As of March 13, 2025, the U.S. Agency for International Development (USAID) has faced rather huge changes, including a 90-day freeze on foreign development assistance and efforts to dismantle the agency. This has led to a ripple effect across the nonprofit sector, with many NGOs losing a cornerstone of financial support. For some NGOs, it’s imperative to seek alternatives to USAID due to their overreliance on a single funding source.
The closure has urged organizations to rethink their funding strategies (and their funding transparency), and (finally) go for diversification to ensure financial sustainability.
For instance, In response, Ghana’s President John Dramani Mahama has directed the country’s Finance Minister Cassiel Ato Forson to bridge a $156 million funding gap caused by the freeze which threatens critical sectors, including agriculture, healthcare, education, and governance.
In this article we’ll offer you not only the top 10 impact investors supporting NGOs, but also more grassroot ways (which is sustainable on the long term) to assure funding.
Which NGOs are Affected?
In order to understand the magnitude we added a table below summarizing where USAID funding was most directed in Fiscal Year 2023, based on available data up to March 13, 2025. It shows the most recent full-year data before the agency’s funding freeze and subsequent changes.
You’ll find the top recipients by country, derived from sources like ForeignAssistance.gov and related analyses. Note that USAID disbursed approximately $43.8 billion of the total $71.9 billion in U.S. foreign aid for FY 2023, with the remainder managed by other agencies.
As a result, the cutting of course first of all affected all NGOs active in these regions, and these are the ones in urgent need to find alternatives to USAID.
| Country | Amount (USD) | Notes |
|---|---|---|
| Ukraine | $16.6 billion | Largest recipient, primarily for war support and government stability |
| Israel | $3.3 billion | Consistent military aid, aligning with historical trends |
| Ethiopia | $1.7 billion | Humanitarian assistance, focus on poverty reduction |
| Jordan | $1.2 billion | Support for stability and development in a key ally |
| Afghanistan | $1.1 billion | Post-Taliban aid, despite withdrawal, for humanitarian needs |
| Somalia | $1.0 billion | Addressing conflict and food insecurity |
| Democratic Republic of Congo | $936 million | Humanitarian and development support in a crisis-hit region |
| Syria | $850 million | Aid for conflict-affected populations |
| Nigeria | $800 million | Focus on health, poverty, and security challenges |
| Yemen | $780 million | Humanitarian aid amid ongoing conflict |
| South Sudan | $740 million | Support for food security and post-conflict recovery |
Of the $71.9 billion in U.S. foreign aid for FY 2023, USAID distributed $43.8 billion across 160 countries and regions, with the rest handled by agencies like the State Department.
Nearly two-thirds of USAID aid concentrated in Europe/Eurasia (driven by Ukraine) and sub-Saharan Africa (e.g., Ethiopia, Somalia).
The “other 46 billion” often cited in articles (e.g., from a total budget of $72 billion) includes administrative costs, smaller disbursements to over 100 other countries, and multi-year commitments not fully reflected in annual figures. However, precise breakdowns beyond top recipients are less clear due to the funding freeze and data gaps post-USAID restructuring.
Below is a table summarizing the detailed impact of USAID funding cuts on specific NGOs, based on the information we found. The table includes the NGO name, affected countries, details of the impacted projects or services, the number of people affected, and the source of the information.
| NGO/Aid Group | Countries Affected | Impacted Project/Services | Number of People Affected | Source |
|---|---|---|---|---|
| Action Against Hunger | Congo, Haiti | Stopped treating tens of thousands of malnourished children (May); lost nutritional support | Tens of thousands, 13,000 | Trump’s permanent USAID cuts slam humanitarian programs worldwide – AP News |
| International Rescue Committee (IRC) | South Sudan, Sudan, Nigeria | Closed health care and nutrition (South Sudan); 90 communal kitchens (Sudan); food assistance stopped (Nigeria, by April) | 115,000 (South Sudan), 500,000 (Sudan), 25,000 (Nigeria) | How the gutting of USAID is reverberating around the world – OPB |
| United Nations Population Fund (UNFPA) | Bangladesh, Yemen | Lost access to maternal health, violence protection, reproductive health, rape treatment | 600,000 (Bangladesh), 220,000 (Yemen) | The Life-Saving Programs Disappearing as a Result of the USAID Funding Cuts – U.S. News |
| Doctors Without Borders (MSF) | Syria | Shutdown of health clinics and main referral hospital | 2.5 million | Nearly all USAID programs have been cut by the Trump administration – NPR |
| Mercy Corps | Kenya | Lost access to food and nutrition support | 600,000 | Shutting down USAID makes the U.S. less safe – American Friends Service Committee |
| Border Consortium | Thailand | Hospitals for Myanmar refugees shuttered | 100,000 | Trump’s permanent USAID cuts slam humanitarian programs worldwide – The Washington Post |
| Humanity & Inclusion | Philippines, Vietnam | Stopped disaster warning systems for disabled, caregiver training, at-home care | Not specified | What Does USAID Spend Money on? List of Potential Cuts – Newsweek |
Where specific numbers are provided (e.g., 13,000 in Haiti for Action Against Hunger), they are listed alongside broader estimates (e.g., tens of thousands in Congo). Some NGOs, like Humanity & Inclusion, did not specify exact figures.
