Can direct cash transfers shift how local organizations are funded?
Can direct cash transfers shift how local organizations are funded?
Local organizations understand the needs of their communities best, yet they only receive 2.1% of donor money as of 2022, according to research consultancy Development Initiatives. What is preventing international NGOs and implementers from moving the needle? The funding crisis is partly responsible. In 2023, the United Nations received just over one-third of the $57 billion it requested to provide aid, marking its largest shortfall in years. There are also concerns about inefficient use, corruption, and administrative costs, restricting funds from arriving at local organizations. Ultimately, however, funders must be willing to let go of power and lead from the bottom up.