The Habitat for Humanity Business Model

imagePhilanthropist Anthony Sinisgalli, the Director of Business Development for HCA, Inc., has donated extensively to Habitat for Humanity. As an experienced businessman, Sinisgalli remains impressed with the Habitat for Humanity business model, which ensures that individuals in need receive the help they need while raising funds for additional constructions. Families apply for the program through affiliates of the organization, and selection committees make decisions based on need, willingness, and financial resources.

After being chosen, families must make a down payment on the new home and then contribute extensively to the construction process. Generally, future homeowners spend hundreds of hours working on the construction alongside volunteers. Upon completion, Habitat for Humanity sells the home to the family at no profit and offers affordable financing for the balance. The monthly mortgage payments that individuals subsequently make go into the fund for construction of future homes. The organization uses donations to fund new projects and cover administrative expenses. Donors may also specify a particular project that they wish for the money to support.