Reflections on survival post-USAID: How can we adapt?

President Trump’s decision to dismantle USAID has sent shockwaves through the funding landscape, leaving a gap too big for philanthropy or corporate donors to fill alone. This shift forces fund seekers and funders to rethink their roles, relationships, and funding approaches.

Having navigated the 2008 financial crisis, I see familiar patterns re-emerging. Some organisations will scramble to replace lost funds, others will pivot, and a few will seize this opportunity to redefine their strategies. The real question is: who will survive, and how will we evolve?

As I reflect on our new reality, five key themes stand out.

1. From Dependency to Financial Resilience

The dismantling of USAID has underscored a critical point: dependency is vulnerability. Many fund seekers structure their financial models around a dominant funder, assuming continuity. However, those with diverse revenue streams—corporate partnerships, regional donors, or innovative financing models—have historically been better equipped to weather funding shifts. 

This lesson is playing out again, highlighting the urgent need for more resilient, multi-partner funding models. It’s not just about replacing one large donor with another—it’s about building true financial resilience. Fund seekers must rethink their approaches to ensure long-term sustainability.

2. Building Meaningful Engagement

The findings from Gifted Philanthropy's 2025 Trusts and Foundations Insights Survey, conducted before Trump’s re-election in 2025, already highlighted a significant shift in funding dynamics: “78% of fundraisers believed more funders were no longer accepting unsolicited applications. At the same time, 52% of those who successfully secured funding did so through networking and direct relationships rather than formal solicitations.”

This underscores the need for more than networking. It demands active participation in the right conversations, fostering meaningful engagement, and demonstrating value throughout the process—not just at the point of application. Yet, this shift toward relationship-driven funding risks creating an echo chamber where only well-connected fund seekers receive support, leaving newer or less-networked fund seekers struggling to break in.

3. Siloed Ways of Working are Unsustainable

A workshop I attended in January, “Re-Imagining the Business of Impact” (kindly hosted by worldworldXchange), made me reflect on ongoing practices. One discussion stood out: the disconnect between education and business—schools producing graduates who struggle to meet industry needs while businesses lament a lack of job-ready talent. The issue wasn’t a lack of effort but a lack of meaningful dialogue, collaboration, and the persistence of siloed ways of working.

The model of the Collaborative on systemic climate action, where 15 implementing partners joined forces to tackle climate change, is a testament to the power of collaboration. This model breaks down silos, reduces duplication of work, removes competition for scarce resources, and channels work toward one common goal: solving climate change systemically. 

4. Clarity on Value Propositions

Communicating clear value propositions could be the difference between thriving and struggling in this new landscape. 

Is this post-USAID moment an opportunity for fund seekers and funders to reflect on and articulate their value propositions?

For fund seekers, this could mean going beyond outputs to demonstrate systemic impact by showing how their work shifts the bigger picture. It requires being explicit about what sets their approach apart—why their organisation, rather than another, should be funded. It also involves demonstrating cost-effectiveness without compromising impact, proving they can deliver more with fewer resources.

For funders, this also means being more transparent about the specific value they aim to contribute to the ecosystem. 

5. Localisation as a Survival Strategy

The push toward localisation - the shift toward empowering local actors to lead decision-making, implementation, and resource allocation—has been growing for years. It is no longer just an aspiration but a necessity.

One thing is clear: sustainable impact will be driven by those who embed local expertise and center local voices at the heart of their work.

Final Reflection

I still believe that surviving post-USAID isn’t just about replacing lost funding; it’s about reimagining how we work, partner, and relay impact. Funders alone can’t bridge the gap, and fund seekers can’t rely on old models. But I see an opportunity that demands greater adaptability, deeper collaboration, and a genuine commitment to systemic change.

Rania Fazah, Programme Evaluation Expert, and I will explore the localisation theme further during a 60 minute webinar on: April 29th at 11:00 EDT / 16:00 GMT / 17:00 CET. 

To secure your free spot at the webinar, please register here.  

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