Nonprofit organizations are a significant contributor to Hawaii's economy, providing 41,000 jobs and a total payroll of about $1 billion and generating about $2 billion in revenues, according to a benchmark study released yesterday. Nonprofits boost state’s
economy, study concludesBy Mary Adamski
madamski@starbulletin.comThe state's 6,000 private nonprofits are "the state's silent economic partner," the Hawaii Community Foundation reported in what it called the first comprehensive survey of the agencies that contribute necessities and niceties throughout the islands.
Nonprofit agencies face decreased government spending and reduced business contributions at the same time the people in the struggling economy make increasing demands for services, said foundation President Kelvin Taketa.
Only 6 percent of the organizations that responded to the survey said they could provide additional services, and 44 percent said they are at their capacity.
Questionnaires were sent to 2,000 agencies involved in social services, health, education, environment, faith-based services, community development, and culture and the arts. That included the 1,363 largest organizations, which have revenues of more than $25,000. Only 288 agencies responded to the survey. Findings included:
>> Health and human service agencies receive from 74 percent to 93 percent of their revenues from the government, mostly as earned income from program services.
>> Local agencies are more reliant on charity than the national average -- 19 percent of total revenues, compared with the national 10 percent.
>> Faith-based services are 80 percent reliant on contributions. By comparison, community development groups rely about 38 percent on donors and 38 percent on investment revenues. About 71 percent overall receive contributions from individuals, corporations and foundations.
>> Besides employing 7.4 percent of the nonagricultural work force, the agencies benefit from the energy of 18,000 long-term volunteers and about 29,000 periodic volunteers.
Taketa said the survey will help plan for the future.
"We cannot even start to imagine the dire impact on our way of life if the nonprofit sector does not get the resources it needs," he said.
It follows two earlier Hawaii Community Foundation studies -- a 1999 Hawaii Giving analysis that revealed that Hawaii people give more than national averages, and a 2001 partnership in a national profile of issues and challenges faced by nonprofit leaders.
The survey is available at www.hcf-hawaii.org.
State of Hawaii
