What the rest of 2025 holds for Nonprofits and NGOs
I am a little late as it's half way through February, but if I had posted this in early January it would have been a very different post. So a little late, but here are my thoughts on what the rest of 2025 holds for nonprofits and NGOs.
Looking back at my 2024 version of this post I mention an “uncertain political climate in the United States”. Many might have predicted what was to come with another Trump administration, few would have predicted the speed and ferocity of the changes they are making. From withdrawing from the WHO and the Paris Agreement, to practically shutting down USAID, uncertainty for many NGOs and nonprofits continues to evolve at an unprecedented rate. 2025 is shaping up to be a year of huge change.
Adapting to political instability and funding challenges
This dramatic reduction in foreign aid under Trump has obviously created significant upheaval throughout the international development sector, including those collaborators and partners in the private sector. Organisations and businesses are being forced to totally rethink their funding models or revenue streams.
Organisations who relied heavily on a single funding source, be it from the WHO or USAID, are having to find alternative funding streams and are realising the hard way that unless you embrace diversification in your funding you are exposing yourself to risk.
There are alternatives out there, not with the same clout as USAID, but still with significant allocations (here in the UK the FCDO annually distributes approximately £15.3 billion, Global Affairs Canada nearly £9 billion, and Germany (BMZ) and France (AFD) combined nearly £50 billion). Interestingly, there seems to be a trend towards more public-private partnerships, beyond the big infrastructure projects which have always followed that model. Looking to work in collaboration with the private sector is a sensible strategy and one I mentioned in my 2024 post.
Adapt! Adapt! Adapt!
Change defines our current reality across every sector. While many organisations – from nonprofits to corporates, and from government agencies to educational institutions – talk about being 'adaptive' or 'agile', there's often a significant gap between rhetoric and reality.
In our work with various organisations over the years (and our work on our own internal processes and methodologies), we’ve observed that adaptability goes far deeper than superficial process changes or the adoption of new technologies. Real organisational adaptability is about fundamentally rethinking how we work and communicate. This disconnect between rhetoric and reality becomes particularly evident in times of crisis or change, and it's not a stretch to see that those times are right now.
The strategist in me will always want to see the opportunity and truly agile organisations don't just survive challenging moments, they use them as opportunities for growth and innovation. They've developed operational models that can genuinely pivot when circumstances demand it, their digital infrastructure is purposefully designed to scale and evolve, and they've cultivated a culture that embraces change. And they are willing to take a risk.
The challenge for 2025 isn't just about implementing a new system or process or thinking you can find the tech equivalent of a magic bullet. It's about fostering a deeper organisational capacity for change while maintaining some form of stability. This balancing act between flexibility and consistency will likely be one of the defining challenges for organisations across all sectors in the years ahead.
Feet on the ground
The traditional model of international NGOs directing programs from afar is not a great look, as many are now finding out. We're seeing a significant shift toward locally-led development initiatives and more emphasis on local leadership and decision-making.
Many organisations do work that directly affects the livelihood of people but they feel they are too far removed to be able to accurately and confidently speak about their impact, or they do not want to take credit, or disenfranchise their partners ‘on the ground’. However right this might be, this is an approach that might have to change. Every NGO or nonprofit needs to be able to communicate their direct effectiveness in positive impacts, no matter how far they are removed. Which brings me onto …
Measuring what matters
As mentioned above, it's becoming more and more important for organisations to prove their direct effectiveness and justify the investments they make.
In my work with organisations across different sectors, I've noticed a consistent theme around impact measurement – it's both critically important and persistently challenging. While funders increasingly demand clear evidence of effectiveness, the reality is that measuring genuine impact isn't straightforward. Organisations often grapple with fundamental questions about what constitutes meaningful impact in their context, how to gather relevant data with limited resources, and how to translate complex realities into clear narratives.
This challenge forces us to think more deeply about what really matters in effectiveness for NGOs and nonprofits. Through working with various clients, we have learnt that successful impact measurement isn't about collecting every possible data point or focusing solely on positive outcomes. It's about building sustainable frameworks that capture both quantitative and qualitative change. The most effective organisations we have worked with treat impact measurement as an ongoing piece of work, integrating it into their programs and initiatives from the start and using it as a tool for continuous learning and improvement. This approach not only strengthens their case for funding but also helps them stay true to their mission or mandate and helps them adapt to changing circumstances, hugely pertinent considering the current political climate. For a deeper dive into impact measurement you can read my post on challenges in measuring impact.
The maturing use of AI
You can't have a blog post in 2025 that does not mention AI, so here you are. In my previous post I mentioned the opportunities AI could offer. If 2024 was about tentative experimentation, 2025 is showing us what mature AI implementation can look like.
I see quite contradictory statistics on the use of AI across all sectors, there seems to be a lot more talk than action. I think many organisations and corporations are just scratching the surface but we are seeing some significant uptake with the clients we work with. Organisations are moving beyond basic automation to develop more sophisticated applications, and we have recently worked on several AI related projects for our clients. The most common use is AI translation tools and we have completed several integrations with AI powered translation services, most notably Deepl. We have also been working with AI solutions from providers who integrate with the TYPO3 CMS, tasks include metadata generation or custom content layouts based on defined information repositories.
As the first flush of AI novelty is fading, I am hoping this will be replaced with serious, practical and useful applications of this technology. Solutions that can help improve lives, rather than adding to the bottomless pit of meaningless self replicating ‘content’. I mention some aspirational examples of ways AI could help the planet in this post on AI and sustainability.
Looking ahead
While the challenges facing the sector are significant, they're also driving innovation and positive change. Organisations that can embrace uncertainty while staying true to their core mission will be best positioned to thrive. The key will be maintaining enough stability to deliver consistent impact while building the flexibility to adapt to whatever changes lie ahead.
The next few years will likely bring more surprises and challenges but they also offer opportunities for organisations willing to evolve and innovate. The successful nonprofit of 2025 isn't necessarily the largest or best-funded, it's the one that can best adapt, learn, and continue delivering and proving their impact.
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Owen Priestley
Strategy Director
