Financial Sustainability Strategies for NGOs in Crisis

The Kestria NGO & Not For Profit Global Practice Group brought together global leaders to examine how NGOs can strengthen financial resilience amid economic uncertainty and shifting donor priorities. The discussion focused on diversifying funding models, adapting strategies, and strengthening governance and leadership to sustain long-term impact.

Key findings

Diversification is no longer optional—it is essential for survival

NGOs must adopt mixed-income models to reduce reliance on traditional funding.

Donor expectations are shifting toward impact, transparency, and flexibility

Funders increasingly demand measurable impact, accountability, and flexible support.

Leadership and governance must evolve to build resilience

Stronger governance and more agile leadership are critical to navigate uncertainty.

Diversifying revenue streams beyond traditional donors

Which new funding models or partnerships can help NGOs reduce reliance on traditional donors?

Fiona Ross, General Manager at New Zealand Red Cross, New Zealand, reflected on where the most promising new funding streams are emerging, stating that: 'Financial resilience is a priority as shifting government funding and rising living costs reduce donors’ capacity to give.

While government funding and public appeals remain important, both are declining, prompting us to renegotiate contracts, redesign programs, and explore new partnerships.

Strategic positioning, combined with transparency and clear communication, is essential to maintaining donor trust.

We are also diversifying income through enterprise models, such as retail stores, to generate revenue and strengthen community engagement.

Overall, we are adapting our funding model to remain resilient and mission-aligned.'

Cwenga Kotu-Rammopo, Co-Founder & Managing Director at Talitha Together, South Africa, outlined realistic pathways for smaller, community-based organisations to diversify revenue beyond traditional grants, noting that: 'For grassroots NGOs, financial sustainability goes beyond securing grants—it requires building resilient, mixed-income models. At Talitha Together, we focus on mission-aligned income streams. Through our skills development programs, teen mothers learn monetizable skills and create micro-businesses, with a small return supporting our organisation.

We also diversify funding through initiatives such as fundraising events, local market sales, subscription-based crowdfunding, and prize-based competitions.

Ultimately, the shift is from reliance on single funding sources to a diversified model that strengthens both the organisation and the communities it serves.'

Aligning strategy with shifting donor priorities

How can NGOs adapt to shifting donor priorities without compromising their mission?

Holly Zamboni, CEO at The Prince of Wales Hospital Foundation, Australia, emphasised that healthcare is one of the most rapidly evolving and disrupted sectors, with change often outpacing the system’s ability to respond. 'In a context of economic uncertainty and rising living costs, donor priorities are shifting toward measurable impact, while public healthcare systems struggle to meet growing demands.

In response, we focus on innovation through research and evidence-based initiatives. Donors increasingly expect transparency, accountability, and clear improvements in patient outcomes.

This requires strong reporting and a shift toward scalable, multi-year projects. For example, virtual healthcare must expand beyond pilots to ensure equitable access.

Overall, our focus is on delivering high-impact, innovative solutions that can be integrated into future healthcare systems.'

Henrietta Bankole-Olusina, Vice President, Africa at Rockefeller Philanthropy Advisors (RPA), Nigeria, described the current period as a highly consequential moment for the sector: 'The sector is undergoing structural shifts driven by regulatory change, geopolitical disruption, challenges in traditional aid models, and the largest generational wealth transfer in history.

At the same time, official development assistance is declining, with the gap increasingly filled by private philanthropy, diaspora capital, and domestic investors—making diversification essential for NGOs.

There is a strong shift toward localisation, with funders prioritising direct support to locally led organisations, alongside growing investment in local intermediaries.

Demand is also rising for flexible, trust-based capital, as short-term funding cannot drive systemic change, increasing interest in multi-year support.

Grants alone cannot meet the scale of need, with growing momentum behind catalytic capital, impact financing, and blended finance—reflecting a shift from charity to capitalisation.'

Fiona Ross finds the global trend toward localisation, and its impact on Red Cross operations, particularly interesting, adding that: 'Although New Zealand is small and already localised, donors continue to give through trusted national organisations like the Red Cross, valuing fair and transparent distribution.

There is a strong emphasis on trust and equity. A recent disaster appeal raised 28 million New Zealand dollars, far exceeding expectations but also increasing scrutiny on fund allocation. In response, we strengthened transparency to ensure support reached underserved communities.

Overall, there is a shift toward localised impact alongside the need for trusted intermediaries.

At the same time, generational wealth transfer will shape the future of giving, as younger donors bring different expectations.'

Strengthening financial governance and organisational resilience

Which governance and financial practices best strengthen NGO resilience in uncertain times?

Holly Zamboni believes it is essential to have board directors with specialised expertise in financial management. 'This is critical given how we manage both operational funds and donor-funded investments that generate returns for future projects, requiring strong fiduciary oversight.

This has shaped our board, which now includes members with private equity and financial expertise to support informed decision-making.

Our governance model is more personalised, relying on transparency and clear communication with donors on fund allocation. This approach has been effective and presents fewer challenges than models where organisations act as intermediaries.'

