2014 Annual ReportHabitat for HumanityNorth Central Georgia

FROM OUR BOARD CHAIRMAN & CEO

“Thanks again to our Good Lord’s providential grace

and the generous financial support of our house

sponsors and donors.”

Spreading God’s Love in 2014

Thanks to the grace of the Good Lord and the support of our donors and volunteers, 2014 brought continuing success to Habitat for Humanity - North Central Georgia.

First and foremost, we completed 16 homes in 2014, providing affordable housing to 64 family members (including two infants born during their parents’ builds) whose lives will be forever changed by their improved living conditions and, for the children, a stable home environment and access to better schools. As of the end of calendar 2014, Habitat-NCG had built or rehabbed 260 homes serving an estimated 1,000 family members, with 5 more homes and a rehab under construction.

Second, we have embarked on a new home repair program to better serve our local communities. The increasing cost of land has made it virtually impossible for our ministry to construct new homes in some of the areas we serve, particularly North Fulton. Thus, in order to continue to help mitigate the affordable housing crisis within our service area (and it is a crisis), we initiated a Home Repair Program to offer families in need the opportunity to have repairs performed on their homes – everything from weatherization, to exterior painting and repairs and refreshed landscaping, to critical interior, HVAC, and roof repairs. We laid the groundwork for this program in 2014, and we are now ready to fully launch our repair efforts. We are hopeful, in particular, that our repair program will provide assistance

to seniors on fixed incomes and military veterans.

Third, we closed our ReStore operation in Canton and, with capital provided by Habitat for Humanity International, we are – as we write this – in the process of opening a new ReStore in Roswell. Habitat ReStores accept and re-sell donations of new and “gently used” building materials, appliances, furniture, and household goods, and we believe this move to our new location in a vastly larger facility will generate significantly greater funds to both support our ministry and Habitat for Humanity International’s global building efforts.

All in all, we enjoyed – thanks again to our Good Lord’s providential grace and the generous financial support of our house sponsors and donors, along with the sometimes Herculean efforts of our volunteers and staff (remember “Snowmageddon”) – a great 2014. We thank you deeply as we continue to fulfill our mission: “Seeking to put God’s love into action, Habitat for Humanity brings people together to build homes, communities, and HOPE.” . . . and we do it with a “hand-up, not a hand-out.”

Chief Executive OfficerRuss Hayes

Chairman - Board of DirectorsBrad Beard

1 newrepair

program

2,200The approximate number of volunteers that helped hammer nails, hang drywall, paint siding, plant trees, and review applicants in 2014.

We started construction on 14 new homes in 2014 and completed two

projects through our new Home Repair Program.

14 + 2260

The number of homes built and rehabilitated by Habitat-North Central Georgia within our service area of North Fulton, Forsyth, Cherokee, and Dawson Counties since our founding in 1995.

Habitat for Humanity-North Central Georgia donates a tenth of undesignated gifts to support the construction of Habitat for Humanity homes around the

world. Since our founding in 1995, we have

funded the construction of 185 homes overseas.

185

God is not unjust; he will not forget your work and the love you have shown him as you have helped his people and continue to help them.Hebrews 6:10

64Families members served in 2014, including 37 children

ranging in age from a few weeks old to 16.

BY THE NUMBERS

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Spread Full photo with small story

Many hands truly do make for light work on a Habitat for Humanity build, and amid the dust, paint, dirt, rocks, and sometimes chaotic energy of the worksite, friendships and relationships are formed between partner families and volunteers of every age, nationality, and background as everyone works alongside one another with the common goal to love thy neighbor. As partner families meet one another during the Habitat for Humanity process, they build friendships knowing that, within a few months, they will become neighbors who can call and rely on one another. Volunteers form bonds with partner families and continue that relationship beyond the dedication. One recent volunteer with a background in art education painted a mural on the walls of the children’s bedrooms after helping to build that family’s home. It is these relationships that contribute incalculable impact for every home built by Habitat for Humanity. Each completed house represents more than one family served, it represents an entire community of people who have been transformed by the experience of helping others.

