Spending and the local economy

Businesses and people are affected by the economy, and in turn affect each other.

Joe Smith makes more money at his office job and in turn spends more money at the local restaurant. The restaurant then buys more from the local farm in rural Iowa.

That's pretty straightforward and probably not news to you.

What does that have to do with United Way's efforts in the community?

Yes, with your help we do raise funds in annual campaigns at roughly 500 companies in Eastern Iowa. We also still research issues around financial stability, education and health problems.

And we still find the best ways for those funds to be used through our community partners.

The other aspect of what we do involves the local economy - and in turn all of us, whether you own a small business, hire employees or are at a company's C-level.

You work with us through volunteer time, employee and corporate donations. We look at the big picture and find the best places to spend these investments to make the most meaningful change.

Then as people in need get enough support, we hope that they get on their feet to support the businesses and their employees the way that you supported them. This support could come in a couple ways:

•  Spending
•  A larger skilled work force

We do know that 12 percent of the population in Linn, Benton, Iowa, Jones, Cedar and Washington counties struggle with not having enough food. United Way's free 2-1-1 service, which is also now available online at FirstCallforHelpIowa.org, helps families find solutions ranging.

2-1-1 is free to consumers, but is funded directly through your donations.

The center receives more than 50,000 calls a year, and we know it's an important resource for people to move the cycle of growth along. We know that if people can't find the resources they might be stuck in their current unfortunate situation.

That could interrupt the cycle.

Whether people in need go through one of our partners, such as HACAP or the Salvation Army, or end up using their food stamps, this is an important step in completing the cycle.

If people use food stamps, we know there's an immediate economic impact.

We know that every dollar spent in food stamps actually generates $1.50 spent in the community.

In other words, as families use their food stamps they spent more in the community and help the economy.

We do know there's a need in the community.

For example, in Linn County alone there are 5,663 households who receive $174 a month on average in food assistance. Johnson County is the home to 2,156 households that receive assistance.

Housing

When people don't have a stable home situation, it's harder for them to get education to get land better paying jobs or to even stay in a job.

In fiscal year 2011, local programs served 5,802 homeless people. Imagine if even just half of them could up their education, for example, through one of our community initiatives.

They could turn out to be an excellent employee for you. They were just missing some help to get started down the right path.

And missing that step that could interrupt our cycle to recovery.

A larger work force

Along those same lines, we know that by the end of 2014 there will be nearly 12,000 new and replacement jobs that will need to be filled.

Through programs such as the Kirkwood Pathways for Academic Career Education and Employment program and other partnerships, we try to enlarge the talent pool in Eastern Iowa. This can help businesses in the manufacturing, nursing and other fields.

And, of course, once people have better jobs, they can spend more, too.

So just as business owners - big and small - are affected by the economy, so are people in need. All of us together can improve the economy.