In January, the United States imposed a 90-day freeze on foreign development assistance pending policy reviews. As one of the world’s largest development funders, this decision has disrupted programs and partnerships worldwide.

A recent internal survey revealed that many of our members are directly affected, with some forced to halt program activities—impacting both the communities they serve and their relationships with partners. In this Member Perspective, Zachuas Ogonji, founder of Inua Village to Global, shares firsthand insights from the frontlines in Western Kenya.

USAID funding freeze impact

How were you directly impacted?

We were in the process of concluding an engagement framework with USAID to support families affected by HIV/AIDS. The program aimed to bring beneficiaries into our textile apprenticeship project, where they could learn skills. We also planned to collaborate in training them on kitchen gardens and other livelihoods to sustain themselves after the project ended. This chance to directly engage with USAID would have been a significant learning and partnership opportunity.

Unfortunately, the project got canceled immediately after the order was issued. 

The cancellation affected many areas, including people already engaged, employed staff, shortlisted suppliers, and overall operations. 

How would you compare the impact of this funding shift on grassroot organizations  vs larger non-governmental-organizations (NGOs)?

Right now, it is the community-based organisations (CBOs) that are crying on behalf of the bigger international players who get millions in funding. We are the ones that get the trickle down of funding through these USAID projects. 

The big organizations have enough safety nets against such things in terms of contractual agreements for their workers and obligations that each party has. But for smaller organizations, we usually don’t have the opportunity of negotiating power. Sometimes you just get what you are given and have to accept it.

What reputational risks do sudden funding changes pose to CBOs?

CBOs carry the bigger burden of being the ones that interface directly with the primary beneficiaries, and the people who depend on these services at the frontlines. So, there are a lot of risks for small community-based organizations that are community-facing. 

If you receive funding, you might put up a small office, paint the place, and make it look nice, and people will start to come in. Then, suddenly, this funding is cut, and you haven’t found other alternatives. Quickly, you will face a backlash from your beneficiaries. They will think that you are lying, and that you wanted to take advantage of them. 

In situations like these, implementing mitigation measures—and communicating them effectively to your beneficiaries—is crucial. Prioritizing trust-building with your community is essential, as funding shifts often impact programs that affect their daily lives.

How should local leaders approach sudden foreign aid shifts?

Policies change with each administration, and what the U.S. government wants should not dictate how we address problems in our own villages, a million miles away. As leaders, we need to see the bigger picture—global challenges and shifts are beyond our control, and we must continue solving problems locally, despite these external shifts. 

The world has its own challenges and its own issues, and sometimes those trends align with what we are doing, so we get a lot of benefit from it. Sometimes the goals that advance our communities are in complete conflict with what the world wants. 

Just like in business, even with the best planning and insurance, unforeseen events can still disrupt operations—but that doesn’t mean you stop. You only stop if funding was the sole purpose, which is short-lived thinking.

How can CBOs maintain program continuity in moments of uncertainty?

Where CBOs do best is finding people who are genuinely passionate about their work, programs and organizations. In times of crises, they will be willing to continue to volunteer, cut down their salaries or allowances. 

I saw this in our schools, during the in COVID-19 crisis. Even after our [education program] supporters left, the teachers continued with very limited payment, because they understood the vision and they understood what we were working on. They would go on bikes to the homestead, to deliver assignments and food packages.

So, activate local networks and partner relationships. Be honest, clear, and involve them in finding the solutions. Prioritize building trust with your community.  This is how you exercise community resilience.

Still on COVID-19 lessons, what can we learn about community engagement and resilience?

The lessons that we can draw from COVID and what is happening right now is, we need to build local identities. If you are recognized locally and the people understand you to be a CBO that is growing from the grassroots upward, and they can relate to what you are talking about and standing for, then they will jump in and work together. 

Therefore, building a brand that is truly identified and accepted in your community is very key. If you do get funding, then spend some of that on naturalising your organisation. So, if the money ends, the community comes together to see how they can help you to survive. Rather than seeing you as an [external] organization, they see you as part and parcel of their existence as a community. The relationships you build in your community, over time, will determine the alternative resources you can raise.

What new outlooks should CBO leaders adopt to successfully navigate change?

We might look at it as a bad idea right now, because we are losing billions that have been invested in these projects, but every challenge brings with it opportunities. Nature does not like vacuum. If the US leaves, there will be other people who will step in. There will be other ways of mobilizing resources. 

So change your perspective, and ask the right questions to see hidden opportunities. What are you replacing this funding with, and what value does it create? Does this shift create other opportunities to develop fresh solutions within your ecosystem?

It is a time to open up your antennae, be more connected and plug into the new environment. If your ideas are good and the projects you are undertaking create real benefits for beneficiaries—and if people are happy with the services you’re providing—then it doesn’t matter how small your organization is. People will come to you, and you’ll attract the necessary resources.

What would you like funders and partners to know?

The aid system has had its challenges, including creating dependency, limiting innovation, and failing to foster forward-looking, sustainable solutions. New [approaches that] provide accessible funding for capable organizations with strong ideas, could level the playing field and provide opportunities for sustainable development driven by the quality of their work.

If communities are empowered to engage in areas like carbon trade, leverage education policies, or access low-cost funding, it could stimulate more trade and innovation at the grassroots level. Teaching CBOs how to do business would reduce dependency on aid, and allow them to cascade benefits to their beneficiaries. 

Zachuas’ parting shot

I think of CBOs like churches. Our churches in Kenya were brought by missionaries, but the missionaries left decades ago, yet the churches are still there. That’s because they became part and parcel of the community. People worship there, they give their land to build more and they volunteer to support them. 

If we allow community members to engage in our organization, and be part of the transformation that is being created, then they feel a sense of ownership, which in turn cushions these community projects from the fluctuations in international funding.

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