Why does global development and humanitarian funding continue to fall short? Despite annual discussions on impact, sustainability, and community strengthening, we persist within systems that fail to deliver lasting results.
This urgency prompts me to ponder: What will it take for funding to be genuinely adequate in 2025? The time for action is now. As we enter 2025, we must embrace funding models that are responsive, adaptable, and ultimately transformative. These are the five actions that I see as essential for achieving practical, lasting impact.
1. Shift to flexible funding: a game changer
A few months ago, I met with a local CSO leader in South Africa who shared a compelling story. Her team, working on a health project in a rural area, soon realized their planned approach to reach people wasn’t working. They needed to adjust their strategy instead of following the original plan, which meant they couldn’t adhere to the requirements of the restricted funding. They quickly understood that their approach needed to evolve to reach more people effectively. However, their fixed funding model left no room for this adaptability.
This is where flexible funding is crucial. It’s not just a safety net for when things go wrong; it’s a proactive tool that allows organizations to adapt and innovate as needs arise. By making funds fluid, meaning they can be reallocated and used dynamically in response to changing circumstances, we enable creativity and responsiveness to real-world challenges—making it an indispensable element of funding in 2025.
Take, for example, the Weaving Resilience initiative, a partnership between the Ford Foundation and Humentum. In Southern Africa, flexible funding enabled CSOs to stay on track, even in the face of challenges, by adjusting their approach in real-time. This flexibility led to measurable improvements in project outcomes. A notable example is Oxfam’s Zambia project, which saw a 30% increase in healthcare access. This was made possible by the flexibility of funding, which allowed the project team to adjust outreach strategies based on community feedback. This approach highlights the true potential of flexible funding, and we can look forward to more of these success stories in 2025.
2. Let local voices lead through locally led funding
I vividly recall attending a conference in Zimbabwe where a local organization shared its inspiring success story. Their initiative started small but grew significantly because the funding was locally owned. Decisions were made by those who deeply understood the community’s needs, ensuring the project’s relevance and effectiveness.
Locally led funding—shifting decision-making power and funding to local actors — isn’t just a buzzword; it’s about supporting (And notice how USAID is now shifting more funding and tracking the results in their 2024 report). By funding shifting this, we foster more effective solutions and ensure that solutions are long-lasting.
3. Switch to long-term funding for a better path to sustainability
A few years ago, I visited a project in Sierra Leone that had received one-off funding. Although the project was impactful, it ceased once the funding ran out. The local team struggled to find additional resources to continue their work, so the project’s momentum was lost.
Unfortunately, many organizations face this reality—projects start strong but falter when funding stops. That’s why, in 2025, we need to advocate for long-term, multi-year funding as a sector; to offer it as funders, and to ask for it as an NGO. Long-term funding offers organizations the stability they need to plan, implement, and scale their efforts. It guarantees continuity, allowing for a more significant impact over time.
Humentum’s collaboration with Weaving Resilience illustrates the difference that long-term commitments can make. Projects supported by long-term funding don’t just survive—they thrive. These organizations can plan for sustainability and adapt to changing needs, securing better community outcomes.
4. Focus on Data-driven decision making
I recall a project in Malawi where the team initially struggled with data collection. The team lacked critical insights into their interventions’ performance without early data prioritization. However, as the project progressed, they began to collect real-time community feedback, track healthcare access rates, and evaluate financial performance. This shift allowed the team to adjust strategies based on what they learned.
For instance, when healthcare service utilization dropped in certain rural regions, the team used data to pinpoint key barriers: logistical challenges and lack of awareness. Armed with this information, they adjusted their outreach strategies, organized targeted awareness campaigns, and optimized transportation routes for medical supplies. This data-driven approach transformed their project from isolated actions into a dynamic, responsive strategy that continually aligned with community needs.
This is the true power of data-driven decision-making. By prioritizing data and embedding it into the work—from community feedback, financial performance, or impact assessments—we ensure funding is directed where it will have the most significant impact. Data isn’t just for tracking progress; it’s a strategic asset that maximizes the effectiveness of funds.
5. Build trust: Transparency and accountability are a two-way street
Finally, let’s discuss trust. A funding partner once told me, “We need to see results before we release more funding.” While understandable, this highlights a critical issue: transparency and accountability are often missing in the funding process. Donors want to be confident that their money is being used wisely, and organizations must be transparent in allocating resources.
But it’s not just about reporting; it’s about fostering a culture of accountability. When donors and recipients are held accountable, trust is built, which is the foundation of successful, sustainable partnerships. For example, look at your agreements to make sure all parties are held accountable, not just the nonprofit. Try to meet face-to-face early on in the process and spend some time getting to know each other. It’s much more effective to connect as individuals than organizations.
Humentum has worked extensively to help organizations implement transparent financial processes. The result? Stronger relationships, more sustainable projects, and a sector that prioritizes accountability.
Hope for 2025
2025 presents a pivotal moment for the sector. We can create lasting change by embracing these trends—flexible funding, locally led funding, long-term commitments, data-driven strategies, and accountability. But this is a collective effort. As funding partners, NGOs, and development professionals, we all have a crucial role in driving these trends forward.
Together, I believe we can create a future where funding fulfills its true potential: to drive transformation and strengthen communities.
Ready to act? Make 2025 the year funding works for everyone. Humentum’s comprehensive resources are here to guide you every step of the way.