August 2011 Resource Development Committee Meeting

1. Maximizing the Construction GIK Opportunity Driving Down the Cost of Home Construction and Repair

3. Joe Allwein, Board Chairman/Habitat for Humanity of The Chesapeake

4. Bert Green, Executive Director /Habitat for Humanity of Charlotte, NC

7. GIK/A CORPORATE PARTNER’S PERSPECTIVE Dick Seitz Valspar corporation Director of Customer Service & Training

8. Valspar’s Impact on our Mission National partner since 1979. In 2003 committed to over $45 million in cash and GIK donations. In 2007 kicked off the national launch of ABWK in Los Angeles. Supplies discontinued paint that can be resold in ReStores. Valspar Foundation shares our mission of providing affordable housing in the neighborhoods we live and work.

9. LOCAL GIK PROGRAM JOE ALLWEIN BOARD PRESIDENT HABITAT FOR HUMANITY of the CHESAPEAKE

11. Local GIKs very limited – No Focus

12. House cost reduction not important

13. Development resources devoted to raising cash revenue, not GIKs

14. Prior to 2007, GIKs per house averaged less than $7,000 per house including national and local partners2

16. Buy in by ED/Board and Construction Department

17. Acceptance of vendor turnover

18. Rank house costs starting from highest

19. Understanding of HFHI brand value

20. Tie in to ReStore donations3

22. Generally, existing vendors will not be new GIK partners

23. Break out material from labor on major trade subcontractors for separate GIKs

24. Always ask for everything to be donated4

26. Ask for one (1) year commitment

27. Understand economic conditions of market/industry (Discount vs. Donation)

28. Be flexible on partnership (i.e. Labor donated but material at cost)

29. Use suppliers purchasing leverage with their supply chain

30. Offer to educate GIK partners’ employees on Habitat mission/brand 5

31. GIK STRATEGY RESULTSas of DECEMBER 31, 2010 Plumbing 2,500 Insulation 1,800 HVAC 2,500 Concrete 500 Flooring 3,000 Electrical 2,500 Windows 1,700 Drywall 1,500 Cabinets 500 Fencing 700 Dumping Fees 1,500 Portable Toilets 425 Softwood Lumber 4,000 Other HFHI GIK 3,300 TOTAL $26,425 Historical GIK $7,000 GIK Increase $19,425 EST. HOUSE COST $65,000 NOTE: (1) Based on rehabbed house construction costs excluding land acquisition cost (2) Land acquisition costs now less than $5,000 per house 6

33. Identify resource for GIK program

34. Analyze potential companies

35. Meet with decision-maker(s)

36. Ask for a donation

37. Be prepared to change vendors

38. Use ReStore as part of GIK construction strategy

39. Don’t accept market pricing on purchased materials or services!7

40. GIK JOB REQUIREMENTS Able to relate to business owners Ability to identify right GIK partner Understand how to market brand value Passion for Habitat 8

41. Thanking Our National Gifts In-Kind Sponsors

42. In-Kind Cost Savings

44. Charlotte Pipe & Foundry

45. Christian Plumbing Co.

46. Colonial Materials

47. Edifice, Inc.

48. Hunter Douglas

49. Island Boyz

50. Larson Manufacturing

51. McDowell Excavating Inc.

52. M/I Homes

53. Morris Jenkins Co.

54. Thomas Pest Control

55. Shepherd's LM

56. Southern Energy Management

57. Standard Pacific Homes

58. Starr Electric Co.

60. Sponsors’ Website Links Dow: http://www.dow.com/habitat/ Ferguson: http://www.ferguson.com/corporate.shtml Schneider Electric: http://www.schneider-electric.us/sites/us/en/company/community/habitat-for humanity/habitat-for-humanity.page Valspar: http://www.valsparpaint.com/en/about-us/habitat-for-humanity.html Whirlpool: http://www.whirlpoolcorp.com/responsibility/building_communities/habitat_for_humanity.aspx Yale: http://www2.yalelock.com/Yale/Templates/LocalNormal____3814.aspx

61. Sponsors’ Contact Information

62. Draft of Proposed Signage for Habitat Charlotte ReStores Signs thanking our sponsors will appear soon in both of our ReStores.

