Navigating Funding Challenges

Mar 14, 2025 | Blog

There are significant shifts underway in the NGO funding landscape of Bangladesh, that demand attention and adaptation. As the country is poised to graduate from a least-developed country (LDC) status in 2026, the once robust flow of foreign funding is undergoing a notable downturn, resulting in a nearly 30% decrease in commitments for NGO funding, with funding dropping to $720 million in fiscal year (FY) 23 from $1.03 billion in the previous FY. This, combined with the narrative of self-sufficiency gaining momentum, poses funding challenges for local, national, and international NGOs in Bangladesh. Moreover, there is a gradual withdrawal of western donors from Asia, shifting support to the Middle East and Sub-Saharan Africa, worsening funding challenges.

If funding declines persist and viable alternatives are not found, this could have broader repercussions, hindering progress toward achieving sustainable development goals (SDGs) and potentially harming the general population. Ensuring funding for sustained development operations implemented by NGOs is paramount for continued progress toward national and international development goals.

To tackle these challenges, it is essential to prioritize building relationships with donors to ensure long-term funding sustainability. It can be achieved by fostering a sense of community and belonging among donors, emphasizing personalized stewardship, and treating donors as valued partners. This approach may enhance donor retention and loyalty, cultivating enduring relationships that sustain ongoing support. Additionally, diversifying funding sources is crucial to reduce dependency on a few donors. Engaging with new bilateral and multilateral donor entities is also pivotal in this situation to secure funding through government channels or similar systems. Strengthening organizational capabilities aligned with donor priorities and partnering with local NGOs in Bangladesh will also offer pathways to increased funding. Taking these factors into account, Ipas Bangladesh is developing its fundraising strategy. We aim to diversify and sustain our funding stream by consistently engaging with both current and prospective donors, including bilateral, multilateral, and private foundations. This strategy is being crafted with this specific goal in focus.

-Written by Jafor Ahmed