The Role of Nonprofits in Today's Economy

Transcription

1 2011 Hawaiʻi Nonprofit Sector Report

2 Imagine what it would look like if Hawaii's 7,000 nonprofits stopped doing what they do best... Preschools and private schools would close, public television and radio would shut down, services to the disabled, elderly and homeless would be curtailed. Community health centers that serve vulnerable populations would be shuttered, invasive species would run rampant, and culture and arts programs that enlighten, spark imagination, creativity and hope would be lost. NONPROFITS TOUCH EVERYONE IN HAWAIʻI In collaboration with the National Council of Nonprofits and the Urban Institute s National Center for Charitable Statistics, HANO is pleased to present the 2011 Hawaiʻi Nonprofit Sector Report to promote better understanding and appreciation of Hawaii s nonprofit community. This report summarizes data on Hawaii s 501(c)(3) nonprofits and illustrates the significant role this sector plays. Much attention is given to the condition of business and government in our state, but we must not forget that nonprofits play a critical role as a third and independent sector. Nonprofits have a double bottom line to determine success accomplishment of their mission (land preservation, a homeless child sleeps in a safe place) and profit to reinvest in the mission and sustain the work of the organization. The primary source for this data is annual reports filed with the IRS by charitable nonprofits with over $25,000 in gross annual receipts. We assembled this report to continue to tell the story of the sector, build public awareness about the vital role nonprofits play, share with policymakers, the media and the public and to encourage charitable giving in Hawaiʻi. The nonprofit sector in Hawaiʻi is struggling. Nonprofits statewide continue to serve citizens and communities and advance missions of all kinds, but their operations have been made increasingly more fragile by the challenging economy. Nonprofits are on the frontline of defense for many affected by the economic downturn, providing services that are needed now more than ever. We hope this report will inspire you to collaborate and partner with us. Whether your role is volunteer, policy maker, business executive, donor, friend, or advocate, now, more than ever, Hawaii s nonprofits need your partnership to remain vibrant, improve the quality of life in Hawaiʻi and meet the needs of our citizens. Lisa T. Maruyama President & CEO, Hawaiʻi Alliance of Nonprofit Organizations Like the Laua e Fern, Hawaii s nonprofit organizations are resilient and can survive in a variety of conditions but they need your help to thrive.

3 The Role of Nonprofits in Hawaiʻi Nonprofits enrich the quality of life in Hawaiʻi Are diverse, inventive and focused on an astounding array of issues. Range from hospitals and community health clinics to local theaters, hula halau and museums; from independent schools and PTAs to groups protecting the environment and preserving open space; from emergency and homeless shelters to organizations that feed the elderly and support veterans and the disabled; from churches, temples and ministries to paddling and surfing clubs, youth recreation programs and much, much more. Are a powerful force in Hawaii s economy and create a caring community that strengthens and enhances the quality of life we treasure in Hawai i. Are the foundation of the creative economy arts, music, culture, theater that attracts businesses and visitors. Work for the common good and provide a safety net for those in need and augment and complement services provided by the state, effectively reducing the size and cost of government. Engage citizens young and old in the life of their communities through volunteerism. Are used by and touch the lives of everyone in Hawaiʻi. A few examples of HANO Member Organizations that provide these services: Puna Community Medical Center Lanai Community Health Center Aloha Medical Mission Friends of Hawaii's Urban Forest The Outdoor Circle Hawaii Conservation Alliance Foundation IHS, The Institute for Human Services, Inc. Family Promise of Hawaii Feed My Sheep Hawaii Meals on Wheels Office for Social Ministry Kualoa Heeia Ecumenical Youth Project Aloha Society of Association Executives Catholic Charities Hawaii Child and Family Service Goodwill Industries of Hawaii Hawaii Alliance for Community-Based Economic Development Hawaii Academy of Performing Arts Kilauea Point Natural History Association Hawaii Youth Symphony Association Polynesian Voyaging Society PHOCUSED (Protecting Hawaii's Ohana, Children, Underserved, Elderly & Disabled) Hawaiian Humane Society Visitor Aloha Society of Hawaii Volunteer Legal Services Hawaii Volunteer Resource Center of Hawaii Na Hoaloha/Maui Interfaith Volunteer Caregivers For a complete list of HANO Members, go to

