Irvin Henderson gives
HANO members a pep talk

“America is a tougher town today,” Irvin M. Henderson told HANO members assembled for the alliance’s annual meeting. We might not be able to serve our constituencies as well as we’d like to, he said, but “we are the most resilient people on this planet. We have been here before and we have prevailed.

The Dec. 5 meeting at the Pacific Club in Honolulu was sponsored by ING Direct (see the item about ING Direct's new Kalakaua Avenue cafe, which provides free meeting faciliti4es for nonprofits).

Henderson, a North Carolina-based consultant, focuses on economic development and has worked with Hawaii nonprofits including the Hawaii Alliance for Community-Based Economic Development and the Arc of Hilo. “We need to think of ourselves as big boys and girls with big assets, big responsibilities and big hearts,” he told the group of some 85 nonprofit leaders and supporters. “We can’t hang our heads.”

 “Henderson is a friend of Hawaii ... it’s timely to have him share with us now because of the tough economic times we are facing, said Bob Agres of HACBED. His Oahu visit came after nine months spent working with Hawaii community development groups.

He suggested that tough times mean nonprofits must do new, bold things, finding new relationships, opportunities and markets. Nonprofits can put their skills and ideas to work, shifting to earned income and social enterprise. “Your greatest resource is in this room,” he said. “You know your business.

Recognizing that investors have pulled trillions of dollars out of the stock markets and are looking for places to invest, he said. Look for investors rather than funders. Analyze your current operation as a business, not as a charity. “’Nonprofit’ is your tax exempt status; it should not be your business strategy.”

Find new sources of revenue; seek investments not just donations

Look for new sources of income you’ve never used before, he said. Opening new markets and using tax credits, for example, will allow the Arc of Hilo to put up a new $10 million building that otherwise wouldn’t happen. Tap your board for managerial expertise and to open doors, he said. Boards can do more than make financial contributions; they can help build the organization and create new revenue streams.

Learn about the About the New Markets Tax Credit Program, which provides individual and corporate taxpayers with a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities.

“Prepare yourself for federal programs that you are going to like,” Henderson said. Go to the General Services Administration web site and learn how to become a federal contractor. “You don’t have to be large to get a federal contract,” he said, pointing out that contractors include organizations with as few as three employees. The key is to become a problem solver and show how you can solve a problem better than anyone else.

For example, the government will spend $20 billion to retrain displaced workers and there will be new housing programs and poverty services done through contracts rather than through government agencies. The key is to understand the needs – the problems that must be solved, he said.

President-elect Obama promised state governors that he will remove obstacles to getting things done. “We should listen,” Henderson said. Expect to see Obama use the huge network he inspired to use the Internet to fund his campaign to move legislation through the Congress.

Beg, borrow and barter; copy and steal if it works 

Look for synergies, he said. If cash is in short supply, use barter and trade services. Look for ways to save and publicize how you are saving money. Use grants for venture capital not for program support. Copy and steal – don’t be afraid to do things “their way” if it works, he said.

Being nice – putting the aloha spirit to work – is a weapon Hawaii nonprofits can put to good use dealing with mainland funders, he said. That’s an advantage for Hawaii – that’s unique.”

Henderson said the secret to raising money is to stay after a funder or an agency until they give in. Don’t just write a proposal and be crushed when you don’t get the grant, he said. Do an exit interview and find out why it was turned down. Fail? Do it again next year. “It’s your money,” he joked, “other people just happen to have it right now. Funders need to know it isn’t a year-to-year thing for us. Let them know it’s work with me now or face me later.

Henderson said he personally raised $8 million last year. His pitch: “I just have greater needs than anybody else you know.” He even camped outside a foundation director’s house to get a chance to push his proposal. “Not his office,” he said. “His house!”

 “Be bold, but be careful – praise those who do the work and raise each other up,” Henderson told HANO members. “If it is to be, it’s up to thee.”