Hawaii is a special place, and it’s the people who make it a compassionate community. We show aloha for our family, friends, neighbors and even complete strangers. All of us at one time or another, have benefited from the care of others.
We need each other to lift us up, and that’s why Goodwill Hawaii is investing in a major way into the Big Island community. With our recent purchase of a 1.4 acre property in Hilo, we will finally have the space we need to expand our community services islandwide and grow our thrift store, donation and recycling businesses.
But like any other charity, securing enough funding for all the help we want to provide hasn’t come easy. Goodwill Hawaii — along with so many other nonprofits — provides a safety net to the vulnerable, but that safety net is unraveling. In 2023, we helped almost 2,000 people in Hawaii County with job counseling, training and placement for the unemployed or under-employed. Working together with the entire nonprofit sector, we combat poverty, unemployment, drug abuse, food insecurity and homelessness problems that affect every community, while our own nonprofits struggle to make ends meet.
Many nonprofits today are at a crossroads due to insufficient funding for government contracts at a time when demand for these vital programs and services is only growing. Government contract rates are often below the true cost of providing these services.
In a recent survey of Hawaii nonprofits, 91% said they had government contracts which fell below the full operating costs to provide the contracted services. Compounding the issue is the fact that many of the contract rates have remained static for over a decade, while costs have risen due to inflation and the turbulent economy.
We have government contracts that provide the same amount of funding as 12 years ago. Can you imagine having the same amount of funds to provide the same services 12 years later? Meanwhile, the average office rent, gas, health insurance and wages nearly doubled in that time.
Too many nonprofits have cut costs to make ends meet, with 79% of organizations reducing their administration, while 56% report undercutting staff salaries. This compromises their operational effectiveness and hurts our local workforce, as skilled employees are recruited elsewhere for the sake of their own ‘ohana.
So far, nonprofits have been able to survive (but not all) by making these cuts and relying on community support to cover the gaps — but this is no longer sustainable. If underfunding of government contracts continues, the most vulnerable in our community will suffer.
What will happen if our crisis hotlines only operate some of the time? How will low-income kupuna, with no transportation, get food if their local food pantry is closed? Where will a victim of domestic violence go if a shelter is shut down?
We hope we never have to find out. The good news is, it’s not inevitable. We are encouraged that key legislators are working to address the funding issue and are appreciative of state department directors such as Dr. Kenneth Fink of the Department of Health who recognize the importance of addressing the true costs of providing essential government services.
Our community depends on Goodwill and many other charities to find a solution that secures the health and well-being of our most vulnerable residents, and ensures that Hawaii remains a compassionate, yet prosperous, place for everyone. Please join us in expressing to the state the importance of meeting the true costs of the community’s safety net.
Katy Chen serves as the president and CEO of Goodwill Hawaii, one of the largest nonprofits in Hawaii, with an annual budget of $37 million and 450 employees statewide.
