Global Development

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Global development encompasses a wide array of efforts to reduce poverty and improve health, education, and economic opportunity around the world. Government funding (usually referred to as official development aid or ODA) is the main source of funding for development, but private philanthropy has a long history in this field and such giving is both growing and changing. In the face of mounting critiques of “top-down” global development philanthropy as wasteful and ineffective, or as representing a form of colonialism, funders are increasingly supporting local leadership and shifting to participatory grantmaking models, in which decisions about where resources flow and how they are used can be made by people and communities closer to the greatest challenges. 

Many government and private funders link their development efforts to the U.N.’s Sustainable Development Goals. The goals were adopted in 2015 with an aim to achieve them by 2030. However, the COVID pandemic and other crises have slowed progress toward the goals, underscoring the need for both governments and philanthropy to step up their investments in global development.  

Strategies for Impact

Nonprofits and NGOs are engaged in a range of efforts relating to global development. Below, we discuss several areas where donors might focus their funding and spotlight several organizations in each that represent the kind of groups that donors might consider supporting.    

  • Donate to organizations with a track record. Global development is a complex field, and funders want to avoid reinventing the wheel. One place to start is by giving to established organizations that have expertise and experience in an issue area you care about. To give just a few examples, UNICEF and Save the Children are among the major organizations focusing on children; CARE International, Evidence Action and Oxfam all work to end poverty; and the UN Foundation and ONE Campaign are both working toward the Sustainable Development Goals. Other organizations with a proven track record of cost-effective interventions include One Acre Fund, Village Enterprise and GiveDirectly.

  • Back grassroots efforts. Locally led grassroots efforts remain under-resourced – yet their very rootedness in local communities, needs and land means they might have the best ideas for what will actually work to improve lives. Of course, it is hard for a donor to know which grassroots groups to fund in places where they don’t already have deep knowledge or relationships. That’s where regrantors and other intermediaries come in. There are a number of intermediaries that have relationships with trusted grassroots groups around the world and can regrant your funds toward regions where they can most effectively support grassroots efforts, such as Global Greengrants, Grassroots International, CLIMA Fund, and the Global Fund for Women.     

  • Support women and girls as economic drivers. Advancing gender equity and creating new opportunities for girls and women is a key to development, and a growing number of nonprofits are working in this area. The funding intermediary Co-Impact offers donors a way to reach some of these groups through its Gender Fund, which regrants funds to predominantly women-led, locally rooted organizations in Africa, Asia and Latin America. Educate Girls is a highly respected NGO promoting girls education in India. A central topic in gender equity is ending child marriage. Donors can give to this important cause through the Girls First Fund, a funding intermediary.

  • Prioritize climate justice. The people and land already most impacted by climate change are largely the least responsible for causing it, and climate issues are deeply intertwined with every aspect of sustainable development. Climate justice considers climate issues through a human rights and social justice lens, and there are many opportunities for donors to support this critical work through intermediaries and funder collaboratives such as Global Greengrants, CLIMA Fund and the Climate Justice Resilience Fund. Climate Critical Earth supports climate justice leaders and movements from communities and cultures that have been marginalized and excluded from mainstream climate organizations. 

  • Invest in deeper understanding. Some major donors support NGOs that, rather than providing direct services, conduct research, publish policy analyses and advocate for policies, increased government, and bilateral and multilateral support for international development. One example, the Center for Global Development, a 20-year-old nonpartisan nonprofit, works to reduce global poverty and improve lives through innovative economic research that drives better policy and practice by the world's top decision-makers. Another such organization is the Global Development Incubator. One GDI offshoot is Village Enterprise, mentioned above, which works to end extreme poverty in rural Africa through entrepreneurship and innovation. Its poverty graduation program, using digital technology and a group-based approach, equips Africans living in extreme poverty with cash transfers, training and mentoring to create income-generating, sustainable businesses and savings groups. Another organization to consider supporting is Innovations for Poverty Action, which identifies and promotes evidence-based interventions to reduce poverty.

Insights and Advice 

In considering which impact strategies to support, donors should take into account their personal interests and outlook to find the best fit. Keep an eye out for emerging opportunities to give with maximum impact. Here, we offer a few insights and suggestions:

  • Don’t go it alone. U.S.-based affiliates and intermediaries can make it much easier for U.S. donors to give globally. In the development field, a donor can choose from large international organizations like the UN Foundation or Oxfam, or intermediaries that can move your funds to the grassroots, such as Global Greengrants or Mama Cash. There are also intermediaries and philanthropy-serving organizations that help funders learn more about giving for global development, such as the Global Philanthropy Forum, Network of Engaged International Donors, Network of Foundations Working for Development, and Africa Grantmakers’ Affinity Group. Some three-dozen grantmakers come together in the Agroecology Fund, a multidonor fund that supports just and sustainable food systems. AGRA (which until recently stood for Alliance for a Green Revolution in Africa) receives some of the highest levels of funding in the global hunger space. 

  • Understand the role of microfinance, banking and direct cash transfers. Microcredit, the practice of making small loans to poor people to fund small businesses, is one type of program in the banking and finance realm. Another intervention in the finance space involves cash transfers, in which money is given to individuals in need to spend at their discretion. Early claims about microcredit’s benefits failed by most measures to live up to the promise of lifting people out of poverty. But there is little doubt that microcredit can improve the lives of poor people by stabilizing their financial lives. Another intervention in the finances space involves cash transfers, in which money is given to individuals in need to spend at their discretion. The effectiveness of cash transfers has a strong evidence base. The rapid growth of mobile payments technology in emerging markets has opened the door to delivering cash transfers securely and efficiently on an unprecedented scale. The nonprofit GiveDirectly, mentioned above, is a highly respected leader in this area that allows you to send money directly to individuals living in poverty.  

  • Give with equity in mind. Philanthropy from the Global North has often operated in ways that perpetuate inequality. Funders seeking to change this are taking concrete actions to give with equity in mind. The Racial Equity Index aims to hold the global development sector accountable in dismantling systemic racism. There are a number of funds and funder collaboratives focused on gender equity and gender justice, including the Global Fund for Women, Mama Cash, Purposeful, and Co-Impact’s Gender Fund. EMPower focuses on young people’s economic wellbeing, health and education around the world. Funders for LGBTQ Issues tracks philanthropic giving for LGBTQ issues and communities domestically and globally.

For Donors Getting Started

Donors who are new to this space should take the time to learn about the landscape. A good place to start is by reading IP’s State of American Philanthropy Brief on Giving for Global Development. You might also look at related State of American Philanthropy reports, such as Giving for Global Health, Giving for Climate Change and Clean Energy, and Giving for Global Humanitarian Assistance. In addition, peruse recent articles that IP has published about what’s happening in this area of philanthropy. 

Some philanthropic organizations, such as the Global Alliance for the Future of Food, publish reports and articles to help donors understand the issues and the giving landscape. Groups such as the Global Philanthropy Forum, Network of Engaged International Donors, Network of Foundations Working for Development and Africa Grantmakers’ Affinity Group offer peer-learning opportunities for funders. Devex is a leading news and resource site covering global development issues. 

But the best way to get started giving for global development is to make some initial gifts, learn from the groups you’re supporting, and connect early with a funding intermediary that can help you learn more about this giving area and increase your giving in a thoughtful way.

Have suggestions for improving this brief? Please email us at editor@insidephilanthropy.com.