State of Quad Cities Nonprofits - September 2025
At a meeting back in February, my staff and I talked about some of the likely challenges with which we thought our clients lived after the barrage of executive orders that the current administration had released at that time. As a group of data geeks, we decided that rather than make educated guesses about their challenges, we would ask them! And so we did.
Like we did during the pandemic, we decided to make this survey a quarterly affair until the crisis had passed. We updated the survey in June as executive orders and funding freezes began to feel more common and again in early September after the passage of HR1. You can find full copies of the reports on our website devoted to federal funding changes.
Since March, we have seen organizations moved from reacting to these emerging pressures to facing entrenched systemic challenges. Financial strain has deepened, stress has become chronic, and client instability has re-emerged. At the same time, costs for purchasing goods and services have increased and organizations have become more focused and vocal about what they need: money, better information, policy awareness, and structured leadership support to adapt to these new systemic challenges.
Perhaps the most striking trend in the survey data since March shows intensified and broadened pressures on nonprofits. The percentage of nonprofits who face funding stress – either they currently feel funding challenges or anticipate them – surged from 50% in March to nearly 73% now, marking it as the single biggest issue nonprofits face. Financial challenges emanate from changes in federal funding and from higher operating costs for goods and service; an increasing number of nonprofits say their costs have soared in the last six months.
These financial pressures intersect with staff well-being and client instability, requiring that nonprofit leaders manage multiple crises simultaneously. Staff stress climbed steadily, reported as a problem by more than 62% of nonprofits and showing the human cost of the financial and operational strain of the last six months.
In response to these intersecting crises, the threat of potential program cuts continues to grow, with nearly six in ten organizations contemplating that reality, 22% more than thought they would need to take that route in March. The threat of staff layoffs and furloughs rose in June but have eased slightly since, suggesting organizations may have adjusted their expectations temporarily or that they have right sized their staff through attrition or other means. The closure risk also remains relatively low and stable, with around 8% of nonprofits fearing they may need to shut down, the same number who voiced that worry in June. Finally, uncertainty dropped sharply since the latest survey. In this tough environment, leaders have become clearer about the challenges they face and the resources they need to face them.
Knowing their challenges provides only one side of the important coin to navigate these treacherous and ever-changing waters. The nonprofits who answered the survey identified the following resource needs to cope with these crises.
Information-driven resources to stay informed about changing grant programs and executive orders, showing a demand for timely policy and funding intelligence.
Developing new funding strategies remains a top need, aligned with the challenge data.
Capacity-building support in areas such as board and legislator engagement and communication planning, suggesting organizations want structured tools to navigate change.
Peer and mental health support, recognizing that staff and leadership fatigue need attention.
I wish I had a magic wand that could make these issues disappear or make them easier for nonprofits to manage. Instead, we have developed an extensive free library of educational resources with short videos and blogs to build your personal and organizational learning. We have also partnered with the Quad Cities Chapter of the Association of Fundraising Professionals to launch the OneTable QC initiative, a forum for nonprofit leaders to engage in cross-sector problem-solving discussions that we will share with policymakers and the public.
While the data reported here and OneTable QC focus locally, nonprofits across the country face similar challenges and can hopefully learn from our experiences and improve their nonprofits and communities. Because communities cannot thrive without a healthy nonprofit sector.
