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The Honolulu Advertiser
Posted on: Thursday, November 19, 2009

Guiding charities in rough economic seas

Succumbing to the slumping economy simply cannot become the prevailing pattern for nonprofits in the coming years. Hawai'i, like the rest of the nation, depends on these organizations to fill health and social service needs, as well as to help the arts and other initiatives.

But the recession is decidedly taking its toll on the charity sector, which will need to take guidance from some of the recent research into giving patterns to craft a survival strategy.

National studies show charities draw about three-fourths of their revenue from individual gifts. So it makes sense that the Hawai'i Community Foundation, a charitable services organization, has sharpened its focus on the reasons individuals give.

HCF released a summary of its "Hawaii Giving Study," which tracks changes since the foundation's last study in 2001.

The overall amount of giving, totaling donations of goods as well as cash, has remained stable — a positive omen. But there have been changes owing to the economic downturn and other factors. Church giving represents a larger proportion of the cash total than before, and donors increasingly report responding well to charity pitches from people they know. More than two-thirds say that most their giving was to local groups.

The takeaway lesson from this is that people tend to favor causes with which they are familiar and aligned. And clearly, the personal touch counts.

Charities need to get better at finding potential donors who are sympathetic to their causes. They should partner with other, compatible nonprofits in the effort, leveraging the support that each group draws individually.

And they need to find the best balance in fundraising to avoid charity burnout. There seems to be no compelling reason to pound donors especially hard at the holidays. HCF reports that Hawai'i giving appears neither planned nor seasonal.

Nonprofit executives should be careful not to wear out their welcome. Of the 30 percent that said in the survey they stopped giving to an organization, the No. 1 reason for that is the charity asked for donations too often.

In the next month, Hawai'i Community Foundation plans to start posting findings (www.hawaiicommunityfoundation.org), which should be a helpful resource for charities planning fundraising campaigns.

More than ever, nonprofits need the backing of the community they serve. Those who can give should find ways to maintain that support.

The charity sector can and should take hope in Hawai'i's continuing generosity. But in tough times, they must find the most effective way to tap it.