I’ve worked in international development for two decades, and I’ve never seen anything like what’s happening right now. The stable funding environment we all relied on is collapsing faster than anyone anticipated. And unlike previous fluctuations, this isn’t temporary.
Let me share what I’m seeing from the inside.
For decades, development organisations could count on a relatively predictable source of income: Official Development Assistance (ODA) from North American and European governments. Planning cycles were consistent, priorities shifted gradually, and organisations that learned the system could build sustainable operations.
That world is gone.
Across 16 major donor countries, ODA budgets have plummeted by $34.6 billion — a staggering 17% drop — from 2023 to 2024. We’ve gone from $202 billion to $168 billion practically overnight. And the projections show another dip to $166 billion in 2025.
Think about this: nearly one-fifth of global development funding has simply disappeared.
Why this matters more than you think
As someone who has helped organisations secure multi-million dollar contracts from institutional donors and philanthropic organisations, I can tell you this isn’t just about numbers. It’s about organisational survival.
When I sit down with clients, executive teams at international non-profits and development organisations, I see the same patterns. Most have built their entire operational models around a handful of donors. They’ve specialised in writing proposals for specific funding mechanisms. Their teams know exactly how to report against particular frameworks.
And now those donors are cutting back or disappearing altogether.
One INGO I’ve recently consulted for saw their core DFAT funding cut by 60% with just three months’ notice. Another German consultancy had relied on EU funding for over 15 years, only to discover their entire programme area was being deprioritised.
The question every organisation needs to ask isn’t “When will funding return to normal?” but “What’s our strategy now that normal doesn’t exist?”
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