USAID Funding Freeze: 10 Strategies to Sustain Your Nonprofit

The U.S. Agency for International Development (USAID) has been a cornerstone of global humanitarian efforts for over six decades, addressing critical issues such as disease control, child nutrition, and fostering international goodwill. However, recent developments have cast uncertainty over its future operations.

The Unprecedented Freeze on USAID Funding

In early February 2025, the Trump administration, under Elon Musk's Department of Government Efficiency (DOGE), announced a 90-day freeze on USAID funding. This decision was driven by concerns over USAID's alignment with U.S. national interests, allegations of inefficiencies, and political biases.

The administration aimed to streamline operations, reduce administrative costs, and reallocate resources to more effective programs.

According to Elon Musk, "It's beyond repair."

Implications for Global Humanitarian Efforts

The recent freeze on USAID funding has led to significant disruptions in global humanitarian efforts, including:

• Suspension of Critical Programs: Numerous health, education, and development initiatives have been halted, affecting millions who rely on USAID's support. ?
• Blockage of Medical Supplies: Critical medical supplies are blocked, leading to shortages in essential medicines and healthcare services. ?
• Food Shortages and Malnutrition: Children are suffering from food shortages and malnutrition due to the cessation of food aid programs. ?
• Escalation of Diseases: Aid organizations foresee escalating diseases, as preventive and treatment programs are disrupted. ?
• Impact on Family Planning and Education: Programs supporting family planning and girls' education are severely impacted, hindering progress in these critical areas.

Calls for Self-Reliance in Africa

In response to the funding freeze, former Kenyan President Uhuru Kenyatta has urged African leaders to embrace self-reliance. He stated, "This is a wake-up call for you to know what you’ll do to support yourselves."

A Critical Perspective on USAID's Operations

Steve Kariuki, CEO of Maji na Ufanisi, has been vocal about his concerns regarding USAID's activities. He asserts that the agency has deviated from its original mandate, stating,

USAID, which was established to support key sectors such as the economy, healthcare, education, and emergency humanitarian assistance, is now, according to Kariuki, focusing on activities that don't align with these foundational goals.

Kariuki asserts that USAID has become a "real criminal network," claiming that the agency's operations have been hijacked by interests that promote global instability, rather than the intended development objectives. He believes that USAID has, over time, been involved in supporting political agendas that extend beyond its mission, including backing organizations and causes that destabilize nations through covert operations.

This critique stems from several actions he believes contradict USAID’s charter. For example, Kariuki refers to reports that suggest USAID has been linked to activities that have indirectly funded political unrest, coups, and civil conflicts, under the guise of promoting democracy.

According to Mr. Kariuki, the agency's involvement in foreign political operations — such as funding media organizations and civil activist groups in unstable regions — has led to unintended consequences, including the weakening of governments and the destabilization of regions in the Middle East, Africa, and Latin America.

He also points to the agency’s increasingly politicized focus, claiming that USAID's funds have been misdirected toward global ideological campaigns, including controversial programs that go against local cultures and values, such as promoting gender and sexual orientation policies that clash with those of the host countries. This ideological imposition has led to tensions between USAID and the nations it aims to help.

Moreover, the CEO of Maji na Ufanisi highlights the agency’s increasing involvement in areas that he believes should be handled by local governments and civil society organizations, rather than a foreign entity. This, he argues, has undermined the self-reliance and sovereignty of the countries that rely on USAID’s aid.

In his view, USAID’s expanded reach, far beyond the charitable mandate of humanitarian aid, is an example of foreign intervention that has not only contributed to the suffering of local populations but has also enriched a small elite with access to USAID contracts.

Kariuki’s statements reflect a growing sense of dissatisfaction within parts of the global development community, where critics feel that USAID has moved too far from its original, noble mission of delivering aid to those in need.

As the agency's operations have become more intertwined with the political and economic strategies of the U.S., it risks undermining its credibility and its ability to foster long-term, sustainable development. This criticism is particularly relevant as global funding freezes like the current USAID funding suspension shake the foundation of international aid and development programs.

Ultimately, Kariuki’s comments are part of a broader conversation about the role of international aid agencies in global politics and development.

His call for a return to the core values of humanitarian aid echoes the sentiments of those who argue for more accountability, transparency, and a focus on the needs of local communities.

The Path Forward: Diversifying Funding Sources

In light of these developments, nonprofits must explore alternative funding avenues to ensure program sustainability. Here are some strategies to consider:

In the evolving landscape of nonprofit funding, organizations must adopt diverse strategies to ensure financial resilience and sustainability. Below are key approaches to consider:

1. Diversify Funding Sources

Relying solely on large organizations like USAID can be precarious. By seeking funds from individual donors, corporate partnerships, and private foundations, nonprofits can build a more resilient financial base.

