Nearly all — 94% — of the hundreds of young people who participated in Big Brothers Big Sisters of Cedar Rapids & East Central Iowa’s mentorship program last year reduced their risky behavior, according to data from the nonprofit. The majority — 87% — of participants also demonstrated improved academic outcomes.
Perhaps not surprisingly, the mentorship program is in high demand. “We have seen an increase in parents wanting our services for their child,” said Stephanie Hartson, the organization’s executive director. “Nonprofits are the safety net for our community.”
This is only one example of how nonprofits tangibly, measurably, impactfully serve our community. Throughout the Corridor and beyond, your philanthropic investment enables these organizations to provide food and shelter for our neighbors, mentor young people, support those with special needs, protect nature, make the arts accessible, and so much more.
These benefits aren’t necessarily news. It is noteworthy, however, the extent to which these organizations are under significant, mounting pressure.
Last month, the Greater Cedar Rapids Community Foundation partnered with United Way of East Central Iowa on our second annual impact survey of challenges and opportunities in the local nonprofit sector. We’re grateful for insights from 80 respondents, representing the full scope of our community’s nonprofits, large and small.
In short, nonprofits are being called to do more with less. Over the last year, most respondents — 78% — reported an increase in demand for their programs or services. This might not be surprising, in a time of rising food insecurity and economic uncertainty.
During that same time period of increased demand for services, however, most respondents — 69% — also reported funding cuts. While respondents’ cuts ranged in scope from four- or five-figure sums to millions of dollars, smaller nonprofits generally saw larger cuts when considered as a percentage of their annual operating budgets. For example, nonprofits with annual budgets under $1 million saw funding drop by an average of at least 9%, while their larger counterparts (with budgets exceeding $20 million) saw average cuts of at least 2%.
In aggregate, this mirrors national data: most U.S. nonprofits (81%)saw growing need for their services — and most (also 69%) dealt with funding cuts, according to a new study from the Center for Effective Philanthropy.
Nonprofits’ budgets are often stretched — but this time seems especially acute, and the can-do altruism that fuels so much of nonprofits’ work is fraying. Nonprofits are businesses, too, and in many instances, their numbers just aren’t working.
“Without sustainable funding,” one survey respondent wrote, “the amount of work will not change, and we will have issues with worker burnout, turnover, and services not being provided.”
“Less funding but more people in need,” another said succinctly.
Of the nonprofits that saw funding cuts over the last year, most have been unable to offset the loss. Individual donors have certainly stepped up, and nearly two-thirds of respondents saw increased giving from generous donors in the Corridor and beyond. But even so, this has not filled the gaps left by reductions in business and government support, the survey’s most frequently cited sources of cuts. Additionally, the Lilly Family School of Philanthropy at Indiana University estimates that the 1% floor on corporate charitable deductions enacted as part of the “One Big Beautiful Bill” will further decrease corporate giving by $1.55 billion annually.
In the short term, many nonprofits have coped by tapping their cash reserves — the most common tactic, according to the survey. While our survey did not dive into the extent of respondents’ reserves, these are notoriously limited in the nonprofit sector. More than half of U.S. nonprofits have three months or less of cash on hand, according to a 2025 study by the Nonprofit Finance Fund.
Where is this heading? The themes of resilience, resourcefulness, and dedication to serving our community were abundantly clear throughout the survey responses. Several respondents are exploring ways to further streamline their already-lean operations, as well as considering potential collaborations — or even mergers — with peer organizations doing similar work.
Even so, the results beg the question of how far the nonprofit sector can be stretched, and the threat of nonprofits being forced to scale back services is real and growing. More than one in five respondents have already done so, according to the survey, and more are considering this path despite growing need.
Our constellation of nonprofits is part of what makes this such a vibrant community. The survey reaffirmed how much your support — whether through your company or your personal philanthropy — impacts nonprofits and shapes their capacity to serve the community, especially during times of economic uncertainty.
“These aren’t charities to toss money at,” one respondent wrote. “They are investments in our community that are essential.”
Joe Heitz is the vice president of community impact at the Greater Cedar Rapids Community Foundation.
