As traditional funding streams shrink and global crises grow more complex, civil society organisations (CSOs) are being forced to confront a difficult truth: the models that sustained us for decades may no longer be fit for purpose. Whether you’re a small national CSO or a large international player, the question is the same: how do we stay relevant, resilient, and rooted in the communities we serve?
Two powerful answers have become more prominent in sector-wide discussions: localisation and alternative financing.
The Case for Localisation: More Than a Buzzword
Localisation has been on the civil society agenda for years, but progress has been slow. Despite widespread commitments, less than 2% of global humanitarian funding reaches local actors directly. This is not just a funding issue – it’s a power issue.
Local organisations are often the first to respond and the last to leave. They understand the context, speak the language, and are embedded in the communities they serve. Yet they remain underfunded, under-recognised, and overburdened by compliance demands designed for much larger institutions.
The good news? Change is happening.
Localisation has been on the civil society agenda for years, but progress has been slow. Despite widespread commitments, less than 2% of global humanitarian funding reaches local actors directly. This is not just a funding issue – it’s a power issue.
Local organisations are often the first to respond and the last to leave. They understand the context, speak the language, and are embedded in the communities they serve. Yet they remain underfunded, under-recognised, and overburdened by compliance demands designed for much larger institutions.
The good news? Change is happening.
Models like BRAC’s Pooled Fund for Localisation in Bangladesh are showing what’s possible when we flip the script. Instead of routing funds through international intermediaries, the fund channels resources directly to Bangladeshi CSOs, with many of them being small or emerging. It offers multi-year support, embeds capacity development, and uses a tiered access model to include high-potential but high-risk actors.
This isn’t just about equity. It’s about effectiveness, efficiency, and sustainability. Local actors often deliver better results at lower cost, and they’re more likely to stick around when the cameras leave.
But localisation also requires international CSOs (ICSOs) to rethink their role. Organisations like HelpAge International and Plan International are leading the way, shifting from implementers to enablers, conveners, and thought partners. They’re decentralising decision-making, reforming governance, and investing in long-term partnerships based on trust and mutual accountability.
The Financial Squeeze: Why We Need New Models
At the same time, the sector is facing a financial reckoning. Donor fatigue, geopolitical shifts, and economic uncertainty are putting pressure on traditional grant-based funding. For many CSOs, especially smaller ones, the future feels precarious.
That’s why alternative financing models are gaining traction.
From social enterprises and membership models to impact investing and corporate partnerships, organisations are exploring new ways to fund their missions. Some, like Impacc, are going even further, turning donations into equity investments in African start-ups that create jobs and build local economies. Others, like the ChanceMaker Foundation, are investing into grassroots leaders to drive systemic change through locally designed, context-specific solutions.
These models aren’t just about an alternative approach to money. They’re about agency, innovation, and sustainability. They challenge the idea that development must always be externally funded and externally driven.
The Path Ahead: From Adaptation to Transformation
What’s clear is that adaptation is no longer optional. The sector must evolve. Not just to survive, but to thrive in a world where communities demand more ownership, donors expect more measurable impact, and resources are increasingly scarce.
But adaptation doesn’t mean going it alone.
That’s why the International Civil Society Centre is convening a virtual workshop on 25 September to bring together national and international CSOs to explore these themes in depth. With the workshop, we are addressing in particular CSO staff with expertise in localisation and financing strategies. Whether you’re already experimenting with new models or just starting to explore, your insights and experiences are vital.
Together, we’ll look at what’s working, what’s possible, and what support is needed to make meaningful change.
This is just the beginning. Based on the workshop outcomes, we aim to establish a working group of experts from across the sector to co-create a roadmap or white paper. This will offer practical guidance for CSOs navigating the transition toward more localised, financially sustainable models of operation.
Stay tuned for more insights from our workshop! Together, we can shape a future where civil society is not only more sustainable, but also more just, inclusive, and locally led.