63. Yard sign, front Thank you to our other sponsors: and back

65. MAXIMIZING CONSTRUCTION GIK Driving down the cost of home construction and repair Steve Sferrino VP CaRE Greater Los Angeles

66. Know Your Cost Determine True cost to Build 2008 - $106,250 = $85sf GIK Goal 20% = $21,250 net cost $85,000 Establish goal per house GIK value 2009 - $115,000 = $ 92sf GIK Goal 20% = $23,000 net cost $92,000 Develop Tracking Measures 2010 - $125,000 = $100sf GIK Goal 25% =$31,250 net cost $93,750

67. Taming Increasing Costs with GIK Cost of building increases by approx $10,000 per year net increase is only $1750 due to increased GIK

68. Identify Needs and Sources

70. Consider Prospect Buy-In

71. Identify Decision-Maker

72. Emphasize Habitat for Humanity’s Mission

73. Highlight Green Initiatives

75. Utilize NSP Funded Projects as ROI to Donor

77. Record Gift Values

78. Maintain Accurate Records

79. Assess Areas of Need

81. DEDICATED RESOURCE Jessica Killeen GLA’s AmeriCorps VISTA GIK Coordinator Identify Capacity for Dedicated Resource to Develop and Implement Program (AmeriCorps VISTA, Volunteer, Intern, Committee and/or Staff)

83. Provide Appropriate Tax Documentation

84. Involve Donor in All Affiliate Special Events

85. Publicize through Print and E-media

86. Highlight Partnership through Onsite Signage

88. Why Focus on GIK? Joe MulveyHFHI Regional Director

89. HFHI GIK Initiative designed to: Leverage successful relationships between HFHI and donors like Dow, Whirlpool, Schneider Electric, Valspar and others Increase GIK use both from national and local GIK partners Focus on cost reductions GOALS: Reduce costs (cash outlays by affiliates) Generate unrestricted cash (With ReStore) [I will focus only on GIK for House production in this section – but recognize that GIK for ReStore is vital) National Affiliate Conference • No Hands But Yours

90. What’s changed since last conference? Economy Donations Down Increased demand for GIK National Affiliate Conference • No Hands But Yours

91. For Many National GIK Donors Still less than optimal utilization of GIK by affiliates: Many reasons for low utilization: Lack of Communications between HFHI and affiliates Affiliates not focused enough on cost reduction opportunities using GIK Overall planning and logistics, order entry system complexities Many smaller affiliates find utilizing GIK more difficult than large affiliate National Affiliate Conference • No Hands But Yours

92. Cash versus GIK? Is it an either/or? How about “BOTH”!

93. Cash is top lineGIK is bottom line Bottom line with enhanced GIK–yields more families served!

94. If you are not focused on GIK and other cost reductions: It’s a symptom that the affiliate leadership (ED and Board) are missing a good opportunity

95. If you are focused on GIK and cost reduction: 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!

97. Affiliate leaders on this panel are benchmarks in the country in cost management and GIK leadership

99. Summary GIK utilization is Growing - GIK donors can be migrated to give Cash as well- Keep focus & sense of urgency on GIK to reduce costs Thank YOU to all our GIK donors National Affiliate Conference • No Hands But Yours

100. Contact Information Dick Seitz dseitz@valspar.com612-851-7767 Joe Allwein jdallwein@aol.com443-925-1173 Bert Green bgreen@habitatcharlotte.org 704-716-7068 Steve Sferrino ssferrino@habitatla.org310-324-4206 Joe Mulvey jmulvey@habitat.org 847-991-0369 Drew Meyer dmeyer@habitat.org 404-420-6762