Survey of 195 civil society organisations across 68 global majority countries by EU SEE, FSM and CIVICUS finds funding cuts are forcing grassroots organisations to downsize or cease their operations.
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- More than 7 out of 10 organisations say funding is lower than at any point over the past decade.
- US funding fell from the 6th most common funding source to last among the 11 sources surveyed.
- Almost two-thirds say their work has become less safe.
- Diversification of funding did not appear to protect organisations; the most diversely funded were the worst impacted.
- Over half report a significant deterioration in trust with donors.
The findings underline the exceptional moment that the sector is confronting. More than three-quarters of respondents say funding is lower than at any point in the last decade, while 34% report cuts so severe they now threaten their organisation’s survival. More than half have lost at least 25% of their total budgets since early 2025.
Strikingly, the organisations reporting the greatest disruption were medium-sized, locally embedded organisations with the most diverse funding sources. The long-held assumption that diversification would protect organisations appears not to have held.
The funding shock is not only affecting organisations but is cascading through the sector. Nearly six in ten organisations have eliminated positions or left vacancies unfilled, while similar numbers have reduced salaries, working hours or staff benefits. More than half have reduced, suspended or closed programmes and services, leading to direct impacts on vulnerable communities.
“We have had to sacrifice even our own salaries from other private sources to keep the NGO open and those who received a monthly salary are now working ad honorem.” – respondent from Honduras
The findings also raise concerns about a broader deterioration in the enabling environment for civil society. Almost half of respondents say their ability to engage in advocacy and public policy work has been reduced, around 40% report cutting back the scale of their work or becoming less vocal on key issues, and one-third say they have less autonomy to set their own priorities.
Almost two-thirds of respondents say civil society work has become less safe since early 2025. More than half report increased scrutiny, harassment or repression of civil society organisations, restrictive laws and regulations, or growing restrictions on fundamental freedoms. Nearly half have observed new restrictions on foreign-funded organisations or investigations targeting groups that receive international funding.
“The results show a perfect storm for civil society. Funding is disappearing at the very moment many organisations are facing greater political pressure. What’s being lost is not just programmes and jobs, but the independent voices to defend rights, give voice to vulnerable communities, and hold power to account.” – David Kode, Programme Director, EU SEE
The report calls on donors to provide more flexible and locally accessible funding, simplify compliance requirements, offer emergency bridge funding when grants are suspended, and increase direct support to national and grassroots organisations. It also urges governments to protect civic freedoms and remove barriers that restrict access to funding and public participation.
“In areas already marked by poverty, insecurity, threats, human rights violations, press repression and intimidation of civil society actors, the absence of international assistance aggravates the situation even further.” – respondent from the Democratic Republic of the Congo
