2025 in Review: Resilience, Realignment, and Renewed Purpose for 2026

As we step into 2026, we’re reflecting on a year defined by contention, disruption, recalibration, and extraordinary perseverance. Across the impact landscape 2025 challenged long-held assumptions about how progress is made, and who is included in shaping it. Yet it also revealed the strength, creativity, and determination of organisations and leaders committed to building a more equitable world. Their courage and clarity have been a source of deep inspiration for all of us at SRI. 

Below, we explore some of our thoughts on themes that shaped 2025 and will continue to influence the year ahead. 

US Withdrawal Sends Shockwaves 

The most consequential development of 2025 was of course the United States’ dissolution of the world’s largest foreign aid agency, USAID, and its decision to cease participation and funding in respect of 66 international organisations, including 31 UN entities, that its current administration believes “no longer serve American interests”.”[1] 

While it appears the US will continue its participation in UN humanitarian organisations such as the International Organization for Migration (IOM), World Food Programme and UNICEF, funding for humanitarian crises has been slashed from $8-10 billion dollars in recent years to only $2 billion.[2] 

The US was not alone, with other governments following suit in reducing their commitments, including large donors such as the United Kingdom, France & Germany. The OECD last estimated a 9 to 17% drop in official development assistance.[3] 

The impact on many organisations and programmes has been severe, and in some cases final. We were saddened to see many of our longtime friends and colleagues directly impacted by either the dissolution of USAID itself, a reduction of funding or in some cases the removal of funding. The decisions were felt deeply by many in our network not only because of the impact on their own lives but more pertinently to them, the lives and livelihoods of the communities which they support. 

How Will This Reshape the World Order 

In the wake of this challenge many international organisations are reevaluating their organisational strategy, redesigning their organisation or operating model, and considering mergers and alliances. SRI has already provided preliminary advice on several potential alliances for multilateral organisations and NGOs pursuing greater resilience and more efficiency to multiply and amplify their collective impact.  

The vacuum left by the US has yet to be filled, but this will not remain the case. Geopolitics, like nature, abhors a vacuum. A more fragmented world order does not necessarily need to be less effective. A combination of increased and more direct support from China and the Gulf combined with the work of the traditional institutions, increased involvement and faster decision making from the EU in establishing norms, and better private sector partnership could prove a less determinative but perhaps more nuanced, targeted and therefore successful ecosystem. 

Another impact of the approach taken by many governments to reduce funding and fund national rather than international causes is the creation of barriers to localisation. On one hand, many organisations have made tangible structural changes and transitioned decision-making authority to regional hubs, in response to several major donors introducing localisation benchmarks tied to funding allocations.[4] On the other, funding flows to local actors lag global commitments and this will be exacerbated by the reduced funding from the US to organisations that had previously led the way in localisation.  

Unlocking Impact: How New Funding Models Transform Private-Sector Collaboration 

As traditional donor budgets faced political pressure and economic constraints, many organisations sought to diversify their revenue streams. This shift accelerated the rise of blended finance, impact-driven investment, and cross-sector partnerships. 

Private-sector actors, from technology companies to renewable energy firms to financial institutions, played a more prominent role in initiatives. These collaborations brought new resources, innovation, and scale, but also required careful governance to ensure alignment with community needs and development principles.  

Recognising the interconnectedness of the global development and private sectors going forward, we have expanded our team to include experts in private sector for impact, expanding our expertise to work across a broader spectrum of organisations including the likes of sustainable infrastructure firms, investors, asset managers, carbon markets intermediaries, project developers, accelerators, and other private sector companies that work towards the sustainable development goals. These organisations are combining with NGOs and multilaterals to achieve impact. 

Philanthropy continued to evolve in 2025 as well. More foundations embraced trust-based approaches, multiyear commitments, and flexible funding. Women-led and Global South-led philanthropic networks expanded their influence, reshaping the landscape of global giving, and SRI Executive was proud to support them with a team which is predominantly female, women-led and with strong representation across the Global South. 

Global Health: Hard-Won Progress Amid Persistent Inequity 

The climate and humanitarian crises have combined with the abrupt decline in donor funding to jeopardise much of the improvements in health in recent decades, with conflict-driven displacement contributing to outbreaks [5], while climate-related shifts in disease patterns challenged surveillance and response systems.[6] 

Global health organisations will also need to adapt their funding models, and a new global health architecture is required. To avoid a regression in global health it is likely that greater domestic investment from governments will be required to augment international funding,[7] combined with private sector partnership. This challenge also presents a great opportunity, in that by creating a greater national stake holding, investment in health can be driven by the priorities of that country, creating the biggest impact for those that need it most, and better value for money by reducing administrative layers. 

Looking Ahead to 2026 

The challenges facing the impact community remain profound. Climate impacts are accelerating. Humanitarian needs are rising. Global health is at its most critical juncture in two decades. Funding is uncertain. And geopolitical tensions continue to complicate collective action. 

Yet we remain hopeful. The challenges are significant but present the opportunity for the sector to throw off some of its historic constraints and increase its impact. There are green shoots of hope over the last few months: new sources of funding; a greater emphasis on good governance; and local countries finding ways to support their own development.  

In terms of that emphasis on better governance, SRI’s Governance Effectiveness Benchmarking study conducted at the end of 2025 finds that many Boards across the sector have exceptional, talent, knowledge, ethics & integrity, yet there is often a gap between their intent and potential and their effectiveness in reality, owing to poor implementation and agility. 

SRI often sits at the intersection of the Board and the Executive and are well placed to help organisations explore their own governance maturity level, which will be more important than ever this year to respond to this era of unprecedented volatility. 

As we enter 2026, we are deeply grateful for the leaders, teams, and organisations who continue to push for progress, often under the most difficult circumstances. Their work is a reminder that meaningful change is possible, even in the face of immense challenges. 

We look forward to supporting their efforts and we remain ever grateful for the trust placed in us by them, which allows us to fulfil our mission of empowering lasting impact. 

Footnotes

1. The White House, “Fact Sheet: President Donald J. Trump Withdraws the United States from International Organizations That Are Contrary to the Interests of the United States,” 15 January 2026 
   
2. United Nations, “UN, US Sign $2 Billion Humanitarian Funding Agreement for 17 Crisis‑Hit Countries,” UN News, 29 December 2025 
3. Organisation for Economic Co‑operation and Development, Cuts in Official Development Assistance: Full Report (Paris: OECD, 26 June 2025) 
4. Publish What You Fund, Metrics Matter III: Counting Local (London: Publish What You Fund, 2025)  
5. World Health Organization, WHO’s Health Emergency Appeal 2025 (Geneva: WHO, 2025) 
6. World Health Organization, quoted in UN News, “Climate emergency is a health crisis ‘that is already killing us,’ says WHO,” 11 June 2025. 
7. Muhammad Ali Pate, Donald Kaberuka and Peter Piot, Transforming the Global Health Ecosystem: Lessons Learned and a Vision for the Future (Accra Reset, 7 January 2026)