Summer 2006
Looking Toward the
Future: A Message from
Habitat’s CEO
Dear Habitat Partner,
B
(Continued on page 2)
1
Legacies
D
orothy Birmele spent her life
helping people less fortunate
than she. Even after her passing,
her generous spirit is benefiting families
living in substandard housing through a
planned gift to Habitat for Humanity.
She passed away Mar. 17, 2004, after
living what Ruth Hartman, a special
friend of Birmele’s, describes as a modest life so that she would be able to help
families and children that were not as
fortunate as she. In addition, before her
death, Birmele created a living trust
stipulating that Habitat for Humanity
and 11 other nonprofit organizations
receive the proceeds from her estate
and the sale of her house.
“Dorothy lived a life of prayer and
sacrificial giving so that others could
know the love of God,” said Hartman,
who was also trustee of Birmele’s living
trust. “She desired to go without so she
could give more to others.”
That sacrifice improved the lives of
untold numbers of children and families
that are served by the twelve organizations that received funds from her estate.
Birmele was born in Bainbridge
Township, Mich., in 1918 and worked
with McDonnell-Douglas Corporation in
California and England for 28 years before moving to Hartford, Mich., in 1975
to care for her father. She lived in her
home on Haver Street in Hartford until
2001, when a stroke made it impossible
for her to live alone. Before the stroke,
Birmele wrote a living trust, establishing
Habitat for Humanity and the Federated
Church of Hartford—her home church—
as recipients of the proceeds from sale of
the home she loved so much.
The ten organizations that she
included in her living trust were:
Christian Freedom International,
Frontline Fellowship, World Challenge,
Hopegivers International, Voice of Hope
Ministries, The Rutherford Institute,
PHOTO SUBMITTED BY RUTH HARTMAN
ecause of rising land prices,
Habitat for Humanity finds it
increasingly difficult to obtain the
land it needs. Given our business
of building modest homes that are
affordable to low-income families,
it’s an obstacle we must, and do,
overcome. Nevertheless, Habitat
affiliates worldwide constantly
confront land costs and other landrelated barriers.
In the wake of Hurricanes
Katrina and Rita, entitled, buildable land has been and remains at
a premium in the affected areas. It
is one of our biggest challenges as
we strengthen our efforts to help
families recover their hope, lives
and houses.
However, an unprecedented
wave of support has allowed us to
secure both the land and infrastructure necessary to build more than
200 houses in the region. We are
making headway, as you can read
more about on page 2, and plan to
build 1,000 Habitat houses by July
2007. We hope to have another 1,000
sites ready for future building, but,
much more remains to be done and
more support is needed to make a
real impact in the Gulf Coast.
Far from Katrina’s wreckage,
families around the world face even
A Lifetime of Sacrifice
Mission Aviation Fellowship, Gospel
Revival Ministries, MAP International
and Life Outreach International. In
addition, Birmele sponsored children
through six organizations, and her
church family has taken over those
sponsorships in her honor.
And, because of her generosity,
Hartman believes Birmele will be remembered long after her passing.
“Dorothy’s legacy will live on
through the lives she touched and the
ministries she loved, prayed for and
remembered in her living trust.”
By Kara Loftin, writer/editor, HFHI
(Continued from page 1)
Operation Home Delivery
I
n late 2005, Hurricanes Katrina and
Rita brought far-flung devastation
to people and property in Louisiana,
Mississippi, Alabama and Texas.
Hundreds of lives were lost and more
than 500,000 homes were damaged or
destroyed.
The extent of the damage caused
by these storms called for an unprecedented response from Habitat
for Humanity. To meet the demand
for services, Habitat for Humanity
International launched Operation
Home Delivery (OHD) and has been
at work in the months since building
STEFFAN HACKER
worse crises as they struggle to
find affordable land. Failing that,
they create informal slum settlements on land that isn’t theirs and
that they risk losing—along with
their makeshift housing—when
the owner declares they are no
longer welcome. Without adequate
water and sanitation, these settlements are unhealthy, and often
dangerously sited in the shadow of
garbage dumps, along the slope of
riverbanks, within arm’s length of
railroad tracks.
