For Habitat for Humanity Manitoba, this year marks a new beginning, with the addition of both a fresh revenue stream and valuable team. The not-for-profit has formed a unique alliance with the Niverville-based for-profit real estate appraisal firm Red River Group (RRG).
Thanks to a legacy gift received from RRG valued at nearly $125,000, Habitat is now an RRG shareholder, holding ten percent of the company’s shares and earning annual dividends based on those shares.
“This is a wonderful and innovative way to be generous,” says Jamie Hall, CEO of Habitat for Humanity Manitoba. “It is also a natural extension of the generosity that Red River Group has shown Habitat Manitoba for many years. We are thrilled.”
Hall says that the relationship will help Habitat by establishing an ongoing funding stream. Not only that, but Habitat will also benefit from the years of expertise in the housing industry that RRG can provide.
“Red River Group is continuing their donation of free appraisals outside of Winnipeg and has included discounts in services in Winnipeg as well as consulting time,” Hall says. “Over time, I envision an even closer working relationship, where Red River Group gives advice and counsel, helping us ensure that we find the best ways to serve our families. Of course, I expect several shareholders will still pick up a hammer every summer and volunteer their time to help build a home for a family.”
Indeed, that’s been Habitat’s experience over the past decade as RRG’s charity of choice. Along with regular donations, RRG team members have actively participated in many Habitat builds.
RRG’s president, Gord Daman, says that his shareholder team began discussions on this unique merger over 18 months ago, as RRG approached it’s twenty-fifth year in business.
It came with some sacrifice, meaning every shareholder would need to give up ten percent of their own shares in the company and the dividends that came with that.
Once the decision was made internally, months of financial and legal counsel followed for both RRG and Habitat Manitoba.
In January of this year, Hall participated in his first RRG annual general meeting as an active shareholders.
“What’s the focus at the end of the day?” Daman asks. “That’s to serve clients and to ensure that we’re doing it sustainably. Habitat actually has a strong track record in that, so they provide a level of business value through their not-for-profit lens which helps make a for-profit company [like us] focus on long-term sustainability matters in regards to fiscal, social, and ecological outcomes. So, essentially, [they help] make sure that we’re staying in check when it comes to people and planet and profit.”
Daman says he’s not aware of any other for-profit and not-for-profit mergers like this one, although other models have been created in recent years.
“This is rather unique,” Daman says. “With it comes some Revenue Canada rules that we have to follow… A registered charity [like Habitat] cannot hold more than 49 percent of the shares.”
Founded in 1976, Habitat for Humanity now has chapters in more than 70 countries around the globe. The first Manitoba Habitat home was built in Winkler in 1985. Two years later, Winnipeg became home to the first Habitat chapter in all of Canada.
Habitat provides affordable home ownership solutions to lower income working families who don’t qualify for conventional mortgages. Through Habitat, qualifying applicants receive a renewable interest-free 15-year mortgage plan requiring no downpayment.
In return, they are expected to contribute at least 500 hours of sweat equity into the build of their home or at one of the Habitat ReStore locations. They are also required to attend financial education workshops to help prepare them for the many facets of home ownership.
Habitat draws much of their additional support through volunteerism from the community in which a Habitat home is being built, which helps ensure the family’s long-term success there.
“Our 2024 business plan has identified a minimum of 23 homes to be built across Manitoba this year,” says Hall. “Depending upon our cashflow, we could build up to 33 homes.”
Along with new home builds planned for the city of Winnipeg, rural construction is also planned for Winkler, Selkirk, Brandon, Killarney, Virden, and Kenora.
RRG team members are excited to offer their clients an opportunity to be a part of something good every time they employ RRG’s services. As well, they’ll be encouraging clients to convert their RRG loyalty reward points into Habitat donations.
“Sadly, the need for housing is not decreasing for folks that are facing economic barriers,” Daman concludes.
