Organizations that deal with crises all the time locally are facing crises not of their own making. The Hawai`i True Cost Coalition is comprised of more than 50 community-based organizations (CBOs) that annually serve over a half-million residents in Hawai`i.
The Coalition is attempting to rectify the decades-old problem of government underfunding for government-based projects so that agencies can continue to provide support for victims of domestic abuse, housing for foster/at-risk youth and other low-income individuals/families, food distribution for those in need, elderly services, homeless outreach, mental health counselling… the list goes on and on. Pick a social problem, and odds are an agency dealing with it that that has to come up with its own funding due to government underpayment (and slow payment) for government-initiated programs.
It’s beyond unfair that local nonprofits must continue to have this financial burden placed upon them by archaic pay scales; the last few years (with COVID and the Maui wildfires) have made things even more difficult for so many agencies that so many rely on.
Full disclosure- I work at Aloha United Way, am involved with the True Cost Coalition, and thus help as a partner agency with Coalition members who are simply trying to make ends meet so that they can deliver social services so badly needed. If non-profit agencies cannot cover administrative and personnel costs to run government projects and programs, something’s gotta give… like services provided, having enough social workers available to do the work, etc. CBO-sourced grants and donations help, but the irony is that if non-profits must cut back services or close their doors, the onus to deal with social ills will invariably fall back on local government. Problems will compound, which will cost even more.
A 2022 survey of Hawai`i non-profits indicated that, in working on government contracts, 79% “always or often had to cut administrative costs”, 56% “always or often had to undercut staff salaries”, and 40% “…felt they may not be able to continue to operate in Hawai`i if government contracting challenges are not addressed”. Not good, not right.
The state has a budget crisis; that’s understood. But we’ll see disastrous, ripple effects if we experience a disappearance of or program cutbacks at efficient CBOs that help over 500,000 people locally because they are not being sufficiently funded by the very entities they contract with and who depend on them- the government.
Think about it…