Aid cuts push nonprofits to seek new energy and partners on UN sidelines

NEW YORK — In the wake of shrinking foreign aid, nonprofits are seeking new energy and fresh partnerships on the sidelines of the United Nations General Assembly. The conversations unfold amid a global funding squeeze, with attendees stressing that cross-sector collaboration is essential to sustain life-saving programs amid volatile donor landscapes.

A passing comment in a hotel hallway at one of the many conferences during UNGA week may have sparked a practical solution. A global antipoverty nonprofit executive, recently returned from Zambia, noted that a hospital there had just one incubator, warmer and resuscitator for the fifty-some babies born daily. The remark drew the attention of leaders of a corporate-nonprofit alliance providing medical equipment to those in need, and in this case, a response may arrive by year’s end. “It’s very encouraging and inspiring to be here. It feels like a shot in the arm sometimes when the work that we’re doing is hard and the global situation, given all the recent developments, is particularly hard,” said Susana Eshleman, president of Children International.

The hallway moment underscores a broader shift visible at this year’s UNGA-related programming: a pivot toward pragmatic, focused and galvanizing discussions that emphasize the roles companies and philanthropies must play in shaping an uncertain future. While aid cuts have tightened the operating environment for many groups, conversations—whether in private salons or in plenary rooms—tend to begin with the impact on a specific organization and quickly move to pivots, partnerships and current needs.

Former President Bill Clinton opened the Clinton Global Initiative annual meeting with a broad list of global concerns, but closed with a call to action: “Be caught trying.” Philanthropists’ interest in engaging with the private sector was evident in some of the week’s high-profile announcements. At his global forum on Wednesday in The Plaza Hotel, billionaire Michael Bloomberg unveiled a new partnership with the African Development Bank Group to bring more investment to the continent. “There’s certainly no shortage of challenges to discuss over there,” he said, referencing the U.N. headquarters. “But the truth is, in a world that’s more interconnected and fast-moving than ever, the biggest problems can’t be solved by national governments alone.”

At the Clinton Global Initiative, retooled this year to emphasize working groups, ballrooms across the New York Hilton Midtown were packed with front-line workers, policy experts, foundation donors and NGO representatives. They were divided into groups focusing on specific problems and potential solutions, yielding a flurry of new initiatives, from a social enterprise fund from Kiva Microfunds alongside corporate foundations to a Global Network for National Service.

At Rockefeller Foundation headquarters, former heads of state, major foundations’ leaders and global health experts gathered to reimagine development systems weakened by aid cuts. The Rockefeller Foundation committed $50 million to the effort, with Rajiv Shah, its president, saying the funding would help upgrade an early famine warning system created by USAID and diversify financing so no single political party can derail it.

The Clinton Health Access Initiative announced a partnership with Dr. Reddy’s Laboratories, Unitaid and Wits RHI to provide Gilead Sciences’ HIV prevention drug lenacapavir in 120 low- and middle-income countries. The Gates Foundation announced a similar deal with Indian pharmaceutical manufacturer Hetero Labs, and Bill Gates pledged $912 million to the Global Fund’s replenishment campaign to fight AIDS, malaria and tuberculosis.

But for all the talk about the importance of non-governmental funders, philanthropic leaders stressed that they cannot do the work alone. Gates Foundation CEO Mark Suzman cautioned that philanthropy can’t bridge the funding gap by itself: “There is no possible way any philanthropy, any combination of philanthropies, can fill the gap.”

International Rescue Committee CEO David Miliband, who reported a $600 million reduction in U.S. grants, warned that aid is being spread too thin. He urged the sector to deliver assistance more efficiently through new technologies and to explore alternative financing streams, calling on wealthier nations and philanthropic actors to embrace broader cooperation. “We’ve got to embrace innovation. And we’ve got to persuade newly wealthy countries—like those in the Gulf would be one example—that there’s a real potential to have lifelong impact on the people we’re helping,” Miliband said, adding that philanthropy should be engaged in the countries where aid is needed.

The week’s conversations also touched on the practical barriers to scaled impact, from visa difficulties that forced some organizations to travel with smaller staff to concerns about whether the UNGA itself would proceed smoothly. USA for UNHCR Executive Director Suzanne Ehlers noted a sense that the multilateral system was under pressure, saying some partners felt a withdrawal from governments and a “depression” about the state of global governance. Yet she also described a countervailing momentum: many philanthropic and private-sector actors are “really trying to lead now in difficult times.”

“I have no time for depression,” said Kitty van der Heijden, UNICEF’s deputy executive director for partnerships. She warned of at least a 20% revenue cut next year and outlined staff reductions and efficiency measures, but also emphasized that the week’s events showed renewed determination to build cross-sector coalitions. “We cannot do it alone.”

Looking ahead, observers say the challenge will be identifying who actually has the resources to deploy in this new aid landscape. Charity Wallace, a former Laura Bush adviser and founder of Wallace Global Impact, noted that many donors are recalibrating expectations and seeking scalable, sustainable approaches that blend private capital with public and philanthropic support. “Frankly, some people bemoan, as if it was still February and we wish that USAID still existed,” she said, but added that the reality is that funders must step up in different, more strategic ways.

Matt Freeman, executive director of Stronger Foundations for Nutrition, said UNGA weeks in the past often featured overlapping events chasing the same limited audience. This year’s gatherings, he observed, carried a stronger spirit of collective action and coordination, a sign that stakeholders increasingly recognize the value of aligning goals rather than competing for visibility. “That’s been really heartwarming,” he said. “Because you could imagine in a moment of scarcity that everyone’s elbows become sharper and they’re fighting for the pie.”

UNICEF officials also highlighted a tension between the need to conserve resources and the imperative to keep essential programs funded. As conversations continued, stakeholders stressed that while aid cuts have forced hard choices, new partnerships and financing models could help preserve gains in health, education and humanitarian protection. Ehlers and others emphasized that the current moment is a test of global resilience: whether foundations, philanthropies and the private sector can mobilize enough durable support to sustain critical work when traditional government funding becomes uncertain.

As the week wraps, analysts say the overarching message is clear: the world’s most urgent challenges require a more integrated, cross-border response that leverages the strengths of governments, donors, nonprofits and the private sector alike. The hopeful strand running through the sessions is that, even amid funding volatility and political headwinds, UNGA week is catalyzing concrete deals that could extend aid reach, speed up innovation and unlock new streams of capital for a more resilient global response to health, climate, displacement and development.

(Associated Press)