The Hawaii Theatre Center has been an extraordinary and successful nonprofit organization.

It began as an ambitious vision to restore and operate the 1922 historic theater to be a catalyst for economic revitalization of Downtown and Chinatown and to serve as a multipurpose first class performance facility for the community.

With the leadership of a stellar board of directors and state legislators, the theatre raised $32 million for the restoration and renovation of this cultural icon.

It reopened in 1996 and for years operated in the black.

It was recognized as the Outstanding Historic Theatre in America in 2006 and received an award from the National Trust for Historic Preservation, and many others.

When I left at the end of the last fiscal year, May 31, the theatre was in good condition, had a real estate "endowment" of three buildings on Nuuanu Avenue, no debt, and $2.3 million in cash in the bank.

After the recent article by Mike Gordon noting staff dismissals amid red ink ("Hawaii Theatre losing 2 staff members to red ink," Star-Advertiser, Jan 23), the following needs to be clarified:

» Nonprofit organizations like Hawaii Theatre must rely on more than earned income. To realize a balanced budget based solely or even primarily on earned income is not realistic.

» The Theatre recently experienced two years where expenses exceeded income, but the audit for the fiscal year ending May 31, 2014, shows $685,747 in the black due to receipt of a large grant from the state Legislature for the installation of a state-of-the-art digital film system.

» Contributions have declined recently, an experience shared by many other nonprofits. Increased competition by Blaisdell Concert Hall has also reduced the number of presenters at the Hawaii Theatre.

» Apparently anticipating significant losses, newly appointed President Ruth Bolan decided to reduce expenses. The community was shocked at the sudden dismissal of two veteran staff members, General Manager and Artistic Director Burton White and House Manager Matt James. Institutional memory, including essential knowledge of the historic theater, facilities management and theater operations, has been lost. New appointments and temporary hires must carry on without help from staff experienced in these tasks.

Also postponed are essential repairs such as the marquee, currently unlighted.

» Running any nonprofit is difficult enough without neglecting major sources of income. Ms. Bolan’s dismissive attitude toward generous bequests such as $1.2 million from a former board member is misguided. It certainly doesn’t encourage future gifts of any size.

The Hawaii Theatre’s administration needs to value the magnitude of leadership, work and monetary contributions by former board members, state and county officials, the general Hawaii Theatre membership and the many volunteers who make things work. It would set the right tone for the future.

I am proud to have been part of the extraordinary group of community leaders who brought the Hawaii Theatre from nothing to its present standing. I trust that the new administration will successfully continue this fine community asset they have inherited.