4 Hawaiʻi Nonprofits by the Numbers A look at how the sector breaks down in Hawaiʻi 7,777 TOTAL NONPROFITS IN HAWAIʻI } 5,778 Charitable Nonprofits (under the (501(c)(3) designation) 330 Private Foundations 1,669 Nonprofits under other 501c subsections IN 2008 Tax-Exempt Organizations Under 510(c)(3)* Charitable Nonprofits Private Foundations (organizations that grant funding to nonprofits) Filing Annual IRS Report (over $25,000 in gross receipts) 2,801 2, Registered With IRS (over $5,000 in gross receipts) 5,778 5, Under Other 501(c) 501(c)(4) social welfare 501(c)(5) labor/agriculture 501(c)(6) business leagues 501(c)(other) , *Does not include religious congregations. Data from 12/2008 Business Master File data and may not match other figures in this report. SOURCES: NCCS Data Web, National Center for Charitable Statistics, Includes 990, 990-PF, 990-EZ, and 990-N

5 Hawaiʻi Nonprofits by the Numbers Number of reporting Hawaiʻi Nonprofits by field, 2008 Types of Charities Arts, Culture, Humanities Education Environment/Animal Related Community Improvement, Public/Societal Benefit Health Care/Mental Health Human Services Religion Related, Spiritual Development Research: Science, Technology, Social Science All Others Total Number ,836 Total Percentage 15.03% 17.97% 6.05% 10.13% 12.09% 30.56% 4.14% 1.03% 3% 100%

6 Hawai i Nonprofits by the Numbers The Number, Expenditures, and Assets of Reporting Charitable Nonprofits in Hawaiʻi by Field, 2008 KEY OBSERVATIONS } Health Care/Mental Health and Human Services together comprise 40% of Hawaii s Nonprofits, followed by Education at 17%, and Arts, Culture & Humanities at 15% Educational Nonprofits hold the most assets of all the categories at 60% Of all the categories, Hospitals are the Nonprofits with the highest expenditures at almost 42%

7 Hawai i Nonprofits by the Numbers Reporting Charitable Nonprofits in Hawaiʻi by Expenditure Level, % Percent of Charities by Expenditure Level 3% 3% Less than $100,000 $100,000 - $499,999 9% 45% $500,000 - $999,999 $1,000,000 - $4,999,999 $5,000,000 - $9,999,999 28% Greater than $10,000,000 Expenditure Level Number of Charities Assets Expenditures Percent of Total Charities Percent of Total Assets Percent of Total Expenditures Less than $100, $268,684,395 $36,454, % 1.67%.84% $100,000-$499, $397,161,935 $118,833, % 2.47% 2.72% $500,000-$999, $363,048,660 $116,280, % 2.26% 2.67% $1,000,000-$4,999, $1,354,939,438 $480,905, % 8.44% 11.02% $5,000,000-$9,999, $666,563,511 $348,144, % 4.15% 7.89% More than $10,000, $12,999,807,833 $3,262,551, % 80.99% 74.77% Total 1,836 $16,050,205,773 $4,363,170, % 100% 100% (SOURCE: NCCS Data Web, National Center for Charitable Statistics, )

8 Hawai i Nonprofits by the Numbers Number of Hawaiʻi Nonprofits by County, 2008 Kauaʻi 112 Nonprofits Honolulu 1,206 Nonprofits Maui (Maui, Molokaʻi, Lanaʻi) 254 Nonprofits Hawaiʻi Island 264

9 Hawai i Nonprofits by the Numbers Hawaiʻi Foundations, 2008 OVERVIEW Foundation Type Number of Foundations Assets Total Giving Independent Foundations 275 $977,958,460 $61,608,773 Corporate Foundations 19 $174,144,601 $8,440,805 Community Foundations 2 $386,168,222 $23,357,205 Operating Foundations 28 $362,196,814 $3,067,450 Total in Hawai'i 324 1,900,468,097 96,474,233 Total in United States 75,595 $564,950,926,000 $46,781,305,000 Hawai'i as % of U.S. 0.43% 0.34% 0.21% TOP 10 FOUNDATIONS BY ASSETS Foundation Name Assets Foundation Type Hawaii Community Foundation $385,186,618 Community Harold K. L. Castle Foundation $178,943,822 Independent The Hau'oli Mau Loa Foundation $147,387,323 Operating The Clarence T. C. Ching Foundation $124,894,370 Corporate Consuelo Zobel Alger Foundation $118,214,718 Operating Atherton Family Foundation $80,397,394 Independent McInerny Foundation $63,260,233 Independent New Moon Foundation $44,081,318 Operating The Shaw "U.S." Foundation $41,509,297 Independent Na 'Aina Kai Botanical Gardens $35,450,906 Operating Total $1,219,325,999 TOP 10 FOUNDATIONS BY TOTAL GIVING Foundation Name Total Giving Foundation Type Hawai'i Community Foundation $23,282,204 Community Harold K. L. Castle Foundation $6,922,581 Independent The Shaw "U.S." Foundation $6,211,304 Independent Atherton Family Foundation $4,567,670 Independent McInerny Foundation $2,898,187 Independent Victoria S. and Bradley L. Geist Foundation $2,137,801 Independent Alexander & Baldwin Foundation $2,123,675 Corporate Samuel N. and Mary Castle Foundation $2,069,075 Independent HMSA Foundation $1,790,695 Independent First Hawaiian Bank Foundation $1,777,731 Corporate Total $53,780,923 Source: The Foundation Center

