The funding landscape for humanitarian NGOs continues to change and is becoming even more dynamic and innovative, not only in partnership and collaboration but also for mechanisms for funding.
CID’s 2018 annual survey (on the international NGO sector) showed that while public support is still the largest source of income, a multi-year decline appears to be continuing.
Public donations are now 15% lower than a decade ago. Furthermore, a 2019 research paper on opportunities and challenges of the aid eco-system found that the current system of public donations and rationing of funding, including high transaction costs and short-term planning, encourages competition over collaboration.
There is a sense of urgency for non-profits and NGOs to rapidly attract support. An increasing range of aid actors, including those considered ‘non-traditional’, within a crowded humanitarian space presents both challenges and new ideas as divergent, and indeed convergent, meet. One constant is that donors want to see more NGO cooperation and cohesiveness to ensure that their investment has as much impact as possible, while administrative overheads are further reduced.
Generally, New Zealand NGOs conduct their appeals and emergency fundraising in isolation to each other. Working in relative isolation means that individual NGOs have limited public exposure, fundraising costs are duplicated, and public messaging and advocacy/ awareness campaigns can appear disjointed or ad hoc.