Federal Funding Changes Continue to Reshape Quad Cities Nonprofits

Yesterday we had an inspirational gathering of local nonprofit leaders, funders, legislators and their representatives, and the media to discuss how federal funding changes have and will likely continue to impact the sector and the people who depend on it. While we still face potentially dire and very real consequences from the actions in Washington, I felt hope with such a group of people interested in learning more and potentially working toward some local solutions.

Since March, uncertainty over federal funding has become uncertain-er. Yes, that may not be a word, but these times beg for new language to express what we see and feel. While we do not know exactly what kind of cuts local nonprofits will experience or when they will take effect, we clearly know that cuts have and will come for Quad Cities nonprofits.

Back in March, we reported on our first survey that sought to understand the impacts of the cuts anticipated at that time. Since then, we have all seen so much: so many legal challenges to executive orders that continue making their way through the courts; a rescission bill that moves through Congress, a massive piece of legislation that will likely mean cuts to Medicaid, SNAP, and other federal programs; and so much more.

Although at times Washington D.C. may seem a world away, at this moment we feel its reach extending to our very doorsteps. We feel the squeeze.

If you feel the squeeze, our June follow-up survey drives home that you are not alone. The number of Quad Cities nonprofits already impacted by these changes doubled since March to more than a third of respondents. When we add in the impacts that nonprofits see heading their way, 9 in 10 Quad Cities nonprofits already feel or anticipate changes in their organization due to federal funding changes.

Let that sink in – 90% of local nonprofits will feel a financial pinch from these federal funding changes.

Not surprisingly, these changes will likely bring cuts to services and staff. In fact, today, only 2% of nonprofits say they expect to make no cuts. Most distressing, nearly half of nonprofits in this survey anticipate needing to close or change programs, nearly one-third anticipate laying off or furloughing staff, and nearly one in ten may need to close their doors, all higher than in March.

Think about a community that loses half of its nonprofit programs that feed children and families, provide free medical and mental health care, care for our youngest and oldest residents, and help people find jobs to raise their financial profile. Now imagine that 10% of the nearly 4,000 Quad Cities nonprofits no longer exist. What will we lose with 400 fewer organizations providing essential services like these for our residents?

These funding reductions cut even deeper because of anticipated rising community need. More than one-third of nonprofits in the survey predict a higher demand for their services, 13% more than said that in March. Add to that the furloughed staff from nonprofits who employ more than 40,000 Quad Citians, and that number will likely increase even more.

Not surprisingly, nonprofit staff continue to feel weary and stressed. In our June survey, more nonprofits see higher stress among their staff, leading nearly a quarter of nonprofits to call for more mental health resources. The challenge remains that with fewer nonprofits offering fewer programs, who will provide these mental health resources? It becomes a hamster wheel that keeps perpetuating these challenges.

What a bleak and heavy picture.

However, this bleakness reveals a strength that you may easily miss. Our event yesterday showed us that people who lead Quad Cities nonprofits see these challenges clearly and face them with compassion. They remain committed to finding ways to continue to do all they can to meet Quad Citians’ growing needs.

These needs will continue long after this event becomes a memory. Because of this, the Quad Cities Chapter of the Association of Fundraising Professionals and Wastyn & Associates continues the conversations begun yesterday through OneTable QC: bigger conversations focused on awareness, advocacy, and action around the needs of our nonprofits and the people they serve. OneTable QC invites every Quad Citian to pull up a chair so nonprofits in our two states can share stories across one table and decide together how we move forward.

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