Marion Wagner, CEO, Breadline Africa, South Africa, outlined the changes being made in response to shifting donor priorities and government agendas, explaining that: 'We do not receive government funding and have operated for 33 years, historically relying on individual donors. As this base ages, we are shifting toward younger donors, requiring stronger storytelling and evidence-based impact.

In South Africa, we also compete with the government for corporate funding in a complex, politically sensitive environment.

Impact bonds have proven challenging due to financial risk. To strengthen resilience, we built an endowment fund to sustain operations for up to three years, though this can affect funding perception.

We have moved away from traditional five-year planning, restructured governance into a smaller, more engaged board, and remain focused on avoiding mission drift.

We are also increasing collaboration through consortium fundraising to deliver larger-scale, mission-aligned solutions.'

Leadership for financial resilience in uncertain times

What leadership approaches are most effective in navigating financial uncertainty while sustaining impact?

Marion Wagner highlighted the restructuring of the leadership model to reduce reliance on a single CEO and mitigate key-person risk, explaining that: 'We established an executive committee (ExCo) of qualified professionals to ensure more balanced and strategic decision-making, supported by a streamlined board structure.

A key leadership lesson has been the ability to say no—remaining focused and avoiding mission drift—while also staying agile. For example, during COVID-19, we rapidly pivoted from infrastructure work to emergency feeding, becoming a leading food supplier and demonstrating the importance of adaptability while staying mission-aligned.

Finally, while growth is often encouraged, it is essential to scale responsibly—remaining lean and building the capacity to expand quickly when funding becomes available.'

Cwenga Kotu-Rammopo emphasised the importance of connecting with the community through storytelling, engagement and transparency about their work and impact: 'Our leadership approach is centered on building trust—first and foremost—with our beneficiaries. Teen mothers are often difficult to reach due to stigma, isolation, and marginalisation, so it is essential to make a deliberate effort to connect with them, support their empowerment, and enable their education and economic independence.

As co-founder and CEO, I ensure our team is aligned with our vision and values, emphasising compassion, integrity, and dignity in all interactions—with both beneficiaries and partners.

Our approach prioritises trust, transparency and consistent communication. Through social media and other platforms, we demonstrate our impact and support adolescent mothers in becoming educated, independent, and successful young women despite the challenges they face.'

Henrietta Bankole-Olusina agrees with Marion’s point about moving away from traditional five-year plans: 'In today’s rapidly changing environment, even short-term strategies are uncertain, requiring leaders to be more agile and flexible, with faster decision-making and continuous adaptation.

The most effective leaders embrace transparency and learning, moving away from rigid KPI-driven models by focusing on both successes and failures, embedding open reflection and learning.

This highlights a key leadership shift: the ability to acknowledge and learn from failure, using it to inform future strategy.

At the same time, successful leaders focus on foresight—looking beyond immediate challenges to long-term trends. Despite uncertainty, particularly with rapid technological change, those preparing for the next 10 to 30 years are better positioned for success.'

What is the single biggest leadership shift NGOs have to make in the next 3 years?

Fiona Ross emphasised the importance of an agile, mission-driven mindset: 'Leaders must stay closely connected to their mission, understanding needs on the ground and communicating purpose clearly.

At the core is a holistic view of well-being—covering people, communities, financial health, and leadership capacity. Leadership should move beyond traditional corporate models and think more like a community—holistic, responsive, and grounded in care.'

Holly Zamboni agreed, highlighting collaboration as a key shift: 'The most significant leadership shift is stepping beyond traditional boundaries and identifying opportunities to collaborate.

This requires open engagement and moving away from competition toward genuine partnership.

By working collaboratively, organisations can achieve greater impact and address more complex challenges.'

Cwenga Kotu-Rammopo underscored the importance of youth leadership:
'As a youth-led organisation, we prioritise empowering both our beneficiaries and our team, ensuring youth leadership remains central. We focus on equipping young people with skills and opportunities to lead, supported by partnerships that help scale impact.

Ultimately, our goal is to enable young people to lead and overcome the challenges they face.'

Marion Wagner emphasised leadership structure and succession: 'We introduced a revised RACI model, shifting delivery ownership to more junior team members to build capability and flatten the structure.

We are also prioritising succession through internal talent development and mentorship. Our focus is on building a sustainable leadership pipeline and a balanced organisational structure.'

Henrietta Bankole-Olusina pointed to a shift in power and capability: 'NGOs must build capacity to engage effectively with funders, despite limited resources.. As trust grows, funders are more willing to shift power, but this requires strong foundations and continuous improvement.

Ultimately, leadership must be agile and responsive in a rapidly changing environment.'

Summary

Financial resilience requires more than stability—it demands transformation. NGOs must diversify income, respond to shifting donor expectations, and strengthen governance, while adopting more agile and collaborative leadership approaches. Those able to balance mission with innovation and build trust-driven, adaptable models will be best positioned to thrive.

The Kestria NGO and Not-for-Profit Practice Group is a key partner for organisations navigating the complexities of a rapidly changing global landscape. With in-depth industry expertise, this group helps NGOs and NFPs thrive by identifying leaders who drive innovation and create lasting, impactful change. Kestria specialises in finding social entrepreneurs and strategic leaders who deliver measurable results, making a tangible difference in the lives of individuals and communities worldwide.