A LEGACY OF FRIENDSHIP

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OUR AUDITED FINANCIALSHabitat for Humanity - North Central Georgia Financial Highlights

Current Assets

Cash and cash equivalents

Prepaid expenses

ReStore inventory

Construction in progress

Land held for development

Grants receivable

Current portion of mortgages receivable, net

Contributions receivable

Due from related party

Other receivables

Total current assets

Property and Equipment

Property and equipment, net

Other Assets

Assets

Mortgages receivable, net, less current portion

2014 2013

$317,444

$396,324

$96,753

$213,495

$124,132

$94,814

$31,685

$10,452

$754,521

$38,356

$2,077,976

275,349

206,742

144,155

158,401

19,000

85,390

24,052

9,090

796,598

1,600

1,720,377

$27,581 39,335

$6,654,107

$8,759,664

6,605,445

8,365,157

Current Liabilities

Long-Term Debt

Net Assets

Total Liabilities and Net Assets

Total current liabilities

Total long-term debt

Current portion of notes payable, net

Notes payable, less current portion

Unrestricted

Capital lease, less current portion

Temporarily restricted

Total net assets

Homeowner escrows

Unearned revenue

Deferred revenue

Line of credit

Accounts payable

Current portion of capital lease

Accrued expenses

Homeowner deposits

$96,473

$2,224

$ -

$52,049

$7,395

$12,500

$186,837

$27,574

$94,762

$2,295,121

$4,255

$2,299,376

$5,306,506

$673,968

$5,980,474

$8,759,664

$479,814

76,924

2,158

100,000

43,046

4,669

11,250

189,350

23,838

130,343

2,369,359

6,479

2,375,838

4,887,417

520,324

5,407,741

8,365,157

581,578

AUDITOR’S STATEMENT

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To the Board of DirectorsHabitat for Humanity-North Central Georgia, Inc.Roswell, GA

We have audited the accompanying financial statements of Habitat for Humanity-North Central Georgia, Inc. (a nonprofit organization), which comprise the statement of financial position as of June 30, 2014, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United State of America; this include the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Habitat for Humanity-North Central Georgia, Inc. as of June 30, 2014, and the change in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the

United States of America Report on Summarized Comparative Information.We have previously audited Habitat for Humanity-North Central Georgia, Inc.’s 2013 financial statements, and our report dated October 29, 2013, expressed an unmodified opinion on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2013, is consistent, in all material respects, with the audited financial statements from which it has been derived.

Alpharetta, GeorgiaOctober 3, 2014

WHY WE BUILD

On its face, housing is simple. It provides a roof overhead, walls for protection from the wind and outdoors, and a place to lay your head at night. In many other ways, though, housing is more complicated. A person’s housing can affect one’s sense of self, security, and well-being. Housing is especially important for children’s development and growth. Children who are stressed from housing insecurity typically perform worse in school and may experience behavioral issues. The European Union considers children “severely materially deprived” when their household struggles to make rent or mortgage payments, to afford utility bills, and to have the ability to keep their home warm in cooler months. UNICEF’s annual report card on children titled Children of the Recession: The impact of the economic crisis on child well-being in rich countries found that between 2008 and 2012 child poverty increased in 34 of 50 U.S. states including Georgia. With 13 million foreclosures occurring in the United States during this time, many families with children became housing insecure with limited housing options as credit qualifications were tightened and the rental market became more competitive.

Housing needs exist in every community, including our own, and many families in North Central Georgia face these obstacles. According to the United States Census Bureau’s 2013 American Community Survey, 10% of families with children in North Fulton, 13% of families with children in Cherokee County, and 8% of families with children in Forsyth County are living below the poverty line with many more families living at the poverty line or just above it. Habitat-North Central Georgia builds affordable housing for working families, which gives them the foundation they need to be successful. With a stable home, children can focus on doing well in school and participating in extracurricular activities, and parents can focus on supporting their children instead being evicted. Affordable housing provides the basis that allows families to thrive.

Building a Strong Foundation

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$50,000 & AboveThe UPS Foundation ∙ Schoen Insulation Services ∙ Mount Bethel United Methodist Church ∙ Thrivent Builds ∙ Publix Super Markets Charities

$25,000-$49,999Saint Brigid Catholic Church ∙ Enercon ∙ Canton First United Methodist Church ∙ Mount Pisgah United Methodist Church ∙ Roswell Presbyterian Church ∙ Verizon Wireless

