Rating reports

Homeless International
Input

Chief Executive Larry English ran an architecture and urban planning practice in South Africa. At the same time, he was establishing Habitat for Humanity (H for H) in South Africa as a volunteer. Invited to join the board of H for H International, he was then recruited to establish H for H’s urban programme in Africa and the Middle East, before joining HI in 2007. Other key staff have been with HI for many years and have extensive experience in the sector. The charity’s Council of Management includes several professionals with past housing finance and urban renewal backgrounds as well as a development planner, a business development and finance specialist, and housing-related academics.

Key Financials

Year end 31 March (£000s) 2005 2006 2007 2008 2009E
Income
Project restricted income 1,952 1,418 1,290 1,712 2,290
Unrestricted income 300 353 556 234 160
Investment income 62 86 88 118 100
Total income 2,314 1,856 1,923 2,064 2,550
Expenses
Project expenses 1,052 2,633 1,857 1,783 2,350
Costs of generating funds 39 54 89 79 85
Administration expenses 187 79 134 148 200
Total expenses 1,279 2,765 2,080 2,011 2,635
Balance of project restricted funds 3,192 2,300 2,139 1,207 900
Reserves
370 368 505 622 300
Number of employees
11 11 12 12 12


Delayed receipts of grants around 2005/6 resulted in variations in income growth and reserves coverage in the period rather than this being caused by a significant financial issue. Deficits have occurred three times in the past five years, but the financial position is sound, with good reserves coverage at year end 2008. Financial efficiency has been maintained. A lower proportion of unrestricted income forecast for 2009 reflects fundraising staff changes during the year which interrupted publicity and the organising of events and treks.

Key ratios
2005 2006 2007 2008 2009E
Proportion of restricted income 84% 76% 67% 83% 90%
Proportion of income used on projects 45% 142% 97% 86% 92%
Programme ratio 82% 95% 89% 89% 89%
Administration ratio 15% 3% 6% 7% 8%
Fundraising efficiency 2p 3p 5p 4p 3p
Reserve development 39% 40% 124% 7% -52%
Number of months of cost coverage -4 5 9 10 2
Development Ratings estimates

In 2008, international grants to local partners were made as follows: Zimbabwe 22%; Ghana 15%; Malawi 12%; India 11%; Zambia 10%; Kenya & Pakistan 6% each; Namibia & Sri Lanka 5% each; and Tanzania 1%. General Africa grants made up the 6% balance.

In 2008, income was derived from the following sources: institutions 60%; trusts and foundations 20%; housing associations 4%; and the 16% balance from individuals and fees.

Average staff costs of £34,389 partly reflects the long standing experience of staff managing local partners. New CLIFF staff hires will have finance backgrounds, which could raise the average further.


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