These families recognize the importance and value of land. Habitat
shares their realization and seeks to
work with them, not only to build a
decent, affordable home they can
own, but to build it on land to which
they can lay legal—and permanent—claim as well.
Whether it’s the northeastern
U.S., southeast Asia—or anywhere
in between—land is both wanted
and needed. But for those who
don’t have it and can’t afford it or
a decent house to build on it, land
takes on a special meaning to which
it’s difficult to affix a price tag. It
means permanence and stability; it
means promise, hope and, ultimately, access to a better life.
To find out how you can help
Habitat partner families secure
land, homes and a brighter future,
please contact Planned Giving at
(800) 422-4828, Ext. 2253, or visit
www.habitat.org/giving/planned for
information about Habitat’s planned
giving programs and opportunities.
Thank you for caring.
Update:
Future homeowner Tina Fangui and her son
Lucas Lecompte in front of their near complete Habitat house at Bayou Area HFH.
houses and communities, as well as a
strong foundation for work that will
continue for months and years into the
future.
In recent months, Habitat and OHD
have made great strides in building
homes and communities throughout the
U.S. Gulf Coast. To date, more than 200
new homes are inhabited or being constructed in partnership with hurricaneaffected families. Currently, Habitat is on
track to build approximately 1,000 houses
by mid-summer 2007.
Land is the key for Habitat to
build capacity and homes. Habitat has
acquired enough land in the affected
areas for nearly 500 lots, but in order
to accomplish the 1,000-house goal, an
additional 500 lots must be acquired and
developed. Thousands more lots will
also be needed to facilitate preparation
for building beyond our initial goal.
While Habitat is actively searching for
developed land on which houses can be
built, Habitat is also interested in property that could be developed over time.
Habitat anticipates acquiring land
in three basic models: 1) single lots
that will be donated or acquired from
Sincerely,
2
Legacies
STEFFAN HACKER
Jonathan Reckford,
Chief Executive Officer
Habitat for Humanity International
AmeriCorps members from around the Southeast work along with local volunteers to build
multiple houses in Mobile County, Ala., during the annual AmeriCorps Build-a-Thon.
STEFFAN HACKER
STEFFAN HACKER
individuals; some donations may come
from new partner families, 2) improved
lots that will be donated or acquired in
groups to allow immediate building of
clusters of homes, and 3) raw land that
will be acquired, preferably by large
private builders receptive to working
with Habitat, and be developed for
construction.
Habitat models and other affordable
housing models will be combined with
market-rate housing and commercial
uses to be developed into mixed-income, mixed-use communities. A
land acquisition marketing campaign
continues and is being combined with
other public information efforts to increase the visibility and understanding
of Habitat for Humanity, its mission,
and the impact that homeownership
has for the families served.
Above: Recently completed Habitat house on Delachaise Street in New Orleans. Directly Above:
Complete and near-complete Habitat houses in “Hope Village,” a development being built by
HFH St. Tammany West in Covington, La.
‘I’m Taking You Out of My Will…’
H
abitat for Humanity’s planned giving department answers many calls from folks who want to
remember Habitat in their estate plans, so I was
somewhat taken aback to learn that a regular donor was
removing Habitat from his plans. But once he explained
his reasons, they made a lot of sense.
It turns out that our Habitat partner is a retired CPA who
was looking for tax-wise ways to continue building homes
after his lifetime. He realized that the $10,000 bequest in his
will didn’t provide any lifetime income tax deduction, but
that at his age 75, a $10,000 Charitable Gift Annuity would
generate a deduction of more than $4,700 while paying life
income at a rate of 7.1 percent. Furthermore, of the $710
received each year from the annuity, more than half of the
payment would be free from income taxes for the first 12
years.
Our friend further explained that, just like a bequest,
the funds remaining in the annuity after his lifetime
would be released to Habitat for Humanity to build more
houses. However, he had one last concern regarding the
remainder amount of the annuity after his lifetime. He
observed that 7.1 percent is a very attractive rate, and
that if the annuity portfolio earned less than that amount,
the amount remaining after his lifetime would be somewhat less than the original $10,000. I explained that this
is in fact usually the case, that gift annuity rates are set
with the assumption that the remainder will be at least
50 percent, and that Habitat’s experience has been about
70 percent, so a gift annuity amount of $15,000-$20,000
would seem to be appropriate.
