HONOLULU (KHON2) -- Around this time of year, Hawaii nonprofit organizations hold their fundraisers. But financial challenges are unprecedented, especially in Hawaii where the community is weathering several crises. To survive, nonprofits are getting creative. Get Hawaii's latest morning news delivered to your inbox, sign up for News 2 You In their office space at Windward Mall, final preparations are being made for the Aloha Diaper Bank's benefit gala being held Saturday at the Ala Moana Hotel. The festivities behind the event mask the serious challenge the small nonprofit is facing to stay profitable while meeting the growing need in the community. Hawaiian Telcom opens grant applications for local non-profits "It's been kind of nail-biting to get people to come and support us and because we're small, we don't a lot of people don't know who we are," explained Annie Komatsu, executive director of the Aloha Diaper Bank. The Aloha Diaper Bank, which provides free diapers to families in need, is one of about 7,000 nonprofit organizations in Hawaii. All of which face significant fundraising challenges as inflation, lingering effects of the pandemic and the Maui wildfire take a toll on donor generosity. "These shocks just make it that much more difficult and we also see giving patterns shifting in response to these shocks. So nonprofits have to adapt that way," said Melissa Miyashiro, President and CEO for the Hawaii Alliance of Nonprofit Organizations. Miyashiro pointed out that competition for grants is getting harder and corporate budgets are also tightening at the same time a new generation of donors have a different giving style. "We know that younger donors are really interested in the stories behind the work, and you know the specific impact and specific communities and really seeking value alignment so nonprofits are having to shift again with limited resources and live in limited staffing, having to adapt to new preferences from a new group of donors," said Miyashiro. Meaningful Hawaiʻi experience: HTA connects visitors with volunteer opportunities Despite the challenges, smaller nonprofits are getting creative, working with private and other nonprofit partners, something we'll likely see happen more often. "It's actually Valerie Joseph and Kristen Lei that came up with the idea (of a fashion show) and like, 'Let's collaborate together and let's us help you to fundraise.' So it's not just a fashion show. It's more than that. And I think people want to come out and see other things that are exciting and entertained as well," said Komatsu. There's no current data on how many nonprofits have folded in Hawaii in the last few years and the future remains uncertain for any changes in the economy. Miyashiro said HANO is looking into ways to build resiliency within the nonprofit sector, including diversifying revenue sources and encouraging employment retention. "They really hold up so many critical services in our communities. So ensuring that the sector is strong and fortified is absolutely critical for our quality of life in Hawaii," said Miyashiro. Find more Hawaii, Oahu, Maui and Kauai news here HANO is working on a State of the Sector report to provide a better understanding of what is happening in the nonprofit sector and develop solid data behind the shifts happening within these organizations. They hope to release the report in early 2025.