10 Sector Resources Other Resources: Recent Studies: Nonprofit Finance Fund s (NFF) 2011 State of the Sector Survey focuses on the intersection between finance and mission the financial strategies nonprofits are employing to keep up with ever-climbing demand for services. To view the study, go to: More than 3,000 executive directors participated in Daring to Lead 2011 A National Study of Nonprofit Executive Leadership, produced in partnership by CompassPoint and the Meyer Foundation. To view the study, go to: Holding the Fort: Nonprofit Employment During A Decade of Turmoil, a Johns Hopkins Nonprofit Economic Data Project, is a revealing and timely study validating the nonprofit sector s resiliency and critical role during a decade of economic turmoil. To view the study, go to: BoardSource ( BoardSource is dedicated to advancing the public good by building exceptional nonprofit boards and inspiring board service. BoardSource strives to support and promote excellence in board service, is the premier source of cuttingedge thinking and resources related to nonprofit boards, and engages and develops the next generation. Guide Star ( Guidestar s mission is to revolutionize philanthropy and nonprofit practice by providing information that advances transparency, enables users to make better decisions, and encourages charitable giving. On their site, you can view the IRS Form 990 for any nonprofit organization registered with the IRS. Hawaiʻi Alliance of Nonprofit Organizations ( HANO unites and strengthens the nonprofit sector as a collective for to improve the quality of life in Hawaiʻi. National Council of Nonprofits ( The National Council of Nonprofits, the nation s largest nonprofit network, works through its member State Associations to amplify the voices of America s local community-based nonprofit organizations, help them engage in critical policy issues affecting the sector, manage and lead more effectively, collaborate and exchange solutions, and achieve greater impact in their communities.

11 How You Can Help The nonprofit sector is essential to Hawai i. Our quality of life, our economy, and the common good of our society are all inextricably linked to the work of nonprofits. Now is the time to create new partnerships, new systems and new avenues for collective planning. Now is the time for leadership, volunteerism, philanthropy and engagement. We need informed citizens who can help us grow our capacity and face current and future challenges. Your involvement makes a difference. What YOU can do Get to know the nonprofits in your community, learn about their missions and see where you might engage. If you are a business leader, include specific goals about partnering with a nonprofit in your business plan. Learn more about becoming a board member for a nonprofit organization. If you are already a board member, encourage others to serve. Advocate on behalf of the interests of nonprofits. Review this report and its key points. Share your enthusiasm and volunteer experiences with your ohana, friends, and colleagues and encourage them to get involved. Contact your county council member, state legislator, senator and congressional leaders and let them know how vital the nonprofit sector is to Hawaiʻi. Urge them to vote to strengthen the sector wherever possible. Encourage the interest of young people in service and careers in the nonprofit sector. Take advantage of the programs and resources at the Hawai i Alliance of Nonprofit Organizations Follow us on Facebook and Twitter. Mahalo!

12 Hawaiʻi Alliance of Nonprofit Organizations The Hawaiʻi Alliance of Nonprofit Organizations (HANO) is a membership organization that promotes a stronger nonprofit sector, a supportive public climate, and the ability of nonprofits to accomplish their missions. Representing the richness and diversity of Hawaii s charitable sector, HANO s members address a broad array of missions and range in size from the largest organizations to the smallest unstaffed nonprofits. HANO achieves its mission through research, education, training, public policy and advocacy, and access to affordable goods and services. HANO is a proud member of the National Council of Nonprofits, the network of state and regional associations of nonprofits serving over 22,000 members. To join in membership or for more information, contact HANO at P.O. Box , Honolulu, HI 96824, (808) , info@hano-hawaii.org, or visit our website at