Shortly thereafter we received a $20,000 check to set
up the annuity. In a note attached to the application, our
new annuitant explains that he is delighted to have all
the benefits of the annuity while still supporting Habitat
for Humanity beyond his lifetime, and that he feels he is
doing well by doing good.
If you are interested in learning how a gift annuity might work out for you, please contact us at (800)
HABITAT, extension 2253, or plannedgiving@habitat.
org. If you’d rather do the research on your own, please
consult the Planned Giving Calculator at www.habitat.
org/giving/planned.
By Robert Schmidt, CFP, Director of Planned Giving, HFHI
Summer 2006
3
Habitat for Humanity
Legacy Society
T
Contact us
There are several ways you can
find out more information about
planned giving:
Write:
Planned Giving Department
Habitat for Humanity International
121 Habitat Street
Americus, GA 31709-3498
Call: (800) 422-4828, Ext. 2253
E-mail: [email protected]
Web: www.habitat.org/giving/
planned
4
Legacies
STEFFAN HACKER
he Habitat for Humanity
Legacy Society recognizes
the importance of legacy gifts in
eradicating poverty housing. To
become a member of the Habitat
for Humanity Legacy Society, you
must plan to benefit Habitat after
your lifetime—whether in the form
of a bequest, annuity or other
planned giving arrangement—and
notify Habitat of your plans.
Habitat for Humanity welcomes
these new members to the Habitat
for Humanity Legacy Society:
Claire Cashman
Dr. Fabian Schupper
Gerald and Sharon Schmidt
Keith M. Pearson
Nancy Latner
Dr. Margaret R. McLean
Harriet C. Whately
Grace S. Hinkley
Jean R. Hildenbrand
Charles Carter, Sr.
Susan Spadinger
Marcella Frank
If you have questions about
the Habitat for Humanity Legacy
Society or would like to join, please
contact the Planned Giving department at (800) HABITAT Ext. 2253, or
[email protected].
Luxury Institute Gives
Habitat Highest Rating
I
According to the Luxury Institute,
n February 2006, Habitat for
the LBSI surveys wealthy consumers in
Humanity received top honors from
the U.S., using four “pillars” of value:
a survey conducted by the New York• consistently superior quality,
based Luxury Institute. The institute’s
• uniqueness,
Luxury Brand Status Index (LBSI) rated
• people who are admired and re34 nonprofits on their worthiness for a
significant donation, and Habitat received
spected donate to this nonprofit, and
top honors for uniqueness and the high• donating to this nonprofit contribest rating in terms of overall reputation.
utes to a great cause.
The Luxury Institute conducted
Based on these four pillars, the
LBSI research for leading non-profit inLBSI found that Habitat for Humanity
stitutions among
was the most
consumers with
recognized
a net worth of at
and respected
Habitat for Humanity’s
least $5 million.
nonprofit among
Ranking Among Its Peer
90 percent of the
the 34 organizaInstitutions
people surveyed
tions measured
• Uniqueness—Habitat ranked #1
are or have been
in the survey,
• Consistently superior
contributors to
ranking above
quality—Habitat ranked #2
one or more of
such renowned
• Donating to this nonprofit
the non-profit orinstitutions as
contributes to a great cause—
ganizations in the
the Salvation
Habitat ranked #2
last 18 months.
Army, Public
• People who are admired and
“The results
Broadcasting
respected donate to this
of this survey
System and St.
nonprofit—Habitat ranked #3
demonstrate that
Jude’s Children’s
Habitat is having
Hospital.
an impact on the
Overall, the
communities it serves,” said Habitat for
survey respondents felt Habitat and
Humanity International CEO Jonathan
its mission of eradicating substandard
Reckford. “The dedication of Habitat
housing worldwide are the most recognized and respected among its peer
volunteers, staff and partners worldwide is remarkable, and the survey is
organizations, making Habitat one of
evidence that potential donors recogthe premier non-profit institutions in
nize that commitment.”
the U.S.