I Am Going to Tell You a Secret… Come closer.
Because what I’m about to tell you might just change the way you think about funding in the nonprofit sector.
You won’t hear this in public statements or press releases. But behind closed doors, in quiet conversations with donors, something big is happening.
Since the USAID funding freeze and the wave of government aid cuts, donors are not just reacting—they are rethinking everything.
Here’s What We’re Seeing—But No One Is Saying Out Loud
Some donors are stepping up—and giving more. Not all funding is drying up. Some donors see the crisis and are increasing their contributions. They’re not waiting for governments to fix things—they’re stepping in. Like Bloomberg, MacArthur and Rockafeller, they are strategic, focused, and watching closely where their funds go.
Many donors are doubling down on their existing partners. If you’re an NGO chasing new donors but ignoring the ones you already have, you’re making a mistake. This is not the time to let relationships go cold. Stewardship is everything.
Some donors have pressed pause—but not for the reason you think. It’s not that they don’t want to fund. They’re simply stepping back to reassess. Some will return to the table—but only for those who prove their value.
Donors are watching—and thinking locally. Here’s something fascinating: donors especially from the Gulf region are looking closely at the localisation agenda. They want their money to go directly to local actors, not just large INGOs with expensive overheads. For those who have always said “localisation is coming,” I have news for you: it’s already here.
Unrestricted funding is no longer a fantasy. For years, nonprofits have begged for unrestricted funding—and donors have resisted. Call it the Mackenzie Scott effect. That’s changing. More funders now see the value in giving flexibility to organisations that have proven their impact. This is a moment to have real conversations about trust-based philanthropy.
Big INGOs are under scrutiny. Let me be blunt: donors are asking where their money is really going. They’re questioning high overheads, big headquarters, and complex structures that eat up funds before they ever reach communities. Some are pulling back, redirecting funding to leaner, more agile, and more locally-led organisations.
What Does This Mean for Nonprofits?
Love your existing donors—deeply. Keep them engaged, updated, and valued.
Prove your impact. Show them exactly how their money makes a difference.
Make the case for unrestricted funding. The door is opening—walk through it.
Strengthen your localisation credentials. Donors are watching.
The funding landscape is changing. Those who listen, evolve, and act—will emerge stronger than ever.