$10,000-$24,999Schneider Electric ∙ Lutheran Coalition for Habitat ∙ Abney Family Foundation ∙ MetLife Volunteer Project Fund ∙ Travelers ∙ Birmingham United Methodist Church ∙ Cisco Foundation ∙ Saint James United Methodist Church ∙ Siemens ∙ Hickory Flat United Methodist Church ∙ Access Management Group ∙ ADP Foundation ∙ Alpharetta First United Methodist Church ∙ Bank of North Georgia ∙ Blessed Trinity Catholic High School ∙ First Baptist Cumming ∙ Joe E. Johnston Foundation ∙ Kimberly

∙ Elizabeth Grinnell ∙ Evans Insulation Company ∙ Garrard Construction ∙ I.D.S.I Products of Georgia, Inc. ∙ Liberty Mutual ∙ John Durkota ∙ Northbrook United Methodist Church ∙Rotary Club of Windward ∙ Santi & Associates, PC ∙ Steven Buckner $500-$999Susan Goetting ∙ Cross of Life Lutheran Church ∙ Anice & Alice Foster ∙ Lawrence Duff ∙ Anonymous ∙ Bobbie Adamczyk ∙ Cohen, Pollock, Merlin & Small PC ∙ Forsyth Roofing, LLC ∙Talbots ∙Barrett & Colleen Jones ∙ Joel & Frances Webb ∙ Frank Lemond ∙ Helen Creagan ∙ James Lawrence Pfaffenberger ∙ John & Mary Bolthuis ∙ JW Property Group ∙ Legacy Machinery, Inc. ∙ Snellings Walters Insurance Agency ∙ Ron & Elnora Burton ∙ Rotary Club of Canton ∙ Shont Miller ∙ Temple Beth Tikvah ∙ Tricia White ∙ TROX USA

$250-$499Kroger ∙ William & Judy Fogarty ∙ Milton High School ∙ Roswell United Methodist Church ∙ Jillian Walsh ∙ William & Connie Lollis ∙ New Hope United Methodist Church ∙ David McPherson ∙ Cathy Berggreen ∙ Mr. &

Clark ∙ Mount Zion United Methodist Church ∙ Patterson Barclay Foundation ∙ PCL Industrial Construction Co. ∙ Zion Missionary Baptist Church

$5,000-$9,999State Farm ∙ Saint Aidan’s Episcopal Church ∙ Saint Thomas Aquinas Catholic Church ∙ Northminster Presbyterian Church ∙ DataScan ∙ Goodman Networks ∙ Anonymous ∙ Transamerica ∙ Davon White ∙ Alcon ∙ William & Kaye Phinney ∙ Cherokee Association of REALTORS ∙ OCI Enterprises ∙ Church of the Good Shepherd ∙ Citrix Systems, Inc. ∙ The Eyl Family ∙ Lowe’s ∙ Hillside United Methodist Church & the North Georgia United Methodist Housing and Homeless Council ∙ Saint David’s Episcopal Church ∙Shiver Hamilton ∙ SR Homes ∙ United Way of Forsyth County ∙ Windsong Properties ∙ The Villas at Canterfield

$2,500-$4,999Ryder ∙ Steven & Carlyn Romeyn

Mrs. Geoff Rausch ∙ Envoy Mortgage ∙ James & Lori Rausch ∙ JC & VL Manstrom ∙ Olympus Dollars for Doers ∙ Sequoyah High School ∙ Craig & Patricia Hunt ∙ Warren Thomas Strong ∙ CaraVita Home Care ∙ Colleen Fogarty ∙ Edmund LaHouse ∙ Franz Bobbert ∙ John Longino ∙ Krempel Insulation Technologies ∙ Lauren Giacopelli ∙ Liberty Pultrusions ∙ Lee Presto ∙ Penny Tinkler ∙ Roswell High School ∙ The Silzle Family ∙ Susan Joseph ∙ The Lubrizol Corporation ∙ The Tomlin Group

In-Kind Contributors

AccuAir ∙ Allgood Pest Solutions ∙ A.R. Henson & Associates ∙ Champia Real Estate Inspections ∙ Energy Vanguard, LLC. ∙ Forsyth Roofing ∙ Gleichman Law Firm, LLC ∙ Hugh Glidewell & The Landscape Guys ∙ North Georgia Brick ∙ North Georgia Grading ∙ Roswell United Methodist Church ∙ Shultz Properties, Inc. ∙ Stoke Real Estate Appraisal Services, Inc. ∙ Xcentric

