1993 1998 2003 2008 2013

The Number of People in Poverty in The United States Increased Since the 1960s

Numbers in thousands

The Story of Tammie

Source: Department of Health & Human Services

http://aspe.hhs.gov/poverty/15poverty.cfm


Ecosystem OverviewGlobal Poverty

In rural areas, poorly constructed homes provide little protection from snakes, insects, intruders, rain, or variations in temperature. Access to toilets and clean piped water is limited, causing severe health problems to occur.

Moreover, large families are often crowded into one or two room structures. Some even share their homes with their livestock or poultry.

In urban areas, there is overcrowding and housing deterioration. Families often lack access to drinking water and the lack of disposal services create health issues for children growing up in unsanitary conditions.

Global Poverty Facts

The most recent global poverty estimate is 10.7% of the world’s population. 767 million people live with an

income of less than $1.90 per day.

Source: World Bank, Our World in Data, Taking on Inequality

http://www.worldbank.org/en/topic/poverty/overview

https://ourworldindata.org/grapher/share-of-the-population-living-in-extreme-poverty.png?tab=map&region=World&colorblind=1&size=1200x800&v=eed48776995ccb83cac9921d9e4fae54

https://openknowledge.worldbank.org/bitstream/handle/10986/25078/9781464809583.pdf


Ecosystem OverviewWhy Affordable Housing?

With substandard or unaffordable housing, parents are forced to make impossible choices about food, healthcare and education.

More than half of all adults have made at least one tradeoff in the past three years to cover their rent or mortgage. Tradeoffs include taking a second job, cutting back on health care and healthy food, and moving to less safe neighborhoods.

However, families who pay more than 30% of their income for housing often have even greater difficulty affording necessities.

An estimated 12 million renter and homeowner households now pay more than 50 percent of their annual incomes for housing, and are considered severely cost burdened.

While incomes among minimum-wage and other low-wage workers have stagnated, the cost of housing has continued to rise. This makes it even harder for families to pay for health care, health food and be able to save.

Maria Lucia works full time as a janitor to support her 7-year-old daughter Bia.

Before Habitat, her home had little ventilation and Bia often had to miss school due to respiratory problems, common among children who grow up in these conditions.

Through a loan from Habitat, Maria Lucia was able to improve her house. Now Bia’s health has improved, and she has a place to study, play and spend time with her mother.

Source: Department of Housing & Urban Development

http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/affordablehousing/


Ecosystem OverviewA History of Affordable Housing Activism

Despite renewed attention on

affordable housing, particularly for

veterans and in the wake of Hurricane

Sandy, total housing starts remained well below the pre-crisis

levels and affordability remains a key issue.

The Great Depression highlighted the issue

of affordable housing, and the National

Housing Act of 1934 was passed to

stimulate the release of credit for home

repairs and construction.

The Housing and Urban Development Act of 1965 created

HUD as a cabinet-level agency and initiated a

leased housing program to make privately owned

housing available to low-income families.

New homes were built at a volume never reached before or since. The United States counted 19

million housing starts, 3 million of whichwere subsidized

dwellings for low-income households.

A period of unevenly distributed prosperity

began. Home ownership rates rose, but the proportion of income households paid for shelter also

rose, creating burdens for low-income

Americans.

With the Housing Crisis, increased foreclosure rates

among U.S. homeowners led to a crisis that adversely

effected home valuations and reverberated

throughout the nation.

1930s

1960s

1970s

1980s

2000s

Today

The Fullers start Habitat for Humanity in 1976.

H4H Founded

Source: HUD Timeline, Joint Center for Housing Studies - Harvard

https://www.huduser.gov/hud_timeline/

http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/w12-5_von_hoffman.pdf


Ecosystem OverviewKey Terms: Fair Market Rent, Housing Wage & Renter Wage

In no state can a person working full-time at the federal minimum wage afford a one-bedroom apartment at the Fair Market Rent.

• Fair Market Rent is the 40th percentile of gross rents for typical, non-substandard rental units. HUD determines FMRs on an annual basis and reflects the cost of shelter and utilities. FMRs are used to determine payment standards for Section 8 contracts.

• Housing Wage is the estimated full time hourly wage a household must earn to afford a decent rental unit at Fair Market Rent while spending no more than 30% of their income on housing costs.

• Renter Wage is the estimated hourly wage among renters by region

In Maryland, a renter making minimum wage would need to work 101 hours in a week to afford a one bedroom house at FMR.

