"I definitely think you will see some nonprofits closing their doors," said Stephanie Meincke, executive director of Arkansas Coalition for Excellence, an alliance of non-profits.
Meincke said the combination of sequestration cuts and caps on tax deductible donations to charities could be devastating.
Central Arkansas charities help hundreds of thousands each year.
"It's a real blessing," said Gerri Ridgell, one of 34 people staying at Little Rock's 20th Century Club, a nonprofit giving out of town cancer patients a free place to stay during treatment.
"The idea of them wanting to cut back on charity the way they want to is just unbelievable," said Gerri's husband John. "It's definitely insensitive."
20th Century Club is just one of many nonprofits in Central Arkansas concerned about its future.
"Just 5% of a $500,000 budget is $5,000 and that would be all of your supply budget or all part time book keepers," Meincke offered.
Larger nonprofits are preparing for the hit as well.
Meals on Wheels serves 600,000 meals annually in central Arkansas, according to Elaine Eubank, CEO of Meals on Wheels' overseeing agency Carelink.
"You start thinking about what your communities would be like without the nonprofits," Meincke said. "What worries me is I think we're fixing to find out."
The charities expect to start feeling the cuts in the next several months.