WATERLOO - The need for help is as high as nonprofit leaders can remember, yet their ability to provide a safety net to families stung by hardship remains uncertain.

Cedar Valley United Way President Sheila Baird said fundraising is strong, even after floods, tornadoes and national economic disaster. The United Way is accepting pledges through the end of the month for this year's campaign.

"People that are employed and have jobs, they have been able to see there are friends, neighbors and family members that need a hand up. They are more willing to give a bit more," she said.

But, like other nonprofits in the area, Baird said budgetary weak spots are growing.

Some employers had to scale back on giving this year. The United Way is also keeping a close eye on how many people follow through on pledges.

Baird said she recently received notice a United Way in Florida had to cut its budget 10 percent after too many people did not fulfill their pledges.

"That's a real concern for next year," she said.

Demand for services continues to grow as the economy shows few signs of rebounding.

At Grin and Grow Day Care in Waterloo, some families have lost their eligibility for state subsidized child care because of reduced work hours.

Director Mike Knapp said families that fall below 28 hours per week are ineligible for assistance that can cover 45 percent of child care costs.

"A lot of low-end workers are getting their hours cut, and they're falling below that," he said. "So right now we've got a higher demand for scholarships than we have dollars."

The result: A freeze on scholarship awards when families need them the most.

Nonprofits with investments in the stock market also took a hit last year.

An endowment at the YWCA lost 50 percent of its value when the market took one of its worst plunges in history.

"We'll be lucky to pull $40,000 from the endowment," said Cindy Mohr, YWCA's director.

As a result, the organization has been forced to dip $100,000 into its savings to cover expenses. She expects to pay most, but not all, of the money back.

If budget woes continue, Mohr said, program cuts will come next.

At the Community Foundation of Northeast Iowa, which distributes millions of dollars to programs in the Cedar Valley each year, giving is steady.

The foundation deals with fluctuations in giving by basing gifts on the past two years of revenue, said Mary Ann Burk, president and CEO.

Even so, she said the organization's endowment took a 20 percent hit last year.

If the economy does not turn around in the next 12 months, Burke said the foundation will have to either increase fundraising or make budget cuts.

"We figure this is the time our nonprofits really need funds, so we decided to stay with our plan and not cut back," she said. "But if the stock market and the economy stay down for a long period of time, then we'll have to rely on more gifts to keep grant-making steady."

Contact Jens Manuel Krogstad

at (319) 291-1580

or jens.krogstad@wcfcourier.com.