A weak nonprofit sector produces a weaker regional economy, as the sector functions as economic infrastructure, not charity on the margins. Local data confirm nonprofits directly support jobs, household income, consumer spending, and workforce stability. Businesses require all these things to grow and thrive.
In the last year, the stakes have risen sharply with federal budget and policy changes and price increases. Our 2025 survey found these factors negatively impacted the budgets of 89% of Quad Cities nonprofits. Nearly half expected to close or reduce programs, and about a third foresaw staff reductions.
Those cuts directly translate into greater food insecurity, housing instability, and unmet health needs, conditions that shrink disposable income and weaken the consumer and employment base on which local businesses rely. Federal changes to Medicaid, housing programs, and food assistance planned later this year will compound that pressure.
For employers, this matters in three practical ways. First, nonprofits stabilize the consumer base. Financially stable families spend discretionary income locally; families in crisis do not. Second, nonprofits reduce workforce friction. Food, housing, health, and childcare services eliminate the stressors that drive employees out the door or keep them from showing up. Third, nonprofits strengthen regional attractiveness. Arts, culture, education, and service organizations make the Quad Cities a place workers, customers, and investors choose.
Nonprofit cuts shift costs to businesses and government. When nonprofits cannot absorb demand, employers and public systems face higher need, greater instability, and slower recovery. Likewise, when families lose access to food assistance, housing support, childcare, mental health services, or transportation aid, businesses absorb the consequences with higher absenteeism, greater turnover, lower productivity, and a smaller pool of stable workers.
Quad Cities business leaders have a direct stake in what happens next, yet important community conversations have occurred without them. One Table QC, a cross-sector initiative designed to address challenges to the regional economic safety net, has spent the past year convening nonprofit leaders, policymakers, and concerned citizens to confront these pressures and begin building solutions around food insecurity, workforce instability, housing, and the cascading effects of federal funding cuts on the region’s economic health. That table needs business voices.
Join the conversation. Sign up for updates at www.afpquadcities.com/onetable, review summaries from previous Table Talks at afpquadcities.com, attend our April Advocacy workshop on Tuesday, April 21, at Community Health Care in Rock Island, or join a future Table Talk. The viability of the Quad Cities may depend on it.
Linda Wastyn is president of Wastyn & Associates, Davenport, and co-founder of One Table QC. She can be reached at [email protected].
