Giving Compass' Take:
- Thalia Beaty reports on how private donors contributed more than $125 million within eight months to maintain foreign aid programs after cuts.
- What are the root causes of these federal budget cuts to foreign aid? As a donor, what is your role in maintaining funding for foreign aid and development amidst uncertainty?
- Learn more about trends and topics related to best practices in giving.
- Search Guide to Good for purpose-driven nonprofits in your area.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
When the Trump administration froze foreign assistance overnight, urgent efforts began to figure out how to maintain critical aid programs that could be funded by private donors.
Multiple groups launched fundraisers in February and eventually, these emergency funds mobilized more than $125 million within eight months, a sum that while not nearly enough, was more than the organizers had ever imagined possible.
In those early days, even with needs piling up, wealthy donors and private foundations grappled with how to respond. Of the thousands of programs the U.S. funded abroad, which ones could be saved and which would have the biggest impact if they continued?
“We were fortunate enough to be in connection with and communication with some very strategic donors who understood quickly that the right answer for them was actually an answer for the field,” said Sasha Gallant, who led a team at the U.S. Agency for International Development that specialized in identifying programs that were both cost effective and impactful.
Working outside of business hours or after they’d been fired, members of Gallant’s team and employees of USAID’s chief economist’s office pulled together a list that eventually included 80 programs they recommended to private donors. In September, Project Resource Optimization, as their effort came to be called, announced all of the programs had been funded, with more than $110 million mobilized in charitable grants. Other emergency funds raised at least an additional $15 million.
Those funds are just the most visible that private donors mobilized in response to the unprecedented withdrawal of U.S. foreign aid, which totaled $64 billion in 2023, the last year with comprehensive figures available. It’s possible private foundations and individual donors gave much more, but those gifts won’t be reported for many months.
For the Trump administration, the closure of USAID was a cause for celebration. In July, Secretary of State Marco Rubio said the agency had little to show for itself since the end of the Cold War.
Read the full article about maintaining foreign aid programs by Thalia Beaty at AP News.