Impact Investing & Venture Philanthropy as Alternatives for USAID
Impact investing attracts capital from investors seeking both social or environmental impact and financial returns. Venture philanthropy, a subset of this, offers not only funding but also strategic guidance, fostering long-term sustainability. Specific impact investors include:
| Impact Investor | Focus Area | Details |
|---|---|---|
| Acumen Fund | Tackling poverty | Supports sustainable business models, e.g., healthcare NGO scaling in rural areas |
| Blue Horizon Corporation | Sustainable food systems | Invests in initiatives for sustainable agriculture |
| Root Capital | Agricultural enterprises in developing countries | Provides loans, e.g., partnership with agricultural NGO in Latin America for farmer training |
| Ford Foundation | Social justice | Committed to funding social justice initiatives |
| Omidyar Network | Innovative solutions to global challenges | Supports innovative projects addressing global issues |
| Rockefeller Foundation | Sustainable development | Long history in promoting sustainable development projects |
| LeapFrog Investments | Financial inclusion in emerging markets | Focuses on financial inclusion initiatives |
| Global Impact Investing Network (GIIN) | Connecting investors with impactful projects | Serves as a hub for impact investment opportunities |
Impact investors like Blue Horizon Corporation, which focuses on sustainable food systems, indeed offer new opportunities for NGOs active in agriculture development. The company’s new focus is part of a broader trend toward integrating environmental sustainability into funding models. So if your NGO is reliant on traditional aid, then this is a potential avenue to find alternatives to USAID.
Other Funding Sources as Alternatives to USAID: A Detailed Breakdown
The halt in USAID funding also showed that reliance on a single source is perilous, especially with geopolitical shifts. This is particularly relevant given reports of hospitals closing in Thailand and clinics shutting in Malawi due to funding cuts. Instead of just focusing on traditional aid, there are also other ways to get your NGO back on track. It will demand effort, but on the long term this will literally pat off.
NGOs can explore a range of funding alternatives, categorized into conventional and innovative approaches, to replace or supplement lost USAID funds. Below is a detailed examination of each option, supported by examples and insights.
Diversifying Funding Sources
As said before, reducing reliance on a single donor is crucial, especially in an environment where governmental support can fluctuate. We encourage NGOs first of all to assess their current funding and explore grants from other government agencies, foundations, and the private sector. For instance, bilateral aid from countries like the UK (through the Department for International Development, DFID) or Germany (via GIZ) can be a viable option. This approach not only spreads risk but also aligns with global development goals.
Added to this, your NGO might also explore Social Impact Bonds (SIBs). SIBs are performance-based contracts where private investors fund social programs, and returns are paid by the government or other entities if predefined outcomes are achieved. This model has been implemented in various countries to address social challenges.
Corporate and Individual Partnerships
Collaborating with corporations offers multiple benefits, including financial contributions, in-kind donations, employee volunteer programs, and joint initiatives. NGOs should seek partnerships with companies whose values align with their mission, such as supporting education or environmental sustainability.
For example, a company might fund a literacy program in exchange for branding opportunities, enhancing both parties’ visibility.
But that’s not the only way. Engaging individual donors through storytelling via social media, newsletters, and events can also build a loyal donor base. Crowdfunding platforms, such as GoFundMe or Kickstarter, are particularly effective for specific projects, like funding clean water access in rural communities. This method leverages the power of community support and can be scaled through digital campaigns.
Grants from International Organizations
Multilateral organizations also provide significant funding opportunities for NGOs. The United Nations, World Bank, and regional development banks (e.g., Asian Development Bank) offer grants for various development projects, often focusing on poverty alleviation, health, and education.
For instance, WHO provides grants for health-related initiatives, while the World Bank supports infrastructure projects.
It’s advised that in that case, to form alliances with other NGOs to pool resources and apply for larger grants. This collaborative approach can enhance credibility and increase access to diverse funding streams to find alternatives to USAID
Social Enterprise Initiatives
Generating revenue through mission-aligned products or services is an innovative, yet not often used method. NGOs in third world countries already developed social enterprises, such as selling handmade crafts by women artisans or offering eco-tourism services, to fund their operations. This requires market research and a solid business plan.
An NGO focused on women’s empowerment might sell crafts online, reinvesting profits into training programs.
It’s not excluded that such an endeavor could also be started up in other countries, albeit with different products and services.
Time to Step Up and Get Alternatives to USAID Secured
Recent market research indicates the NGOs and charitable organizations market is expected to grow from $331.43 billion in 2024 to $353.21 billion in 2025 at a CAGR of 6.6%, driven by increasing corporate social responsibility (CSR), rising environmental awareness, and economic growth.
NGOs should be prepared for this in various ways:
- Incorporating mobile technologies and applications to simplify charitable donations.
- Considering crowdfunding platforms to attract more investments, with 45% of surveyed NGOs using CRM software to improve donor communications.
- Partnering with corporates for transformative change, aligning with the CSR trend where 76% of companies report on CSR to reduce brand reputation risk.
- Investing in predictive and descriptive analytics for actionable insights, enhancing impact measurement.
As an NGO you should start by assessing your current funding situation, identifying potential donors, and aligning their proposals with the priorities of alternative funders. Engaging in capacity building, such as training on grant writing or impact measurement, can make your NGO stand out.
While the halt in USAID funding indeed presents huge challenges, it also offers opportunities for NGOs to innovate and diversify to find alternatives to USAID. Leverage corporate partnerships, international grants, and impact investing, so your NGO can continue its critical work.
