It’s all hands on deck time for Hawaii nonprofits
From Honolulu Civil Beat, by Rosetta Thurman,
2011 Conference of Nonprofit Communities presenter
"We cannot solve problems using the same kind of thinking we used when we created them." —Albert Einstein
Pick up any newspaper on your way to work in the morning, and chances are, you’ll see numerous stories about the negative effects the recession has had on every local economy across the nation. The ongoing financial crisis has not only the for-profit industry worried about profit losses and layoffs, but nonprofit leaders are concerned about declining donations and jobs, too. The nonprofits we all look to as a safety net for the most vulnerable are now scrambling to figure what the financial meltdown means for their work over the long-term. Of course, no one can know for sure what the outcome will be, but one thing is clear.
The nonprofit landscape has been changed forever. Especially in Hawaii.
According to a recent survey by HANO and PHOCUSED (Protecting Hawaii’s Ohana, Children, Under Served, Elderly and Disabled), 70 percent Hawaii nonprofits underwent budget cuts during their last fiscal year, despite the need to deliver additional services during the economic recession. Strategies for coping with budget cuts included these:
- 67 percent met budget challenges by cutting staff
- 52 percent reduced programs and services
- 37 percent cut salaries
- 22 percent re-financed loans
- 21 percent were forced to waitlist clients
What the economic crisis is showing the nonprofit sector is that they can no longer depend on corporate social responsibility, unlimited government funding or stable donations from even their most loyal donors.