• Individual Donations: Engage with individual supporters through targeted campaigns, events, and personalized outreach. Platforms like GoFundMe have proven effective for specific projects, allowing nonprofits to reach a broad audience. ?
• Corporate Partnerships: Collaborate with businesses for sponsorships, matching gift programs, or cause-related marketing initiatives. Such partnerships can provide financial support and enhance visibility.
• Private Foundations: Apply for grants from foundations that align with your mission. Foundations are required to donate a percentage of their assets annually, making them a consistent funding source. ?

2. Develop Earned Income Streams

Implementing fee-for-service models or establishing social enterprises can generate revenue while staying true to the organization's mission.

• Product Sales: Sell merchandise, publications, or other products related to your mission. For example, the Girl Scouts' cookie sales not only raise funds but also teach valuable business skills.
• Service Fees: Offer workshops, training sessions, or consulting services. Charging fees for these services can provide a steady income stream.
• Facility Rentals: If your organization owns property, consider renting out space for events, meetings, or other activities.

3. Leverage Digital Marketing for Fundraising

Utilizing platforms like Google Ads Grants and Facebook Ads can enhance visibility and attract potential donors. Additionally, crafting compelling email campaigns can engage and retain supporters.

• Google Ads Grants: Apply for Google's program that offers free advertising credits to nonprofits, enabling you to reach a wider audience.
• Social Media Advertising: Use targeted ads on platforms like Facebook and Instagram to promote campaigns and events.
• Email Campaigns: Develop segmented email lists to send personalized messages, updates, and appeals to supporters.

4. Engage in Collaborative Funding

Partnering with other organizations to apply for larger, collaborative grants can increase the chances of securing substantial funding.

• Joint Proposals: Collaborate on grant applications to pool resources and expertise, making your proposal more competitive.
• Shared Services: Offer shared programs or services with partner organizations to reduce costs and expand reach.

5. Implement Membership Programs

Offering subscription models or loyalty programs can provide a steady income stream and foster a sense of community among supporters.

• Tiered Memberships: Create different membership levels with corresponding benefits to encourage higher contributions.
• Exclusive Content: Provide members with access to special content, events, or recognition to enhance engagement.

6. Explore Fiscal Sponsorships

Collaborating with established nonprofits through fiscal sponsorships can provide access to their infrastructure and credibility, allowing new or smaller projects to focus on programmatic activities.

• Shared Resources: Benefit from the fiscal sponsor's administrative support, including financial management and compliance oversight.
• Credibility Boost: An association with a reputable sponsor can enhance your project's credibility and attract funders.

7. Host Special Events

Organize fundraising events such as galas, auctions, or community festivals to engage donors and raise funds.

• Event Planning: Carefully plan events to align with your mission and appeal to your target audience.
• Sponsorships: Seek event sponsors to cover costs and increase profitability.

8. Apply for Government Grants

Explore federal, state, and local government grant opportunities that support nonprofit initiatives.

• Research Opportunities: Regularly check government websites and databases for available grants.
• Compliance: Ensure your organization meets all eligibility requirements and complies with grant conditions.

9. Encourage Planned Giving

Promote legacy giving options, such as bequests or endowments, to secure long-term financial support.

• Donor Education: Inform supporters about planned giving options and their benefits.
• Recognition: Acknowledge planned gifts to encourage others to consider similar contributions.

10. Utilize Crowdfunding Platforms

Leverage online platforms to raise funds for specific projects or needs.

• Platform Selection: Choose platforms that align with your mission and have a strong user base.
• Campaign Strategy: Develop compelling narratives and set clear funding goals to attract donors.

By implementing these strategies, your nonprofit can create a diversified and sustainable funding portfolio, reducing reliance on any single source and enhancing its capacity to fulfill its missions effectively.

A Personal Perspective on Government Spending

As a nonprofit consultant,? I have observed that African presidents are among the most guarded and highly paid leaders globally, despite the challenges of low income per person and subpar living standards. For instance, the Kenyan president has been known to travel with an entourage of up to 30 vehicles, raising concerns about the efficient use of public resources.

The substantial expenditure on such lavish travel arrangements, coupled with widespread corruption and wasteful spending, underscores the urgent need for fiscal responsibility in instances where government offices have spent millions on items like curtains and furniture, diverting funds from essential services.

African nations can reduce their dependence on external aid organizations like USAID by addressing these inefficiencies and redirecting funds toward critical areas such as healthcare, education, and infrastructure. This shift would not only enhance self-reliance but also promote sustainable development and improve the quality of life for citizens.

Conclusion

The recent freeze on USAID funding underscores the need for nonprofits to adopt diverse and sustainable funding strategies. By proactively exploring alternative revenue streams and fostering self-reliance, organizations can continue their vital work and?