Governments must pay nonprofits on a timely basis
By Kelvin Taketa
Hawaii Community Foundation
See also:
With leadership changes at Washington Place, Honolulu Hale and at least one of two legislative chambers in Washington, there is an opportunity to forge a new compact between the nonprofit sector and government. This is not about Republicans or Democrats. Rather, it is about how government will partner with that part of our society that provides essential services for our citizens and creates effective programs to bolster our communities.
For decades our country has been on a path of shifting services, which traditionally were handled by government agencies, to external providers, with the aim of shrinking government and with the intention that those services could be done more efficiently by others. As a result the nonprofit sector underwent a period of significant growth, largely fueled by government contracts. In Hawaii more than 60 percent of the revenues for the sector come from government sources.
However, there were several unintended consequences from this change. Government leaders lost connection to those services, which resulted in dwindling allegiance to the nonprofit groups in tough budget times. Also, increasingly difficult terms in government contracts left nonprofit groups facing a draconian decision: Stop providing needed services or enter into contracts that could eventually drive them to insolvency.
It seems the time is right to consider how government leaders can work with the nonprofit and philanthropic community to create a new compact for our society. Read more in the Honolulu Star-Advertiser…
