What strategies are proving more effective for NGOs to diversify their funding sources, given the current economic and funding climate?
Question submitted by: Stacey Wayotti, Dyslexia Organisation, Kenya
Based on my observations and interactions with NGOs across Africa, diversification is still very much a work in progress for most organisations, but there are clear signals of where momentum is building and where the future is heading. Here is what I am seeing.
Gaining real traction: local philanthropy.
Of all the strategies being pursued, this is the one showing the most genuine momentum. Local fundraising campaigns, community giving, local philanthropists, and diaspora engagement are beginning to take root across Africa. We are not yet where we need to be, but I think we are in the right direction. Local funding also brings something institutional grants rarely offer: ownership, flexibility, and long-term resilience.
Promising but still maturing: private sector partnerships.
Encouraging examples are emerging across the continent, but consistent, sustained corporate funding remains a challenge for most NGOs. It requires a fundamental shift in how organisations engage, understanding what a partnership delivers for a company, not just a community. The direction is right. The work of getting there is still ahead of us.
A long-term bet worth exploring: social enterprise.
From my interactions with NGOs, this is generating significant conversation but limited proven results at scale so far. It requires investment, business-minded staff, and a genuine market opportunity. That said, the rapid rise of impact investing and blended finance across Africa is making this conversation more urgent. Some international NGOs have already created two distinct vehicles, an NGO arm for grants and mission delivery, and a separate social enterprise arm to attract impact investment. This dual model is worth serious study by African NGOs.
One to watch: Donor Advised Funds.
DAFs hold significant philanthropic capital globally, and some is increasingly flowing toward Africa. Local DAF infrastructure is still emerging. This is a space we are monitoring closely and will share more on as it develops.
Across all streams, the foundation remains the same: strong governance, financial accountability, a compelling impact story, and consistent visibility. Diversification is not about chasing every opportunity. It is about making intentional, strategic moves toward a more resilient funding future.
(This answer was provided by Lucy Njue, a Kenyan fundraising and sustainability strategist, and Founder and Executive Director of Realtime Insights)
