Dear Funders, Foundations, and Donors,
Dear Funders, Foundations, and Donors,
Many of you are asking a powerful and necessary question: “What can we do differently?” It’s the right question for these times.
Funding models are under pressure. Global aid flows are shrinking. Traditional pipelines are drying up or being redirected. And everywhere, nonprofits are being asked to do more with less.
At New Global Markets (NGM), we’ve been sitting in rooms where these questions are being asked by several funder. And we’re also listening to those on the ground: local leaders and grassroots organisations who’ve had to adapt, innovate and survive.
From these conversations, the answer is becoming clear. If you want to fund differently, then fund fairly, bravely, and with purpose.
Here’s what you can do:
1. Fund localisation – not just in theory, but in full. Localisation is not a footnote. It’s the foundation. Fund local actors directly. Avoid intermediaries where you can. Prioritise those rooted in the community, who are often closest to the challenge and best placed to deliver impact. The return on investment is also higher.
2. Let go of tight restrictions. Restricted funding limits effectiveness. It prevents adaptation. Unrestricted funding is a lifeline – one that allows organisations to respond to emerging needs, test new approaches, and invest in their own sustainability. We now have seen how not investing in their fabric of organisation is like throwing away money.
3. Back genuinely community-led solutions. If you’re truly serious about innovation, then be prepared to fund ideas that come from the margins. They might be unconventional but they’re also often the most transformative.
4. Blend philanthropy with investment thinking. Combine grant-making with recoverable capital. Offer social investment alongside donations. Support mission-aligned businesses and social enterprises that generate earned income and reinvest it into impact.
5. Support income diversification. Nonprofits must move beyond survival-mode fundraising. Help them build business arms, package their expertise as services, or create products that sustain their mission. Gifted and earned income should co-exist.
6. Align with government systems and national priorities. Siloed programming creates duplication. Partnering with governments ensures that your funding builds into national systems, creating longer-term, policy-aligned change.
7. Respect nonprofit time. The days of 40-page forms and unpaid “proposals to nowhere” must end. If you run a call for proposals, make it targeted. If an organisation puts time into applying, compensate them – especially if they are unsuccessful. Don’t drain what you claim to support.
The old way of working is fading. What’s emerging is a more honest, collaborative, and just funding future. Let’s co-create a funding model that serves the future, not the past.
With regards,
Keith Kibirango
CEO, New Global Markets