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The Honolulu Advertiser

Posted on: Friday, January 10, 2003

Nonprofit agencies forming partnership

By Jennifer Hiller
Advertiser Staff Writer

What you need to know

• Donations of clothing or household items to either Big Brothers Big Sisters or Goodwill Industries now will benefit both groups.

• All donated items will be sold in Goodwill's thrift shops.

• The financial operations of the agencies will remain separate. If you make a cash donation to Big Brothers Big Sisters, it will stay with that agency. Cash donations to Goodwill Industries will benefit only Goodwill.

• For donation pick-up services, call Goodwill Industries at 834-1017, Big Brothers Big Sisters at 524-6111.

Goodwill Industries of Hawai'i and Big Brothers Big Sisters of Honolulu, two of the state's best-known nonprofit agencies, hope to extend their reach — and their revenue — through a partnership they will announce today.

The partnership will merge the collection, distribution and sales of donated clothing and household items that both groups now seek as a major source of fund-raising.

The move essentially combines the more extensive truck pickup and delivery system of the Big Brothers and Big Sisters organization with the thrift stores commonly associated with Goodwill.

The financial operations of the agencies will remain separate, but the material donations to either group will benefit both through a revenue-sharing partnership.

Laura Robertson, president and chief executive officer of Goodwill Industries of Hawai'i, said both groups have seen an increasing demand for services as the state's economy has taken a beating. Goodwill served 4,500 people in 2002, more than double the 2,200 people it helped in 2001.

"We have tried to increase donations so that we can increase sales," Robertson said. "This was a really good pooling of resources between two agencies that will help us further our missions."

The partnership, which went into effect Monday, was nearly two years in the making and could represent a larger trend toward mergers and collaborations between Hawai'i nonprofit agencies.

"My view is this is exactly the kind of thing we should hope to see," said Kelvin Taketa, president and chief executive officer of the Hawai'i Community Foundation. "You have two strong organizations that still realize there's a synergy they get by working together. It's a win for everybody."

A study last year commissioned by the foundation said that while nonprofits rank as the state's fourth-largest employment segment and generate $2 billion in revenue, the nonprofit industry needs to be better organized to wield more clout.

The study found that between 25 percent and 44 percent of Hawai'i's nonprofits had no plans for fund-raising, measuring organizational performance, staff training, marketing or operating agreements with other nonprofits.

Hawai'i has an estimated 6,000 nonprofit agencies.

Taketa said the partnership between Goodwill and Big Brothers Big Sisters stands out because both are strong organizations on their own; neither is in dire financial straits or in need of a bailout.

"I think it lends great credibility to both of those organizations from the standpoint of their donors," Taketa said. "They're not just interested in the status quo. They're trying to improve efficiency."

Robertson said the partnership is designed to be long term. "It's an important issue for Hawai'i nonprofits," Robertson said. "I see us as stewards of the public's money. We want to make sure we're maximizing the funds we have to spend."

Last summer, two other nonprofit organizations merged in an effort to increase programs and services for the disabled.

Easter Seals Hawai'i and Special Education Center of Hawai'i, also known as SECOH, joined under the Easter Seals name to operate with an annual budget of $13 million.

Easter Seals had concentrated on programs for children with disabilities, while SECOH focused its programs on adults, officials said.

Previously, Easter Seals Hawai'i served 1,200 men, women and children statewide each year, and SECOH served more than 200 people on O'ahu.

"My hope is through the leadership of Big Brothers Big Sisters and Goodwill, and SECOH and Easter Seals, other nonprofits will be encouraged to think about how to partner up," Taketa said.

To accommodate a doubling of its inventory, Goodwill Industries started preparing for the partnership a year ago with the opening of the new store on Beretania. In October, a 15,000-square-foot thrift shop opened in Kaimuki.

Customers should see a difference now, Robertson said. Items collected by Big Brothers Big Sisters on Monday are already in Goodwill stores. Workers will put out fresh merchandise at the stores twice daily Monday through Saturday and once on Sundays, she said.

Donations given to Big Brothers Big Sisters previously were sold to the thrift store Savers. Now all donations to either Big Brothers Big Sisters or Goodwill Industries will go to the Goodwill stores to benefit those agencies.

Big Brothers Big Sisters is a mentoring group that partners adult volunteers known as "bigs" with children ages 6 to 16 from single-parent homes known as "littles." This is its 40th year in Hawai'i.

Goodwill Industries provide small classes, on-the-job training and placement services to people with disabilities and other barriers to employment, including welfare dependency, illiteracy or a lack of experience. It has been in Hawai'i since 1959.

Reach Jennifer Hiller at jhiller@honoluluadvertiser.com or 525-8084.

Correction: The Special Education Center of Hawaii joined Easter Seals Hawai'i last year. Incorrect information was given in an earlier version of this story because of a reporter's error.