The global aid sector is in a deep crisis. With the Trump administration dismantling USAID and European governments pulling back, funding for critical programs is drying up. This is leaving those who depend on aid stranded and pushing many employed in the aid sector out of work. Amid this uncertainty, many are now asking: Can philanthropy step in?
Experts emphasize that philanthropy is distinct from aid — and should be. It has the flexibility to support innovation and was never meant to replace government functions. Yet, as some critics point out, philanthropy has often shaped interventions around donors' interests rather than community needs.
Still, philanthropy has a crucial role to play at this moment. To be effective, however, it must break from past power imbalances. At a panel discussion in South Africa Tuesday, philanthropic leaders argued that the sector must shift from top-down, donor-driven models to more equitable, community-led approaches. One major foundation, for example, is already embracing this approach. The Open Society Foundations, which underwent a major restructuring last year, is now giving long-term core grants to global south partners, as opposed to its traditional global north partners only.