In light of the financial shortfall caused by the Trump administration’s halt on foreign assistance, nonprofits are actively raising funds to support organizations that are grappling with these cuts. Unlock Aid, a nonprofit advocating for reforms in the U.S. Agency for International Development, has initiated the Foreign Aid Bridge Fund. The fund aims to collect donations and distribute grants to international organizations, hoping to mitigate some of the adverse effects of the funding freeze.
Several other groups, such as Founders Pledge and The Life You Can Save, have also embarked on fundraising initiatives. Additionally, the Network for Empowered Aid Response, a coalition of civil society organizations, has started a fund, albeit not accepting individual donations. Meanwhile, GlobalGiving, a nonprofit that supports grassroots organizations worldwide, was among the earliest to launch a campaign to aid affected groups.
President Donald Trump’s executive order led to a 90-day suspension of U.S. foreign aid to assess its alignment with his administration’s policies, resulting in a halt of funds by Secretary of State Marco Rubio. This decision, influenced by billionaire advisor Elon Musk, triggered mass layoffs within USAID.
Walter Kerr, co-executive director of Unlock Aid, acknowledged that the Foreign Aid Bridge Fund alone wouldn’t cover the entirety of the funding shortfall but emphasized the importance of collective efforts during this crisis. An independent advisory panel will decide on the fund’s grant allocations, prioritizing direct service providers and organizations with diversified revenue streams.
In 2023, the U.S. spent $68 billion on foreign aid, making it the largest contributor to global humanitarian responses. Due to the freeze, critical programs such as HIV treatment, disease monitoring, child vaccinations, refugee support, and malnutrition treatments have come to a halt. Many in the international aid community fear that the U.S. funding might not fully recover.
A representative from the State Department stated that the goal is not to end foreign aid, but to restructure it so that it serves U.S. interests and ensures that the aid reaches those in need. A group of nonprofits took legal action against the freeze, and a judge has mandated the resumption of payments by USAID and the State Department.
Organizations such as Founders Pledge and The Life You Can Save have noted significant financial deficits nearing $100 million due to the freeze. Founders Pledge encourages entrepreneurs to dedicate part of their financial gains to charity and curates a list of vetted nonprofit programs for donations. Meanwhile, The Life You Can Save, established by philosopher Peter Singer, endorses charities focused on alleviating extreme poverty.
David Goldberg, CEO of Founders Pledge, expressed their goal to raise tens of millions for their fund. He highlighted that even small contributions can substantially impact lives and emphasized the importance of public support for this initiative. Their rapid response fund has already contributed $100,000, exclusively aiding pre-vetted organizations.
The U.S. funding suspension has had a ripple effect throughout the international development sector, affecting many American businesses and resulting in significant job losses, predominantly affecting organizations based in the U.S.
Victoria Vrana, CEO of GlobalGiving, urged philanthropy and individual donors to rise to the occasion. She recognized that while philanthropy can’t entirely bridge the gap left by public funding, organized and corporate philanthropy should strive to do more.
Unlock Aid has simplified the donation process for its bridge fund, accepting contributions through Every.org, which handles transactions in various forms, from credit cards to cryptocurrencies. The fund is managed by Panorama Global, a philanthropic consulting entity. Amanda Arch, co-executive director of Unlock Aid, noted that their emergency fund is already benefiting from diverse forms of donations.
Furthermore, they sought advice from individuals experienced with mobilizing donor-advised funds (DAF), investment vehicles meant for nonprofit allocations. Donors receive immediate tax breaks by placing money in DAFs, but there is no set timeline for disbursing these funds.
Jennifer Risher, who initiated the #HalfMyDAF campaign during the pandemic, collaborated with Unlock Aid. She and her husband, Lyft CEO David Risher, advocated for donors to allocate half of their DAF contents to charities. As Risher remarked, this effort has facilitated $70 million in donations over four years. She commended Unlock Aid for taking actionable steps and setting clear goals.
