The perfect storm for NGOs and multilateral organisations: Why transformation can’t wait

A sector under pressure

NGOs and multilateral organisations are facing what experts are calling a “perfect storm.” Geopolitical fragmentation, economic headwinds, and public trust crises are converging to disrupt traditional operating models. The result: shrinking donor bases, rising competition, and unprecedented demands for accountability.

Once seen as steady drivers of progress on climate action, humanitarian aid, public health and the Sustainable Development Goals (SDGs), many institutions now risk losing legitimacy. Cases of financial mismanagement, governance failures, and allegations of misconduct have further eroded credibility. Meanwhile, global crises from Russia’s war in Ukraine to climate disasters are stretching already constrained resources.

Legitimacy: From incremental change to transformation

In our white paper we argue that small adjustments will no longer suffice. To stay relevant and impactful, NGOs and multilateral organisations must pursue transformation across three dimensions: People, processes, and policies.

Rebuilding trust and impact

This transformation is not just about surviving – It is about restoring credibility and influence. By embracing radical transparency, organisations can turn accountability into a competitive advantage. By focusing on measurable outcomes rather than lofty promises, they can rebuild donor confidence and public trust.

This transformation is not just about surviving – It is about restoring credibility and influence.

Benefit-focused project marketing

In today’s competitive donor landscape, programmes must be presented so that donors can quickly grasp their essence. Benefits, measurable impacts, and concrete improvements should be communicated much like private sector marketing campaigns target customers. A “one-size-fits-all” approach no longer works: grant applications must be tailored to donor needs.

The choice ahead

The conclusion is clear: incremental reform is no longer enough. Organisations that invest in new capabilities, adopt evidence-driven models, and rethink how they engage stakeholders will emerge stronger and more relevant. Those that do not risk irrelevance in an era where legitimacy and impact are under constant scrutiny.

The conclusion is clear: incremental reform is no longer enough.

The white paper’s message is urgent but hopeful: transformation is difficult, but the potential for renewed influence and effectiveness has never been greater.