Survey finds Hawaii's people in need
and taxpayers deserve better
New Urban Institute report highlights problems
in the government nonprofit contracting system
The Hawaii Alliance of Nonprofit Organizations, in conjunction with the National Council of Nonprofits, on Oct. 7 released an analysis of a national survey by the Urban Institute, documenting for the first time serious and widespread problems experienced by nonprofit human service providers that contract with governments at the local, state and national levels.
The survey report, Human Service Nonprofits and Government Collaboration: Findings from the 2010 National Survey of Nonprofit Government Contracting and Grants, provides critical national and Hawaii state data on contracting practices, and ranks states from worst to best on several areas of concern to individuals in need of services, to taxpayers and to entire communities.
The research project began following an increased number of reports about governments failing to pay nonprofits on a timely basis as required by the terms of validly binding contracts. It discovered, however, that the late payment problem is just one of five major problems that human service nonprofits are experiencing:
Hawaii ranks high in the nation in the following problem areas: 8th highest for government mid-stream contract changes; 15th highest for late payments to nonprofit contractors; 20th highest for complexity and time required for the contract application process; and 20th highest in payments that do not fully cover contracted services.
“The news from the Urban Institute report confirms what nonprofits and the people we serve have known since well before the recession began. The contracting system is challenged and all of us in the community are paying the price,” said Lisa Maruyama, HANO president and CEO.
“Fixing the system for the benefit of the people of Hawaii must be a priority of nonprofits and policymakers, including candidates for office. We call on all parties to commit to working together for responsible solutions,” she said.
PHOCUSED (Protecting Hawaii’s Ohana, Children, Underserved, Elderly and Disabled) joins HANO in this effort. The two organizations hope to work with the incoming administration and legislature to make improvements in this area.
“Organizations serving our most vulnerable residents have enough challenges facing them during these tough economic times, without having to also endure further setbacks and obstacles in the contracting area,” said Alex Santiago, PHOCUSED executive director. “Those they are serving cannot continue to endure more cuts and delays in services. This study points to areas that must be addressed to allow our system to continue to meet their needs.,"
With the release of the Urban Institute's survey results, the National Council of Nonprofits issued a special report that provides additional context to the findings, including identifying specific practices that contribute to the problems nonprofit human services providers have experienced.
The National Council’s report also explains how the contracting problems affect people receiving services and entire communities, and proposes solutions that nonprofits and government officials can adopt to improve services for individuals, restore value for taxpayers and strengthen communities.
