The global development and philanthropic landscape is in the middle of a profound shift. Shrinking aid budgets, geopolitical friction, and rising demands for authentic localization are forcing funders and civil society organizations (CSOs) to reconsider how resources are deployed.
In a recent Devex conversation (for pro subscribers), leaders and former program directors from the MacArthur Foundation—including Erin Sines and Amina Salihu—reflected on the realities of running, evolving, and closing out decade-long, time-limited grant portfolios.
How can funders step away from top-down paternalism, navigate planned exits responsibly, and leave partner organizations stronger than when the funding started? Here are six essential takeaways for funders and changemakers navigating this new world of aid.
1. Philanthropy Can’t "Save the World"—It Unlocks the Resources to Make It Safer
As Amina Salihu (Deputy Director, MacArthur Foundation) highlighted, philanthropy often falls into the trap of saviorism. In reality, outside institutions don’t solve endemic societal challenges alone. The role of funders is to serve as catalytic enablers: unlocking flexible, risk-tolerant capital so that the people living closest to the issues have the agency, protection, and tools to lead the change.
2. Move from Transactional "Grantees" to "Grantee Partners"
Language matters, but behavioral change matters more. Traditional grantmaking often treats nonprofits as mere implementers contracted to hit rigid KPIs. Treating local organizations as true strategic partners means:
Shared governance in setting programmatic priorities.
Listening rather than dictating solutions.
Providing unrestricted general operating support rather than project-siloed, restrictive funding.
3. If a Grant Program is Time-Limited, Over-Communicate the End Date
One of the most damaging mistakes a donor can make is an abrupt or poorly signaled exit. Erin Sines, former Program Director at MacArthur, pointed out that the foundation made it clear to partners from Day One that their big-bet investment had a finite timeline. Being transparent about the finish line prevents dependency, encourages early financial planning, and forces both funders and partners to maximize every year they have together.
4. Invest in Institutional Infrastructure, Not Just Short-Term Deliverables
When programs end, project activities may conclude, but the organizations must survive. A key lesson from long-term portfolios is prioritizing resilience over burn rates:
Supporting organizational core costs and indirect expenses.
Strengthening local compliance, fiscal systems, and fundraising diversification.
Backing collective coalitions and networks rather than isolated, competing actors.
5. Design the Exit Strategy Around Local Ownership
Sustainability is not measured by whether a project continues identically after donor withdrawal; it is measured by whether local systems and civic actors have gained enough sovereign momentum to carry the agenda forward. Planning an exit requires funders to invest heavily in local resource mobilization, build bridges to other donors, and advocate for policy frameworks that institutionalize gains.
6. Balance Trust-Based Giving with Mutual Accountability
There is a growing myth in development that "trust-based funding" means abandoning accountability. In practice, true partnership deepens accountability: it shifts from punitive, upward reporting (paper receipts and rigid audit hurdles) toward mutual accountability focused on learning, real-time feedback, and shared strategic adaptation in the face of political volatility.
The Road Ahead
As the aid architecture evolves, the MacArthur Foundation’s experience offers a roadmap for moving beyond standard charity. Meeting the moment requires donors willing to share risk, communicate with radical transparency, and center the leadership of frontline communities.
A short excerpt discussing these insights can be watched in this clip on MacArthur Foundation's lessons on aid funding.
This piece is part of our two-part series on the shifting realities of global philanthropy, exploring what it takes to navigate funder exits responsibly and leave local ecosystems resilient. See our second post exploring the practical mechanics of responsible departures from the perspective of both funders and grantee partners.