Habitat for Humanity East Bay

Annual Report

Please click here to view our 2011 Annual Report.

Fiscal Responsibility

At Habitat East Bay, we take pride in using donor dollars wisely. We steward contributions efficiently and effectively, invest the vast majority of donor dollars in on our housing programs, and allocate only a small percentage of funds to overhead expenses. Our funders include individuals, corporations, foundations, and faith organizations, and we receive grants and no-interest redevelopment agency loans from local government sources. Financial information is available by viewing our most recent audited financial statements and IRS Form 990 submission.

Our EIN (Tax Identification) Number

Habitat for Humanity East Bay’s EIN number is 94-3053687. We are an active 501(c)3 nonprofit in full compliance and in good standing with the IRS. If you have any questions regarding our status as a 501 (c)(3) nonprofit organization, please call (510)-251-6304 x310.

A Word about Expense Ratios and Charity Navigator Ratings

Nonprofit organizations are often evaluated on their expense ratio, which is the percentage of their budget that is allocated to administrative and fundraising overhead expenses in relation to their total expenses. Generally accepted accounting principals mandate that we account for our program costs in a way that may cause confusion when interpreting our expense ratio.

The total cost of building a home is realized in our financials when the home is sold, and not throughout the duration of construction, which adds a significant one-time program expense on the date of sale. This one-time program expense is magnified because we typically build, and then sell, numerous homes simultaneously. It is not uncommon to fund construction of a large development throughout the duration of a fiscal year, and then to finish and sell the homes, and realize the program expenses, in the following fiscal year. As a result, the amount of program expenses calculated, and thus our expense ratio, can fluctuate significantly from year to year.

Charity Navigator is a third party independent nonprofit watchdog organization that evaluates the fiscal responsibility of non-profit organizations. Charity Navigator has recently dropped our rating from a perfect "four" to a "two," based on our 2009 IRS Form 990 financials. Our 2009 Form 990, which covers Fiscal Year (FY) 2010, represents a year in which we incurred expenses to build numerous homes that weren’t sold until they were completed the following year. This resulted in an unusually high overhead expense ratio of 24.1% for FY 2010, and an unusually low overhead expense ratio of 7.8% for FY 2011. Our three-year average, taking into account FY 2009, FY 2010, and FY 2011 expenses, is 11.7%, well below the industry standard of 25%. Please see the graph below, noting the consistent overhead expenses and the fluctuating program expenses.

If you have any questions regarding our Fiscal responsibility, please call (510)-251-6304 x310.