State of the Sector: One size does not fit all, size isn't everything and talent is harder to find

Hawai‘i Community Foundation has announced the findings of its study, "Hawai‘i Nonprofits 2006: One Fabric, Different Threads," which was prepared by SMS Research to follow up on a benchmark study conducted by HCF and SMS in 2001.

"In 2006, our findings show that the economic contribution of Hawai‘i's nonprofits is still quite large," said Kelvin Taketa, HCF president & CEO. The sector generates "about $3.8 billion in revenues, representing nearly eight percent of the state's gross domestic product, and employing about eight percent of Hawai‘i's non-agriculture workforce."

Taketa noted that the findings confirmed that the nonprofit industry is comprised of many sub-sectors which face very different in their challenges and opportunities, "which is why we named this year's study ‘Hawai‘i Nonprofits 2006: One Fabric, Different Threads,'" he said.

Three themes emerged from the study, Taketa said:

  1. The diverse revenue mix of the various nonprofit sub-sectors creates different challenges and pressures. For example, the arts and humanities sub-sector tends to have a more evenly distributed mix between contributions, program revenue and dues and sales, while health and human services organizations rely more on government funds and fee-for-service revenue and others – such and environment, animals, public and societal benefit, religion-related and international agencies – rely heavily on contributions, gifts and grants.
  1. Depending on an organization's type, growth may not bring financial stability or longevity. Growth can put stress on an organization's capacity, mission, systems, financial health and culture.
  1. Competition for talent is heating up, both for staff and volunteer leadership positions. Half of all nonprofit executive directors are 55 years or older and 42 percent executive directors expect to leave by 2010, the study found.

For more on the study and to download a PowerPoint presentation and an executive summary of its findings click this link to go to the Foundation's web site.