Recently, every conversation, every post on X and LinkedIn, every article and blog about international aid and development has focused on the USAID freeze implemented three weeks ago. For good reasons, this freeze has significant consequences on people's lives globally - with sudden cuts in the provision of vital services, job losses across the sector, and consequences that we cannot even see yet.
At Kuja, we primarily focus on facilitating global aid and development funds (both direct and indirect) to reach local organizations. Local NGOs represent over 80% of humanitarian actors worldwide, despite receiving a fraction of the funding awarded each year. In this new funding reality, funds will continue to decrease. Yet, we also know that local organizations will continue to operate - even at personal economic risk - because they are driven by people whose hearts are firmly rooted in the places they serve.
The need to localize aid and development is not a new issue, with evidence that localization and funding of local organizations make services more relevant, effective, and efficient. There have been countless studies on best practices for localization and calls for change, including through the development of the #ShiftThePower movement and calls to decolonize aid. We also know what obstacles prevent this localization from becoming a reality. In recent conversations with organizations in Kenya, South Africa, India, Argentina, and Venezuela, the Kuja team heard the described obstacles again - confirming what we know about the sector.
Reliable finances are a barrier. The lack of secure, flexible, and long-term funding forces organizations to constantly seek the next grant. Some organizations find themselves pursuing new grants with rigid deadlines and budgets, limiting their ability to adapt when unforeseen challenges arise. Donor and partner compliance requirements overshadow the mission. Obtaining the necessary accreditation and meeting donor-imposed criteria, providing due diligence documents, and creating required reports take time, money, and expertise. Underfunded operations hinder the ability to secure funds. Unrestricted core funding remains elusive, creating the paradox where organizations hope to grow and reach more people but lack the financial structures and qualified staff to effectively manage larger, long-term grants. Local organizations become training grounds for international NGOs. With inconsistent funding, organizations struggle with turnover of underpaid volunteers and staff. Without available funds to offer benefits like professional development or salaries that compete with those of large institutions, organizations find themselves losing passionate and qualified personnel. Local organizations are more relevant than ever, as they continue to provide support when external actors cannot. At a time when social justice and human rights are being questioned, local organizations are central to holding governments accountable for their actions and providing services to those who are persecuted. As history shows, real change starts at the grassroots. The aid and development community must act in solidarity with grassroots organizations and movements, rather than trying to solve all the problems.
There have been recent calls for philanthropy to "fill the gap" left by USAID and bilateral funding restrictions. The idea that philanthropic foundations can do this is an unrealistic task, especially without incredibly coordinated responses and alignment on who, what, where, when, why, and how. Philanthropy has a role to play, with key considerations to take into account regarding how they can change who and what activities they fund, how they grant funds, and how they partner with organizations. For an excellent resource on implementing these changes, check out the ECFG's Philanthropy Decolonization Framework developed in partnership with members of the Kuja team.
Right now, we have the opportunity to act on years of discussions about power shift and to overturn the system. Infrastructure and ecosystem actors are needed for this change. Some of these actors, including Kuja, provide simple and accessible solutions that address the changes local organizations continue to request. On the Kuja platform, organizations will find tools that simplify grant applications, reduce administrative burdens, and support their growth. Donors also stand to gain by engaging with Kuja: a better understanding of groups that align with their goals, a clearer view of potential funding risks, and assurance that their grants are used as effectively as possible. We are also building solutions that introduce new ways of working, including a reverse Call for Proposals process in partnership with the National Associations Affinity Group (AGNA), the Zambian Foundation for Civil Society Governance (ZGF), the Disaster Preparedness Center (Philippines), Reimagining INGOs (RINGO), and the Pledge for Change.
However, it is crucial to note that the power shift and response to the new realities of our sector will not occur solely through the introduction of smart tools and new technologies. It requires collaboration and concerted efforts for change, realized in community across all the invisible boundaries that exist between local organizations, international NGOs, funders, and others. Kuja is working to create this community at the ecosystem level by organizing webinar events and discussion forums on the most relevant topics concerning power shift - and breaking down these invisible boundaries. We are also collaborating to change some of the main obstacles local organizations face, including partnering with Tech Soup, EPIC Africa, Catalyst Now, and the Hilton Foundation on the Compliance Conundrum to create evidence and momentum for simplifying due diligence requirements.
This moment compels us to reflect on how we, as individuals and as an ecosystem, want to show up for one another. At Kuja, we are working towards a reality where local organizations and movements chart their own destiny. As leaders from the Global South continue to demonstrate resilience and ingenuity, we will rise to match that passion.
For more information and updates on the USAID freeze, here are the spaces we have been following: