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The Honolulu Advertiser
Posted on: Monday, September 26, 2005

Charities worry about drop off

By Mike Gordon
Advertiser Staff Writer

Some of Hawai'i's largest charitable organizations are worried that the enormous response to Gulf Coast hurricane victims will make it harder for them to help their needy constituents.

The impact from the storms and its unprecedented relief effort could cut into donations, reduce federal funding and make it harder for nonprofit organizations to pay for simple things, like keeping vans on the road if gas prices continue to soar.

The dilemma puts nonprofit organizers in an uncomfortable position. They are trying to balance compassion for the Gulf Coast victims with well-documented needs at home.

Coralie Chun Matayoshi, chief executive officer for the Hawai'i chapter of the American Red Cross, said she has to "be sensitive." But she is clearly worried about the effect in her own backyard.

"We have everyday needs here at home and our local disasters and our readiness for hurricanes coming," she said. "It jeopardizes our ability to keep Hawai'i ready and prepared for our own disasters."

The Red Cross in Hawai'i has raised more than $1 million for Katrina victims, Matayoshi said.

To keep local charities running, though, people will have to give more than they might in a normal year, she said.

Other groups are also concerned. None has a strategy yet.

"It certainly is on my mind, and I suspect it is on the minds of other charities as well," said Susan Au Doyle, president of the Aloha United Way, which raises about $17 million annually from community sources and federal employees across the state.

Sixty percent of people say they give to charity and they will probably continue to make donations, Doyle said.

But she does not know if they can afford to make more than one donation.

"We try to tell those who are able, to remember both," Doyle said. "But for a greater proportion of people it will mean a trade off."

The full impact for AUW, which began its annual fundraising effort a few days after Hurricane Katrina hit, will not be known for months, Doyle said.

"In this catastrophe, the impact we will see will probably be down the road," she said.

But The Hawai'i Foodbank has already seen food diverted, said Dick Grimm, president of the nonprofit organization.

The foodbank receives 14 percent of its supplies from America's Second Harvest, a Mainland group that has diverted millions of pounds of food to Katrina victims, Grimm said. America's Second Harvest recently trucked 18.7 million pounds of food to the south, the equivalent of 14.6 million meals, he said.

"That is going to impact on us, a lot, very definitely," Grimm said.

The Hawai'i Foodbank, which feeds about 118,000 people each week through a statewide network of agencies, bids on supplies that have been donated to America's Second Harvest. It has received cereal, produce, chicken, milk. Last week, 40,000 pounds of apples arrived.

Grimm predicted that corporate America will come to the rescue with food.

"I think you will see a tremendous amount of food coming from American manufacturers," he said. "They are going to make more just so they can donate it to America's Second Harvest."

Maj. Jeff Martin, divisional secretary for programs with the Salvation Army in Hawai'i, said relief efforts for previous disasters did not replace local giving.

But no one has ever seen a disaster like Katrina, he said.

"This is the largest scale we have seen," Martin said. "I am hoping it doesn't affect us, especially our donations coming up toward Christmas which we will depend on to help families."

People who normally give to the Salvation Army might still do so, but instead direct their money toward Katrina victims, he said.

"We have discussed it a little and our thoughts were that in the past, we haven't noticed it has diminished what they give locally," Martin said. "But we do need to keep that thought in the forefront of the minds of donors."

When Salvation Army Santas start ringing bells this holiday season, the charity will have to be sure that donors know where their money is going, Martin said.

"When they see we are making a difference, that appeals to their hearts," he said.

After the terrorist attacks of 9/11, both the AUW and the Institute for Human Services, which cares for the homeless, experienced banner years.

That isn't happening now, said Lynn Maunakea, executive director for IHS.

"I don't know why the difference between 9/11 and Hurricane Katrina but we are seeing a difference," she said. "We are not seeing the same response."

Geri Marullo, president and chief executive officer for Child and Family Service, said the real post-Katrina problem facing charities will come from the federal government and not the empty wallets of the people.

With President Bush vowing to rebuild the Gulf Coast at a cost of nearly $200 billion, other expenditures will be cut, Marullo said. Historically, social services funding is among the first things to go, she said.

"I think we are all going to feel it that way," Marullo said. "I think there will be a reduction of services because of a slowing of federal dollars to the state."

Katrina's effect will be felt as a lot of organizations begin their annual fundraising campaigns. Beth Lum, a fundraising consultant for charitable organizations in Hawai'i, said many are concerned about the timing.

And there are at least 25 groups trying to raise money for new buildings. Their construction costs will soon soar as materials are diverted to the Gulf Coast, Lum said.

Add rising fuel costs and those charities will have to raise more than they planned just to survive, she said.

The solution is to educate donors about the needs, said Lum, who has been a consultant for 12 years.

"The charities that will continue to do well are those who keep in touch with their donors and let them know what their money is going to be used for," she said.

Whether it's Katrina relief or local charities, people in Hawai'i want to help, she said.

"Hawai'i people are generous," she said. "I am positive they will give to both."

Reach Mike Gordon at mgordon@honoluluadvertiser.com.