10 Tips for Funders Supporting Partners in Countries with Conflict and Closing Civil Spaces

Why It Matters

Without bold, risk‑aware funding, essential services in crisis zones risk collapse, undermining global human‑rights and development goals. Philanthropy’s willingness to assume measured risk can offset shrinking government aid and safeguard at‑risk communities.

Key Takeaways

• Over $60 B in aid cuts shrink nonprofit revenue streams
• Sanctions and data laws block cross‑border philanthropy flows
• Foundations view risk‑taking as essential, not just compliance
• Not funding poses greater humanitarian risk than legal penalties
• Strategic tips help donors protect partners while meeting regulations

Pulse Analysis

The funding ecosystem for NGOs operating in conflict zones has entered a perfect storm. Demand for humanitarian and rights‑based services has surged, yet overseas development assistance has slashed more than $60 billion, forcing nonprofits to stretch thin. Compounding the squeeze, an expanding web of sanctions, data‑surveillance mandates, and criminalization of LGBTQ+, reproductive and refugee advocacy is throttling the flow of foreign capital. Donors now confront a paradox: strict compliance safeguards their reputation, but excessive caution can starve the very communities they aim to help.

Risk asymmetry lies at the heart of the dilemma. While foundations worry about fines, penalties or reputational damage, their grantees on the ground often face imprisonment or death for simply receiving aid. Interviews with seven private foundations and three public charities underscore a growing consensus that the greater danger is inaction. As one executive noted, "The money is not the most important value; what’s important is the ability to take risk." This shift reframes philanthropy from a bureaucratic gatekeeper to a strategic ally capable of navigating legal gray zones to keep vital programs alive.

The article’s ten‑tip framework offers a pragmatic roadmap for risk‑aware donors. Recommendations include conducting granular legal due diligence, leveraging local partners for compliance, employing flexible funding mechanisms, and safeguarding beneficiary data through encryption. Foundations are urged to diversify funding streams, set clear risk tolerances, and maintain transparent communication with grantees about potential legal exposures. By balancing regulatory obligations with a willingness to assume calculated risk, funders can ensure that essential services reach those most vulnerable, even as civil spaces continue to close worldwide.