National In-Kind Partners

Dow Chemical Company ∙ Ferguson Enterprises, Inc. ∙ Hunter Douglas

∙ Allison S. Mann ∙ Rotary Club of Roswell ∙ Johns Creek United Methodist Church ∙ Fortune-Johnson General Contractors ∙ Ingenico ∙ LexisNexis ∙ Michael A. Martin ∙ KeyWorth Bank ∙ New York Life ∙ Samuel McKnight ∙ Cumming First United Methodist Church & the North Georgia Housing and Homeless Council ∙ Roswell Woman’s Club ∙ Russell & Kim Hayes

$1,000-$2,499Rotary Club of Canton ∙ Creekview High School ∙ Timothy & Kathy McCollum ∙ Anonymous ∙ AutoTrader.com ∙ Scott C. Dozier ∙ Equifax Foundation ∙ Fiona Eastwood ∙ Anonymous ∙ Norplex-Micarta ∙Turf Masters Lawn Care ∙ Michael & Kristyn Johnson ∙ Frank & Velyna Johnson ∙ Catherine Kahn ∙ Dr. John & Rebecca Spicer ∙ Gerome Technologies ∙ Saint Clement’s Episcopal Church ∙ Terry & Donna Weatherspoon ∙ Hands of Christ ∙ Anonymous ∙ Backus Builders ∙ C. Duncan & Ellen Beard ∙ Dana & Wanda Karschner ∙ Donald & Linda Simons

∙ Schneider Electric ∙ Whirlpool Corporation ∙ Yale Commercial Locks & Hardware

Government Programs

Cherokee County Community Services Agency (HOME Grant) ∙ City of Roswell (HOME Grant) ∙ U.S. Department of Housing and Urban Development (HOME Investment Partnerships, Self-help Homeownership Opportunity and Softwood Lumber Programs)

Matching Gift/Employee Giving Programs

Aetna ∙ AT&T ∙ Bank of America ∙ Cisco ∙ State Employees Workplace Giving Program ∙ IBM Corporation ∙ Kimberly Clark Corporation ∙ LexisNexis ∙ Liberty Mutual ∙ McKesson ∙ Merrill Lynch ∙ Microsoft ∙ New York Life ∙ State Farm ∙ Travelers ∙ Wells Fargo

Manager,Site Acquisition Dede Allen

Director,DevelopmentSarah Cutright

Supervisor,Field ConstructionBob Gorrie

Manager,Cherokee ConstructionKevin Helliwell

Manager,Grants & EventsKristyn Johnson

Manager,FinanceVelyna Johnson

Manager,Faith Relations &Home RepairSabrina Kirkland

Director, DevelopementColleen Fogarty

Director, Family ServicesMary Lamond

Manager, Land DevelopementDavid McLaughlin

Manager, PurchasingGreg Pease

Director, ConstructionLee Presto

2014 DONORS

Chief ExecutiveOfficerRuss Hayes

Stephen L. SchoenPresidentSchoen Insulation Services, Inc.

Gregory J. SinatraPartnerThrivent Financial

Allison S. MannSecretarySenior IT ManagerAutoTrader.com

Bradley C. Beard Board ChairmanSenior Vice President, Corporate BankingSynovus

Mark D. SusorTreasurerVP, Corporate TransporationUPS

William LollisExecutive (retired)Bellsouth Corp.

Tony EylOwnerLandmark Commerical Realty

Birdel F. Jackson, IIIOwner (retired)B&E Jackson Engineers

Steven E. RomeynManaging PartnerWindsong Properties, LLC.

John LonginoAttorneyThe Longino Law Firm

William R. PhinneySenior Executive (r)Exquifax, Inc.

Manager,

Laura Cutlip

Habitat NCG Staff Board of Directors

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Thank YouHabitat for Humanity North Central Georgia is very thankful for the donors, partners and volunteers who have contributed directly to our work in 2014

814 Mim

osa Blvd., Building CRosw

ell, GA 30075

© 2014 H

abitat for Hum

anity - North C

entral Georgia, Inc. All rights reserved. H

abitat for Hum

anity - North C

entral Georgia is a non-profit ecum

enical Christian housing m

inistry. We are pledged to the letter and spirit of U

.S. policy for the achievem

ent of equal housing opportunity throughout the nation. We encourage and support an affirm

ative advertising and marketing program

in which there are no barriers to obtaining housing because of race, color, religion, sex,

handicap, familial status, or national origin.