Why Corporate And Government Collaboration With Nonprofits Is Critical

Forbes

22-05-2025

Kendra Davenport is the President and CEO of Easterseals.
Federal funding for nonprofits has been all over the news recently. It's worth remembering that nonprofits not only provide essential services to Americans, but they also help power our economy. These organizations employ millions of people, many of whom deliver critical care to individuals who need it while allowing their family caregivers to go to work.
But nonprofits don't do it alone. The services they provide are often through an impressive collaboration between the business community and federal, state and local officials.
As the president and CEO of a nonprofit that provides life-changing services for people with disabilities, aging adults, veterans, children and caregivers in communities across the country, I know firsthand how nonprofits can improve people's quality of life.
I began working in the nonprofit sector after graduating from college in 1988. Since then, I have worked for multiple domestic and international nonprofits, all of which help fill a pressing societal need—from early childhood education to direct support for people with disabilities. I believe nonprofits are a source of tremendous good that positively benefits our society in countless ways, making them a force multiplier.
Nonprofits across the country support people of all ages and backgrounds, often acting as an extension of the services provided by the U.S. government. Nonprofits address community needs that are otherwise unmet—empowering millions to work, go to school, raise and support families and realize the American dream. They step in when crisis strikes—feeding, clothing, housing, caring for and providing medical assistance to people in immediate need.
Nonprofits also serve as an important bridge to private sector companies with which many of the nation's largest and oldest nonprofits have forged impressive, long-standing and mutually beneficial relationships. Such companies, many household names, play an integral role in delivering in-kind donations of products as well as significant financial support to promote and sustain important programs that benefit millions of Americans of all ages.
Simply put: Government, business and nonprofit collaboration helps provide essential services that strengthen communities and delivers vital services to millions of people across the country.
If you have grown up in America, you have likely personally benefited from at least one nonprofit—Easterseals, the YMCA USA, the Boys & Girls Clubs of America, the Girl Scouts, the Red Cross or any number of other nonprofit institutions, including schools, community centers, churches, museums and hospitals. Nonprofits are part of the fabric and culture of the United States.
The Covid-19 pandemic illustrated how many Americans are just a paycheck away from food insecurity. As the pandemic dragged on, impacting more and more people, nonprofit assistance became essential. Nonprofits helped address this problem by distributing food and other essentials to people through hundreds of food banks, food pantries, churches and community centers. The images of cars lined up to collect food at distribution facilities are etched in our minds—images that reflect the intrinsic good of the American people and underscore the notion that nonprofits are a force multiplier.
Most nonprofits operate with a mix of private funding they raise through the support of corporations, foundations, individual donors and grants from the U.S. government. Many health and human service nonprofits, including ours, rely heavily on other forms of government support, including Medicaid, to pay direct service professionals who provide care for millions of people with disabilities, seniors and veterans. But while our services are partially funded by the government, we also raise money from private entities and individuals. This means we supplement government funding, making tax dollars go further than they would otherwise.
Without the assistance of the country's massive nonprofit community, programs operated by the federal government that provide people with food, medicine, physical and mental healthcare, education, job skills training, crisis intervention, transportation and more would not be able to meet many of our country's needs.
But nonprofits don't just provide critical services that support hard-working Americans; they also play a massive role in our economy.
Nonprofits across America employ nearly 13 million people, accounting for roughly 10% of America's working population. Cutting federal funding for nonprofits will weaken our ability to maintain lifesaving programs while also eliminating many of these jobs. Once those programs are eliminated, families who depend on them to care for children or loved ones will be forced to rethink everything from childcare to eldercare. Many will have to choose between continuing to work and staying home to care for their loved ones. The most disastrous impacts, however, will be borne by the direct beneficiaries of the programs—our most underserved and under-resourced populations—young children, people with disabilities, older people and veterans, to name just a few of the groups for which the risk is greatest.
Nonprofits work every day in service to Americans, often on shoestring budgets with too few staff and typically not nearly enough money. Despite these challenges, U.S. nonprofits do extraordinary things. Easterseals, for example, provides essential disability and community services for 1.5 million people yearly; Feeding America provides food for Americans who don't have enough daily; the Salvation Army provides food, clothing and shelter to those most in need.
Removing federal funding that helps pay for these essential services will create a funding emergency for nonprofits, making immediate layoffs, program shutdowns and closures inevitable. However, this challenging situation also presents an opportunity for businesses.
Now more than ever, their partnership with nonprofits is needed to support local communities. By stepping up to support these organizations, businesses can not only contribute to meaningful causes but also build long-term value by enhancing brand awareness and fostering goodwill, especially at a time when nonprofit organizations urgently need support.
Business leaders, let's keep America strong by protecting funding for the critical programs nonprofits provide to millions of people each and every day. It's the right thing and the smart thing to do.
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