The Trump administration is demanding United Nations agencies and others disclose any ties to communism, socialism, or anti-American entities. One diplomat likened it to McCarthyism, raising concerns about political interference in humanitarian work.
Also in today’s edition: We look at the role of philanthropists in the crisis era, and what Trump means for climate finance.
Did you see Goody Proctor with the devil?
This is a preview of Newswire
Sign up to this newsletter for an inside look at the biggest stories in global development, in your inbox daily.
The Trump administration is rolling out what looks like a loyalty test for charities, nonprofits, and U.N. agencies receiving U.S. funding. Among the 23-question probe: Have you ever worked with groups linked to communism, socialism, or anti-American beliefs?
“It’s multilateral McCarthyism,” one senior diplomat tells my colleague Colum Lynch, likening it to Cold War-era communist witch hunts. The questionnaire digs into hot-button issues such as abortion, free speech, patriotism, and migration — even demanding to know if organizations vet employees for terrorist ties and uphold President Donald Trump’s “America First” values.
One U.N. agency was given a single day to sign and return it but refused. The demand clashes with U.N. principles of neutrality and creates a minefield for aid groups working in conflict zones where cooperation with controversial entities is often necessary for survival.
Not all the questions are political — some focus on risk management and aid sustainability — but the overall message is clear: Fall in line, or lose U.S. funding.
Read: Trump’s new ‘loyalty test’ for UN and aid groups
Donation transformation
As we know, the global aid sector is in crisis. Between Trump’s dismantling of USAID and Europe pulling back, funding is drying up, leaving vulnerable communities stranded and aid workers out of jobs. So can philanthropy fill the gap?
Not exactly, writes my colleague Ayenat Mersie. Philanthropy was never meant to replace government aid — it’s meant to be flexible and innovative. But critics say it often serves donor interests over community needs. If it’s going to step up now, it must shift from top-down, donor-driven models to real, community-led solutions.
“Can philanthropy truly be a force for justice when it’s so often tied to the very elites who’ve benefited from the status quo?” asks Open Society Foundations President Binaifer Nowrojee. Too often, philanthropy funds short-term projects that patch problems rather than fixing them. Graça Machel, founder of the Graça Machel Trust, puts it bluntly: “I want to see social justice between me, as an African, and Soros, who is giving money from where he is.”
This funding crunch is also a wake-up call for the global south, where some leaders are pushing for self-reliance. “Steve Biko’s words have come true: ‘Black man, you’re on your own,’” says Naledi Pandor, chair of the Nelson Mandela Foundation, referencing the anti-apartheid activist who championed Black consciousness and self-determination.
But there’s hope. Africa has a deep culture of giving, with millions supporting family and community. “Every African is a philanthropist,” says Nowrojee. The challenge is formalizing these networks to sustain vital programs. Pandor pointed out that if everyone contributed even a modest sum, many organizations could survive.
Big philanthropy is also evolving. OSF, for example, is moving to five- to eight-year grants and cutting red tape to get money where it’s needed faster.
Beyond grants, OSF is working to influence policy — especially in Africa’s critical minerals sector. “When the Trumps of the world come to take your critical minerals, governments and the mining sector must be ready to negotiate terms that actually benefit Africa,” Nowrojee emphasizes.
Read: As aid dwindles, can philanthropy rewrite the rules of giving? (Pro)
ICYMI: US foreign aid has collapsed. How should philanthropy respond? (Pro)
+ Not yet a Devex Pro member? Start your 15-day free trial now to access the event as well as all our expert analyses, insider insights, funding data, and more. Check out all the exclusive content and events available to you.
It’s giving reinvention
Philanthropy also played big at the South by Southwest, or SXSW, conference and festivals. And donors agreed: The old playbook isn’t working. With government funding shrinking and political scrutiny rising, nonprofits are feeling the pressure. Some fear losing their 501(c)(3) tax exemption status, while others turn to donor-advised funds to sidestep political heat.
Meanwhile, funders are being urged to align investments with their missions, writes Devex Executive Vice President and Executive Editor Kate Warren. “If you’re not thinking about aligning your investing dollars with your mission, then you’re leaving a huge social change lever on the sidelines,” says Sarah Haacke Byrd of Women Moving Millions.
