NEW YORK — In response to the financial challenges caused by the freeze on U.S. foreign assistance initiated during the Trump administration, nonprofits are stepping up efforts to fundraise in support of affected organizations. Recognizing that they cannot entirely compensate for the lost funds, these nonprofits aim to mitigate some of the policy’s adverse effects.
Unlock Aid, an advocate for reforming the U.S. Agency for International Development, has recently established the Foreign Aid Bridge Fund to solicit donations. The funds collected will be used to provide grants to organizations worldwide to address some of the crises resulting from the funding halt.
Additional entities such as Founders Pledge and The Life You Can Save have also initiated their own fundraising initiatives. Meanwhile, the Network for Empowered Aid Response, comprising civil society groups from developing nations, has launched a fund but excludes individual donations. GlobalGiving, renowned for its support of grassroots international groups, was among the pioneers in initiating campaigns to back impacted organizations.
President Donald Trump, in his initial executive orders, called for a 90-day suspension of U.S. foreign aid, aligning future aid with his administration’s policies. This action led Secretary of State Marco Rubio to abruptly halt funding. Prompted by advisor Elon Musk, extensive layoffs among USAID staff ensued.
Walter Kerr, co-executive director of Unlock Aid, noted, “The Foreign Aid Bridge Fund isn’t expected to fill the entire gap, but it’s about individuals doing what they can in difficult times.”
An appointed independent group of advisors will be responsible for deciding the distribution of grants, favoring organizations offering direct services and possessing diverse revenue streams. Despite the freeze, the U.S. remains a top humanitarian aid contributor, spending $68 billion on foreign aid in 2023. However, programs addressing HIV, disease monitoring, child vaccinations, refugee assistance, and more have been stalled. Concerns grow within the international aid sector about the full return of U.S. funding.
A State Department spokesperson clarified that the freeze isn’t about ending aid but restructuring it to better serve U.S. interests and ensure effective use of funds, emphasizing aid’s reach to those genuinely in need.
Legal action from a group of nonprofits has led a judge to order the resumption of aid by Thursday. Nonetheless, nonprofits acknowledge the difficulty in matching government funding. Both Founders Pledge and The Life You Can Save emphasized the significance of raising millions to close a $100 million funding deficit for projects they’ve historically supported.
David Goldberg, CEO of Founders Pledge, expressed a desire to raise significant amounts, noting that “even fractions can save lives and prevent needless deaths.” Their rapid response fund has already contributed $100,000, directing funds only to previously vetted organizations.
The suspension of U.S. aid echoes throughout the international development landscape, impacting American businesses and resulting in job losses, as a substantial portion of the aid funds flowed through U.S.-based groups.
Victoria Vrana, CEO of GlobalGiving, urged philanthropy and individual donors to exceed current efforts, highlighting that while philanthropy alone can’t close governmental funding gaps, it can facilitate greater assistance when paired with organized and corporate philanthropy.
To simplify donations, Unlock Aid’s bridge fund is backed by Panorama Global, allowing U.S. citizens to benefit from tax deductions. The donation platform supports payments through diverse means, from credit to cryptocurrency.
Co-executive director Amanda Arch remarked on how donation infrastructure has evolved to allow immediate action in urgent situations through the acceptance of versatile contributions.
Furthermore, Jennifer Risher, who co-initiated the #HalfMyDAF campaign with Lyft CEO David Risher, provided guidance to Unlock Aid. The campaign, which urges donors to distribute half the funds from their donor-advised funds, has seen outstanding contributions, with $70 million in donations over four years.
Risher applauded Unlock Aid’s proactive steps and the establishment of clear goals in addressing the pressing funding needs globally.
