Where Does $100 to Homes for Our Troops Go (2021)?
Homes For Our Troops provide a much needed product (build and donate custom homes outfitted for disabilities) and a service (a pro-bono financial planner for three years to assist in financial planning and household budgeting, along with homeownership education and warranty coverage to ensure that the Veteran is set up for long-term success as a homeowner).
Homes For Our Troops is a tax-exempt, non-profit 501 (c) (3) established in 2004 in Massachusetts “to build and donate specially adapted custom homes nationwide for severely injured post-9/11 veterans to help them rebuild their lives.” Over the past 17 years (2004-2021), 325 homes (an average of 19 custom homes annually) have been built for veterans who have “sustained injuries including multiple limb amputations, partial or full paralysis, and/or severe traumatic brain injury (TBI).”
There are 14 board members of the governing body, 13 of whom are independent. The most recent Form 990 lists 15 board members (which appears to be due to timing differences); 13 of whom are male and 2 who are female.
The most recent IRS Form 990 (for the year ending September 30, 2021) reports the organization collected $31 million, most of which were contributions, gifts, and grants including $1 million from the government). Expenses totaled $28 million – about $3 million less than the organization collected.
There are two ways to look at expenses or how donations are spent: by category which means by three (3) general categories – program, management and general expenses, and fundraising; or by line item which provides more detail.
Homes For Our Troops spent $28 million on the following three categories:
- $24 million or 78% of revenue: Program Expenses
- $ 2 million or 6% of revenue: Management and General Expenses
- $ 2 million or 6% of revenue: Fundraising Expenses
or by line item:
- $14 million (45% of revenue): Veterans’ Homes
- $ 4 million (13% of revenue): Compensation, Salaries, Benefits for 59 employees
- $ 1 million (3% of revenue): Office-Related Expenses
- $ 1 million 3(% of revenue): Professional Fees
- $ 1 million (3% of revenue): Advertising,Promotion, Events
- $ 7 million (23% of revenue): Other Expenses (no detail provided but appear to be program-related)*
“*”On the Form 990, Part IX, Line 24E is listed $6.1 million in other expenses which should be listed on Schedule O, but are not. The Form 990 (2020 for the year ending September 30, 2021) on the organization’s website link stops at Page 46 with the last entry being Part IX, Line 2. The audited financial statements (available for review on the organization’s website) for the year ending September 30, 2021 indicate the cost of building veterans homes to be $20 million, which indicates the other expenses may be costs of building veterans homes.
Using the above information, ever $100 was spent as follows:
-$ 78: Program Expenses
-$ 6: Management Expenses
-$ 6: Fundraising Expenses
-$ 90: Total Expenses
or, by specific expense:
-$ 45: Veterans’s Homes
-$ 23: Other Expenses (no detail but appear to be program related)
-$ 13: Compensation, Salaries, Benefits for 76 employees
-$ 3: Office-Related Expenses
-$ 3: Professional Fees
-$ 3: Advertising, Promotion, Events
-$ 90: Total Expenses
As illustrated above, Homes For Our Troops spent $90 for every $100 raised in 2021, allocating the excess revenue to the general fund. At year-end net assets were $19 million compared to $16 million at the beginning of the year.
In summary, Homes For Our Troops spends a high percentage of revenue on building custom homes for our veterans. The IRS Form 990 indicates the organization has $19 million in net fund assets, most of which are unrestricted and in cash, pledges, grants receivable, and securities. Of the 77 staff, only 5 receive more than $100,000 in compensation:
- $181,921: HT Landwermeyer, President and CEO
- $150,531: William D Ivey, Executive Director
- $148,145: Richard A Pratt, Director of Construction Ops
- $149,188: Cynthia R Baptiste, CFO
- $120,157: Kathleen DeVito, Director of Marketing
The organization does not pay for first class or charter travel or social or health club memberships.
The bottom line: Homes For Our Troops spend donor dollars consistent with their mission: they build and donate specially adapted custom homes nationwide for severely injured post-9/11 veterans to help them rebuild their lives. For more information on Homes For Our Troops, go to their website: www.hfotusa.org. To read the most recent IRS Form 990 (2020 for the year ending September 30, 2021), click here.