Rather than play it safe, some argue it’s time for bolder risks. “What we’re trying to do at Waymakers is take on a little more of that risk that this moment is placing on the communities in which we’re trying to build," says Joe Tolbert Jr. of the Waymakers Collective. Others warn against clinging to outdated systems. “This is an opportunity that we have to co-create and to imagine new futures,” says Lane Sugata of the Ford Foundation.
Some organizations are flipping the script. The Waymakers Collective lets grantees vote on future grants, shifting power to the communities receiving funding. The Ford Foundation is also embracing community-led grantmaking and guaranteed income programs, while women-led philanthropy is gaining traction — $32 trillion in wealth is set to transfer to women by 2030.
The shift is about trust over bureaucracy. “We invest in the person, not the idea,” says Erika Augustine of the David Prize, which gives $1 million a year in unrestricted funding — no strings attached. “We’ve seen that the impact grows exponentially when you trust community-led processes,” Tolbert adds.
Read: From more risk to less control, philanthropy is rethinking how it works
Tracking the fallout
Trump’s foreign aid freeze — and the countless program cancellations that followed — have left unprecedented levels of food, medicine, and commodities far from those they were intended to reach. Now, USAID’s oversight office is trying to understand where those assets are — and whether they’ve been looted, wasted, or seized by terrorists once the Trump administration cancelled USAID awards.
“The audit objective is to determine the status of USAID-funded physical assets procured under selected awards,” wrote Gabriele Tonsil, the acting assistant inspector general of USAID’s oversight agency, in a memorandum on Tuesday. “As part of this effort, we intend to produce a listing of assets that require attention for proper accounting, transfer, and disposition.”
Tonsil told Peter Marocco, the acting deputy administrator of USAID, that her office will need a list of USAID awards terminated between Jan. 20 and March 11, along with a list of personnel in each region to help them track assets and perform the audit. Last week, Secretary of State Marco Rubio said the number of terminated awards was at 5,200 — an elimination of 83% of the agency’s work, my colleague Elissa Miolene tells me.
“Assets included in this audit may include real property, vehicles, and equipment as well as warehoused inventory like food and medicine,” Tonsil added.
Last time Tonsil’s team — the Office of Inspector General — released a report critical of the Trump administration’s funding aid freeze, the head of the OIG was fired via email with “no reason given,” according to an official familiar with the situation.
ICYMI: Remaining USAID programs now under State Department, 5,200 programs canceled
See also: USAID’s inspector general fired with ‘no reason given’
US exit sparks climate fallout
The Trump administration could slash an estimated 8% of global climate finance, dealing a major blow to developing countries' climate efforts, according to a Carbon Brief analysis.
Under former President Joe Biden’s administration, climate aid reached $11 billion annually, funding programs such as a geothermal project in the Philippines and a water security project in Niger, as well as multilateral funds such as the Global Environment Facility and Green Climate Fund. But the Trump campaign has signaled major rollbacks, including defunding USAID climate programs and halting contributions to international funds.
The U.S. has already pulled out of the U.N. loss and damage fund and Just Energy Transition Partnerships, or JETPs. While the European Commission remains committed, the U.S. exit makes the $300 billion annual climate finance goal set at the 29th U.N. Climate Change Conference, or COP29, even harder to reach, my colleague Jesse Chase-Lubitz tells me.
These cuts could hit Africa, Asia, and small island states hardest, worsening extreme weather and rising seas. Experts warn it may also trigger a domino effect, discouraging other wealthy nations from keeping their commitments.
ICYMI: Trump reneges on $4B in Green Climate Fund financing
In other news
Nearly 40% of global trafficking victims are children, according to a U.N. report warning that traffickers rapidly exploit both technology and emergency situations. [UN News]
Rising temperatures are causing extreme weather swings between droughts and floods in the world’s most densely populated cities, according to a new WaterAid study. [Reuters]
The International Monetary Fund approved a $1.2 billion disbursement to Egypt after completing the fourth review of the country’s economic reform program. [Africanews]
Sign up to Newswire for an inside look at the biggest stories in global development.
About the author
Helen Murphy
Helen is an award-winning journalist and Senior Editor at Devex, where she edits coverage on global development in the Americas. Based in Colombia, she previously covered war, politics, financial markets, and general news for Reuters, where she headed the bureau, and for Bloomberg in Colombia and Argentina, where she witnessed the financial meltdown. She started her career in London as a reporter for Euromoney Publications before moving to Hong Kong to work for a daily newspaper.