Housing Wage – Renter Wage

Affordability Gap

Source: National Low Income Housing Coalition

http://nlihc.org/sites/default/files/oor/OOR_2015_FULL.pdf/


Ecosystem OverviewLack of Affordable Housing by the Numbers

When families have to pay over 30% of their income on housing and utilities – their housing is unaffordable, and they are forced to make impossible choices about healthcare, education and savings

In 2014, the severely cost burdened renters of the lowest income group spent on average 38% less on food and 55% less on healthcare than similar households who were not severely cost burdened.

In the past decade, more than 46,000 Project-Based Section 8 rental units have been lost as affordable housing units due to demolition and contract expirations

The US has shortage of 7.2 million affordable rental units available to ELI renter households. There were 31 affordable and available units per 100 ELI renter households.

75% of ELI renter households and 93% DLI households were severely cost-burdened, spending more than half of their income on rent and utilities.

Rents have risen nationally for 23 straight quarters.

• Deeply Low Income families (DLI) – households with income at or below 15% of area median income

• Extremely Low Income families (ELI) - households with income at or below 30% of area median income

• Very Low Income families (VLI) - households with income at or between 31% and 50% of area median income

Source: The Affordable Housing Gap Report

http://nlihc.org/sites/default/files/Gap-Report_print.pdf


Ecosystem OverviewPositive Impacts of Affordable Housing

Beyond the physical security of a building, affordable housing allows individuals to use their earnings on other critical aspects of their lives, fostering self-reliance.

Affordable housing can improve health outcomes by freeing up family resources for nutritious food and health care expenditures.

Well-constructed and well-maintained affordable housing can reduce health problems. Stable, affordable housing may improve health outcomes for individuals with chronic illnesses by providing an efficient platform for health care delivery.

Access to safe neighborhoods and uncrowded housing can reduce stress, increase access to amenities, and lead to important health benefits.

Affordable and accessible housing linked to supportive services enables older adults and others with mobility limitations to remain in their homes.

Key Fact: College GraduationChildren of homeowners are 116% more likely to graduate from college

compared with children in families who do not own their homes.

Source: Center for Housing Policy

http://www2.nhc.org/HSGandHealthLitRev_2015_final.pdf

24

SECTION THREE:

Industry Dynamics


Industry DynamicsStakeholder Overview

HFH must look towards its partners and trends to understand its industry.

VolunteersChallenge: Adapting to the 21st Century VolunteerDonors

Beneficiaries

Challenge: federal funding and changing political landscape

Academia

Government

Challenge: adapting to the influence social networks

have on millennial volunteering and giving

Faith-based organizations

Corporations &

FoundationsCorporate Partners donate more than $10M annually. May engage employees in volunteer programs or pro

bono volunteering.

Volunteers within faith organizations raise funds and do hands-on service

Cause marketing partners offer cobranded marketing initiatives and

help to recruit volunteers.

Media & Entertainment partners such books and television stations help

raise awareness

Private philanthropy partners include individuals who invest in HFHI’s work

Government funding supports direct service or volunteer engagement.

Volunteer advocacy can change policies that affect

beneficiaries.


Industry DynamicsFinancial Overview

Habitat for Humanity international and its affiliates and national organizations together estimated a total revenue of $1.8 billion in 2015.

653 629 657

454

216269

430

397 470

179

387 446

0%

25%

50%

75%

100%

2013 2014 2015

Contributions & Grants Other income Sales of homes Gifts-in-kind

Sources of Revenue Since 20131

1 Habitat for Humanity affiliates and national organizations keep their own financial records. The numbers above are from an unaudited compilation of these financial records. All numbers are in millions.

The Philanthropy 400, which annually ranks the nation’s largest nonprofit groups based on funds raised, has included Habitat forHumanity on its list for all 25 years of publication. For 2016, HFHI ranked 20th with an income of $1.7 billion.

Industry DynamicsFinancial Overview

Source: Annual Report 2016, Consolidated Financial Statements 2015

http://www.habitat.org/sites/default/files/annual-report-2016.pdf

http://www.habitat.org/sites/default/files/consolidated-financial-statements-2015.pdf


Industry DynamicsHabitat For Humanity’s Income Growth

The Philanthropy 400, which annually ranks the nation’s largest nonprofit groups based on funds raised, has included Habitat for Humanity on its list for all 25 years of publication. Habitat for Humanity has consistently increased income each year since the list’s creation.

Year Philanthropy 400 Rank Income (in millions)

1991 257 $20.7

1997 10 $336

2003 22 $718

2009 15 $1,334

2016 20 $1,700


20%

25%

30%

16 - 24 y.o. 25 - 34 y.o. 35 - 44 y.o. 45 - 54 y.o. 55 - 64 y.o. 65+ y.o.

Vo

lun

tee

rism

as

% o

f U

.S. P

op

ula

tio

n

2011 2015

Industry DynamicsVolunteers

Volunteerism has decreased across America across age groups, and young people volunteer at lower rates than older generations.

