The Telegraph: International aid sector looks to new business models as government funding dries up
While many charities and NGOs are down, others like MSF–with a proud history of independence–continue to thrive and save lives
This was originally published in The Telegraph. Below is an excerpt from the article.
International aid budgets are shrinking, forcing NGOs to rethink how they finance everything from health clinics to classrooms. The Telegraph reports that as government funds dry up, organizations are scrambling for alternatives that can keep lifesaving work afloat, especially in countries such as Bangladesh where cuts threaten hard-won gains for women and children.
BRAC’s answer is to lean even harder on the hybrid model it pioneered: social enterprises, microfinance and strategic investments now generate roughly 80 per cent of its Bangladesh budget, shielding programs from political tides. Through ventures like Aarong retail and a 10-million-strong microfinance portfolio, profits are recycled into schools, healthcare and its landmark Ultra-Poor Graduation schemes. “Asif Saleh puts it, ‘We need to be agnostic about what solves people’s problems,’” the article notes, urging peers to diversify revenue streams in the same way.”
Read the full article online to learn more about these critical issues and BRAC’s response.