Nonprofits are underutilized resource

The recent election season reminded voters to ask candidates how they will solve community problems, make government work better and resolve our fiscal problems.

Charitable nonprofits and government serve the same individuals and communities. They are natural allies.

Recognizing that local governments are cash-strapped, the Hawaii Alliance of Nonprofit Organizations (HANO) and its national affiliate, the National Council of Nonprofits, propose three proven, nonpartisan solutions for newly elected officials committed to strengthening communities, improving government and saving money for taxpayers.

» Establish a task force to streamline contracting processes and lower costs.

In Hawaii, this is already a work in progress. Two years ago, the Government Contracting Task Force was created by a Senate concurrent resolution. Representatives from HANO, the Legis- lature and state agencies will recommend to the 2013 Legislature ways to streamline business and reporting processes, reduce burdens on nonprofit contractors and ensure timely contract payments.

» Create a nonprofit liaison in government.

Across the country, few governments tap the expertise and creativity of nonprofits, despite the fact that they employ more than 10 percent of the workforce — 13.7 million workers earning $587.6 billion, which is 9.2 percent of all wages and salaries paid in the U.S. in 2010, according to the Urban Institute.

However, a few inspired government officials have found ways for government and nonprofits to work together on issues that threaten the sustainability of nonprofits on which governments rely so heavily. In 2011, Connecticut’s new governor became the nation’s first to appoint a Cabinet-level nonprofit liaison. Likewise, New York’s governor recently appointed an interagency coordinator for nonprofit issues, responsible for tackling persistent problems that add costs and complicate otherwise effective government-nonprofit relations.

Several years ago, Denver’s mayor created an office of strategic partner- ships to serve as a city-nonprofit liaison to provide a way for nonprofits and municipal staff to understand each other better. Also, the office has trained hundreds of nonprofit leaders how to apply successfully for federal grants and bring new dollars to the city.

Here in Hawaii, HANO applauds several initiatives: Gov. Neil Abercrombie’s decision to name a homelessness czar; his support for capacity-building projects that benefit the nonprofit sector; and the Fair Share Initiative to obtain federal funds, led by Lt. Gov. Brian Schatz, who previously was in the nonprofit sector.

These and other elected officials have seen government and taxpayers benefit when they work with solution-oriented charitable nonprofits. Creating a nonprofit liaison is a constructive way for government and nonprofit leaders to interact, helping government make more informed decisions based on ideas tested by organizations serving the community.

» Extend state small-business programs to small, community-based nonprofits.

Like the best small businesses, nonprofit organizations are dedicated to their communities, are innovative and effective, and provide jobs. According to the IRS, the majority of charitable nonprofits are small: 89.5 percent have annual revenues of less than $1 million. These smaller nonprofits have limited access to credit, pay higher health insurance premiums and need technical assistance — just like small businesses. Government should ensure that all job creators — nonprofit and for-profit alike — can participate in programs to promote economic development, build capacity and find community solutions.

We urge newly elected or re-elected officials to engage with nonprofit community leaders to help solve the most pressing issues of the day. These three simple ideas are proven, nonpartisan solutions that serve the best interests of our communities.