VOLUNTEERS

About 62.6 million people volunteered at least once in 2015.

The volunteer rate for men is 21.8% and for women is 27.8%. Married persons volunteer at a high rate (30%) than those that never marry (20%). Parents with children under 18 were more likely to volunteer (31.3%) than persons without children (22.6%).

Volunteers spent a median of 52 hours on volunteer activities in 2015.

Most volunteers were involved with either one or two organization.

In 2015, the main was most frequently religious (33.1%), followed by educational or youth service related (25.2%). Another 14.6% performed activities mainly for social or community service organizations.

Volunteerism By Age Group 2011 – 2015

Source: Pew Social Trends, Giving USA, Bureau of Labor Statistics

http://www.pewsocialtrends.org/files/2010/10/millennials-confident-connected-open-to-change.pdf

https://givingusa.org/

http://www.bls.gov/news.release/pdf/volun.pdf


Industry DynamicsBeneficiaries

All kinds of families can quality for Habitat for Humanity’s homeownership programs.

Matt and Valentina moved into their purple Habitat house this past spring and are committed to becoming anchors in their new neighborhood in New Orleans.

The couple lives a few minutes from Musicians’ Village, a neighborhood dreamed up more than a decade ago by musicians Harry Connick Jr. and Branford Marsalis with New Orleans Area Habitat to support families and preserve the city’s musical roots.

“I had not entertained the possibility of owning a house because I haven’t made all that much money, and we didn’t think we could afford one,” Matt says. “Once it became a possibility, it was super exciting. We are able to commit and invest in this home and have something for our future. And it is important to have neighborhoods in New Orleans where people know each other and look out for each other.”

Asaad and his wife, Nagham, left Iraq in 2003 because of their son. Today, the family lives in a Habitat home on a quiet street in Des Moines and Bashar, now 14, is a star student.

The family spent several years in Jordan before immigrating to the United States. Once in Des Moines, some Iraqi families applying to partner with Habitat asked Asaad if he would help them translate. Asaadthen qualified for an affordable mortgage with Des Moines Habitat.

Asaad also likes the feeling he gets from volunteering with Des Moines Habitat, interviewing prospective families. “Sometimes I attend the house dedications and take pictures,” he says. “I do this because I feel I owe Habitat a lot. I worked my whole life to help others. Maybe that is just a part of me.”

Momajon and Karim were able to build their house at one go with the help of low-interest loans from a microfinance bank and construction planning from Habitat Tajikistan. “We built our house from scratch,” says Momajon, who shares her home with extended family and her grandchildren.

Momajon sells clothes at the local bazaar, and Karim draws a policeman’s pension. They had been living in a place where they shared bathrooms and kitchens with other families and struggled to send their children to college. Now, through a series of short-term loans, they have an affordable home and a comfortable life. “We always dreamed of owning our own home,” Momajon says.

Source: Habitat Stories

http://www.habitat.org/stories

30

SECTION FOUR:

HFHI In Action

32Copyright © 2016 Accenture All rights reserved.

HFHI In ActionVolunteer Journey

Cultivating volunteer relationships generally moves through 5 stages and although it isn’t a linear process, organizations generally want relationships moving up the curve with the ultimate goal of helping solicit partnership commitments, volunteers, and donors

Sample Volunteer Engagement Options

Strategies Level High Involvement Less Involvement

Enable Volunteer Actions

Commit

Volunteer joins habitat leadership, organizes events, solicitspartnerships, gives at a higher level

Volunteer is actively involved in all aspects of volunteering, solicits partnerships, is an Habitat advocate

ArticulateValue Prop

Buy-In

Volunteer becomes an Habitat Champion, attending Habitat long-term events, volunteering & donating

Volunteer recruits others for builds, organizes giving campaigns, is an Habitat advocate

Understand

Volunteer attend builds or other events semi-regularly, donates in small amounts

Volunteer attends a couple events, donatesthrough employer or other campaigns

Engage Volunteers

Aware

Volunteer takes Habitat calls/ meetings iscurious to learn more

Volunteer reads Habitat learns andcomes to an event

Unaware

Volunteer receives school email about Habitat, visits website and attends event

Volunteer encounters Habitat via school email

Buy-InDemonstrate willingness to embrace and further the goal

Leve

l of

Co

mm

itm

ent

Time

UnawareLack of knowledge of the goal; first encounter

AwareKnowledge of the goal, but unclear of scope, depth, full impact or rationale

UnderstandComprehension of the nature and intent of the goal and where they ‘fit in’

CommitmentLong-term goal engagement

Today, Habitat has a steady supply of volunteers, but many come and go without forming a strong connection to the organization and its mission

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