Hawaii nonprofits face an economic downturn

About 20 Hawaii nonprofit leaders, from small and large organizations representing a variety of missions, gathered on Wednesday, April 9, at a meeting in downtown Honolulu convened by the Hawaii Alliance of Nonprofit Organizations to discuss the current economic downturn and what nonprofits can do to successfully mitigate its impact.

Following the meeting, Mary Vorsino of the Honolulu Advertiser interviewed several participants for a story, "Hawaii charities feel squeeze – Economic troubles threaten services, jobs even as need increases," which was the lead, front-page story in the paper's Sunday, April 6, edition.

The story noted staff cutbacks at Aloha United Way and the Institute for Human Services and planned expense cuts at Helping Hands Hawaii and quoted HANO President John Flanagan: "Hawai'i is still pretty much in denial. But it's become more and more difficult to deny there's a change" in the economy. "There has to be some forward thinking."

At the HANO meeting, participants agreed that the nonprofit sector national priorities, developed by the Nonprofit Congress in 2006, were still valid. These include nonprofit organizational effectiveness particularly in the areas of accountability and leadership, building public awareness and support for nonprofits, and advocacy and grassroots activities.

However, after discussing past successes during times of economic hardship, they suggested that the priorities today should also include flexibility, willingness to change, creativity and collaboration. They described how recessions force organizations to look closely at their missions, programs, environment and strategies and move out of their comfort zones into new ways of doing things and staying relevant. 

They also noted that successfully telling their organizations' stories to donors, funders, the media, staff and volunteers was key for success and sustainability during a downturn. Strategic storytelling is the theme of HANO's upcoming conference on May 16, "Mo'olelo o 'Ahahui: Telling the Nonprofit Story."

One participant, a consultant for local foundations, said that trust and foundation money is still available, but that in a time when resources are scarce it is especially critical for grant proposals to make a compelling case.

State money is becoming much harder to get, however. "State Sen. Rosalyn Baker, chairwoman of the Ways and Means Committee, said the number of state grants for capital improvement projects and operating expenses at nonprofits is expected to drop significantly this year," the Advertiser reported. "State grants for operating funds likely will fall by 10 percent to $13.5 million this year, Baker said."

At the same time, however, Jerry Rauckhorst, CEO of Catholic Charities Hawaii, told the newspaper that history has shown that Hawaii donors have remained generous during times of financial shortages, such as the economic crisis in Hawaii that followed the 9/11 disaster 2001.

The HANO meeting will provide guidance for the organization's efforts to support noprofits in the state and will also be reported to the Nonprofit Congress to be included in its deliberations June 1 to 4 in Washington, D.C., this year.