Human Services : Social Services
Homes for Our Troops
Building specially adapted homes for our severely injured veterans
Explanation of surplus
Posted by Tom, HFOT's CFO | October 30, 2009 2:33:53 AM
I am Tom Benoit, the VP/CFO of Homes for Our Troops. Spivey181's reply is certainly one of the reasons for the cash we have on hand, since increased donations in 2008 have allowed us to take on more projects in 2009. Because of the significant cost of each home, we need to be sure we have adequate working capital to complete current home projects and commit to future ones. Also, as a prudent business practice, charities are expected by CN to have a reasonable amount of cash on hand so that it can meet its current commitments and also sustain itself on a long-term basis. In CN's ratings, one of the criteria is to have adequate working capital equal to at least 1 year's expenses. If you have less than one year, it negatively affects the rating. HFOT had about 2.6 years of working capital and thus got the maximum rating on this financial measurement. A charity should certainly not hoard money, but it must maintain adequate assets to meet its long-term commitments and goals.
Surplus
Posted by spivey181 | October 7, 2009 5:49:46 AM
I would guess that they had a surplus since their charity involves projects that take time. At the beginning of each planning cycle, they probably estimate their total revenue and start a number of projects based on their estimates. I would say it is most likely that their revenue greatly exceeded their estimates for the year and they are probably spending that money on new projects, just not in time for it to show up on the Form 990. I have no experience with this charity - I just think that is the most likely explanation.
Too much surplus money at the end of the FY?
Posted by RM | October 5, 2009 6:17:52 AM
Why is there an 11 million dollar "excess" at the end of the fiscal year? Shouldn't some of that money be used for the organizational purpose? I.E. building more "homes for troops" who need them? Thanks.
Submit your comment
You must be logged in to leave a comment. Log In or Register Now. It's Free!
Once submitted, all comments are final and may not be edited or deleted by the commenter.
Read posting guidelines
Posting Guidelines for Comments and Other Content
Registered users of Charity Navigator may post comments and other content, so long as the comments and content are not illegal, obscene, threatening, defamatory, invasive of privacy, infringing of intellectual property rights, or otherwise injurious to third parties or objectionable and do not consist of or contain software viruses, political campaigning, commercial solicitation, chain letters, mass mailings, or any form of "spam."
When posting a comment on this site, you may not use a false e-mail address, impersonate any person or entity, or otherwise mislead as to the origin of the comments and content. You are encouraged not to post comments anonymously. Comments and content posted in this section are not the opinion of Charity Navigator. If you do post comments, content or submit material, you represent and warrant that you own or otherwise control all of the rights to the content that you post; that the content is accurate; that use of the content you supply does not violate this policy and will not cause injury to any person or entity; and that you will indemnify Charity Navigator for all claims resulting from content you supply. Charity Navigator has the absolute right but not the obligation to monitor and edit or remove any activity or content, for any reason. Charity Navigator takes no responsibility and assumes no liability for any content posted by you or any third party.
Charity Navigator reserves the right to terminate this feature at any time, with or without advance notice.
excellent work
Posted by Hofi | November 13, 2009 12:02:10 PM
I've seen numerous stories in the news about these guys and every time I end up crying. They are doing an amazing job bringing communities together to help troops adapt to their new lives post-injury. I'm happy to see here that they have also earned a 4 star rating in addition to their wonderful work.
They make me proud to be from Massachusetts.