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V O L . X X I I N O. X X I I G I V I N G G U I D E 2 0 1 6 – 2 0 1 7 70 O N T H E R E C O R D W ith funding dollars in a constant fl ux, foundations taxed by an array of worthy causes and corpora- tions retooling their giving plans, it's an ever-changing world. Recently, Mainebiz had a chance to ask her about the state of Maine's nonprofi ts. An edited transcript follows. Mainebiz: With an estimated 7,000 nonprofi ts in Maine, what's the cur- rent state of the nonprofi t industry? Are there winners and losers? Jennifer Hutchins: Just like govern- ment and business, it is diffi cult to generalize about the entire sector since it represents a vast range of organiza- tions fulfi lling a wide variety of services for Maine communities. Yet there's no question that our public charities continue to feel pressure from declining government support and changes in the way corporations, private foundations and individuals contribute. In our fast- paced world, it's increasingly important for nonprofi ts to stay on top of trends and innovations, yet most of Maine's nonprofi ts are operating with tight mar- gins and often forego investments in professional development and research. As government budgets have tightened, public charities are continu- ally challenged to do more with less. In recent years, one signifi cant sign of stress has been the decline of jobs at social service organizations, which pro- vide critical support to Maine's most vulnerable populations. On the other hand, we have seen job gains among hospitals, educational institutions and arts and cultural organizations. Nonprofi ts that rely more heavily on private support are likely benefi tting from a rebounding economy. MB: In what ways is Maine's situation different from the rest of the nation? JH: Maine has one of the more robust nonprofi t sectors in the nation sup- ported by one of the smallest philan- thropic communities, demonstrating a heightened need to be innovative, adaptive and highly effi cient. ere are nearly two public charities per 1,000 residents, double the national rate. With a relatively small number of people spread across an area equal in size to the other New England states combined, we have particular challenges in service delivery and the amount of available funding. Most of Maine's public chari- ties — 96% — are considered small, with annual budgets under $5 million. But 87% are very small, with budgets under $500,000. Akin to the impor- tance of Maine's small businesses, our small nonprofi ts are supporting essen- tial aspects of our quality of life while creating jobs, developing civic leaders and investing signifi cant fi nancial and human resources in our economy. MB: You've have mentioned the need for collaboration between philanthropic, entrepreneurial and government sectors. What is the best way to facilitate that? JH: In August, MANP attended a joint meeting of organizations from around the United States, repre- senting hundreds of nonprofi ts and foundations. Over and over, people pointed to the need for funders to work hand in hand with nonprofi ts to ensure the most effi cient and eff ective investment in programs and services. Elected offi cials then reported that too often they only hear from one organization with a narrow perspec- tive when they, as policy makers, need solutions for broader needs and opportunities in a community. To take that one step further, I want also to work with innovators who are changing the way the private sector is tackling society's most pressing prob- lems and fi nding inspiring solutions. Developing these relationships across sectors takes time, focused leadership and resources, but convening the most creative, motivated thinkers around shared problems in well-facilitated, neutral spaces can have tremendous benefi ts toward greater effi ciency and eff ectiveness. MB: The nonprofi t sector is often overlooked as a contributor to the economy. What is its economic impact in Maine? JH: Maine's nonprofi t indus- try remains a major economic driver statewide. With over 84,000 employees, one in seven Maine work- ers is employed by a nonprofi t. is represents over 17% of total pri- vate employment, compared to 10% nationally. In 2013, the sector paid over $3.6 billion in wages, or almost 16% of the state payroll. In 2012, pub- lic charities contributed $10 billion to the Maine economy with hospitals — major economic engines in the state — being responsible for about half of those expenditures. A majority of Maine's nonprofi ts receive very little funding from the government and those that do are able to augment governmental impact by leveraging that support with private funds. Most Maine nonprofi ts rely on donations from individuals, private foundations and corporations, as well as fees and service charges. B Y P E T E R V A N A L L E N P H O T O / T I M G R E E N WAY Jennifer Hutchins joined the Maine Association of Nonprofits as executive director in July. She takes over from long-time director Scott Schnapp, who led the organization for 14 years. Hutchins, who led Creative Portland (and its predecessor) for eight years, has big shoes to fi ll taking over for Schnapp. More than that, she faces the task of providing leadership to Maine's diverse roster of nonprofits. With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 With over 84,000 employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in employees, one in seven Maine workers is employed by a nonprofit. This represents over 17% of total private employment. Jennifer Hutchins, executive director of the Maine Association of Nonprofi ts, is an advocate for Maine's nonprofi t industry, which pays $3.6 billion in wages annually.