How can philanthropy respond to the current withdrawal of international aid?

Now, more than ever, the global stage feels dominated by disruption and uncertainty. No matter where you sit on the political spectrum, the actions of Trump 2.0 are having significant knock-on effects in the social sector globally. Which sectors are being impacted, and how might Australian givers respond?

International development

NGOs in developing countries have been forced to quickly react to widespread cuts in global aid. The consequences of this are likely to be ‘measured in myriad lives lost’, according to David Callahan, CEO of Inside Philanthropy, while Mark Suzman, CEO of the Gates Foundation has warned the world to ‘prepare for the first step back in development progress this century’.

How can Australian philanthropy respond? 

• Give (or give more) internationally. Consider allocating a portion of your giving to international communities hardest hit by aid cuts. Join the Australian International Development Network, an impact collective helping givers to engage in more and better international philanthropy, to stay informed and work with others in the sector.
• Back the evidence. With fewer global resources available, it is important to ensure that international funding goes to evidence-based interventions. Australian charitable intermediaries such as The Life You Can Save, Partners for Equity and Global Development Group all have defensible rubrics for the projects and initiatives they recommend.

Civic engagement

The dominance of social media algorithms and their influence on the media landscape has led to acute political partisanship, a loss of faith in civic institutions and increasing social division. The online slew of misinformation and disinformation has left many voters, especially younger ones, highly cynical about their capacity to take meaningful action on the issues that matter most to them.

How can Australian philanthropy respond? 

• Help strengthen democratic integrity. Mannifera is a collective of philanthropic funders committed to supporting a stronger democracy and a fairer Australia. Join their post-election debrief to hear top national thinkers discuss opportunities for strengthening democracy and taking collective action to preserve civil society.
• Build civic engagement capability. Charities driving initiatives that support and empower Australians, especially younger generations, to engage meaningfully with democratic processes include Australian Progress, The Australian Democracy Network, The Menzies Leadership Foundation, The Ethics Centre and Foundations for Tomorrow.

Diversity

While some US observers suggest that Trump’s diversity, equity and inclusion (DEI) rollbacks were long overdue, others are alarmed at the unwinding of hard-won progress achieved in redressing structural racism and sexism experienced by women, ethnic minorities, LGBTQI+ people and other under-represented groups.

How can Australian philanthropy respond?

• Support gender lens philanthropy. Consider participating in Australians Investing in Women, a funder collective that aims to strengthen society by investing in women and girls. AIIW’s Project Portal presents a rich array of ways to improve the lives of women and girls both in Australia and internationally.
• Join funding networks that prioritise diversity. Philanthropy Australia’s First Nations Funder network fosters meaningful and respectful partnerships with First Nations organisations and communities, while Rainbow Giving invests in community-led solutions to the most pressing issues in the LGBTQI+ sector.

Environment

In its first 100 days, the Trump administration withdrew from the Paris climate agreement, removed climate-related content from government websites, and announced plans to withhold federal funding from climate nonprofits. While the recent outcome of the Australian federal election suggests that an anti-climate agenda is not in keeping with community aspirations, an absence of bipartisan consensus on climate policy remains a pressing issue.

How can Australian philanthropy respond?

• Join collective climate funding efforts. The Australian Environmental Grantmakers Network is Australia’s leading funder movement committed to driving a sustainable future that protects nature and secures a safe climate for all, while Groundswell offers a major giving circle for climate-aware givers. Both collectives enshrine First Nations justice at the centre of their work.
• Support bipartisan policy development. DGR Item 1s that foster rational public debate and the development of bipartisan climate policy include Environmental Leadership Australia, Climate Action Network Australia and the Australia Institute.

Be a responsive funder

For many Australian charities, US-driven geopolitical uncertainty and the cost-of-living crisis is driving donations down. Beyond immediate impacts on frontline services and core programming, this volatile operating environment reduces charities’ ability to plan or anticipate where future funding will come from.

As the seismic shifts in the US continue to trickle down to the Australian social sector, philanthropic funders may wish to consider a pandemic-style pivot  as an act of allyship with not-for-profit partners – offering untied funding, for example, longer-term partnerships, or more flexibility in reporting.

Asking charitable partners what risks they are currently managing is a good place to start a conversation. In complex times, philanthropy is often the only source of capital capable of listening deeply and responding flexibly to emergent challenges facing the not-for-profit sector.

If you have any questions about your charitable giving, please get in touch.

Written by Fiona Higgins

Published 14 May 2025