… And what you can do about it
While there may be a slight possibility (very small) that there is some (not much) sense in Trump’s decision to freeze international aid (please bear with me). The act of simply pulling the rug out is likely to have change management experts across the world pulling their hair out.
The good (used loosely)
Some critics of USAid argue that much of its funding is lost in administration costs, inefficiencies and even corruption. And there have been several examples of this, including $43.5 billion in foreign aid to Afghanistan lost between 2001 and 2021 to waste and fraud.
They suggest streamlining or redirecting funds to private-sector-driven initiatives (oh, hey Elon) would be more effective and promote greater self-sustainability. And they might be right. But…
The bad
Foreign aid, when implemented properly, provides healthcare, food security and disaster relief in some of the world’s most vulnerable regions. Cutting it off abruptly has major implications for over 300 million people worldwide who rely on humanitarian assistance.
As Jafar says in the (original, and the best Aladdin), “desperate times call for desperate measures”. And you couldn’t blame people in developing nations for migrating or extremism as a result of sustained poverty and instability.
The ugly
Freezing foreign aid will devastate economies, increase child mortality, fuel public health crises and worsen conflicts, forcing millions into deeper poverty. From collapsing healthcare systems to stalled disaster recovery, the ripple effects will be felt worldwide – hitting the most vulnerable the hardest.
The impact and what you can do about it
If you work in international aid, you can guarantee you – and your donors – will be impacted by Trump’s decision. And the bottom line of all this is that people will suffer.
It’s already happening. At the FIA conference Shanelle was chatting to Pascale from The Fred Hollows Foundation and she said that Trumps aid freeze has left a $7 million hole in their budget. The pressure is now on the fundraising team to raise this money to keep eye programs alive in Africa and Asia.
Action Aid Australia has put out an appeal asking donors to help fund the shortfall as Trump’s Aid freeze will mean the shut down of their programs in Uganda, Afghanistan and the Pacific. Women and girls that are escaping domestic violence, fleeing war and natural disasters or seeking help will have nowhere to go.
So, what can you do about it?
Cry? Get angry? Drink? Yes! But there’s also a few other things.
- Advocate for increased Australian aid: push the government to boost foreign aid to help fill the void.
- Diversified funding: with USAid off the table, you’ll need to seek funding from alternate agencies and international partners.
- Stronger regional focus: consider shifting towards Australia-Pacific partnerships and programs to lessen the fallout of political influences.
- Innovate your fundraising strategies: engage donors through creative campaigns, digital platforms and targeted initiatives that encourage long-term advocacy and support (think regular donors and gifts in Wills). This will help build deeper connections with donors, getting them on board for the long haul, allowing you to plan for the future.
Top tip
Trump’s freeze on foreign aid is overwhelmingly inhumane. It’s devastating for the people who rely on humanitarian assistance and a major disruption for the charities and organisations supporting them.
But it’s also an invitation to innovate, strengthen local networks and push for greater leadership locally. So, strap in and let’s get to work – because if there’s one thing charities are good at, it’s turning a challenge into an opportunity. And nothing worth doing is ever easy.