Navigating the Funding Freeze

Why Strategic Hiring Matters When Donor Funding Disappears

Internally-displaced persons - Somali children looking out from makeshift homes; Photo: Farah Abdi Warsameh/Associated Press News

The ongoing funding freeze has been caused primarily by policies introduced by U.S. President Donald Trump over the past few months. These massive cuts, including the closing down of the entire USAID institution, have placed immense pressure on organisations directly funded by the US government, and have created a general sense of unease in the nonprofit sector as more organisations scramble for alternative funding sources.

Organisations working on gender-based violence, LGBTQ+ rights, public health, climate change and poverty alleviation are reducing programmes, scaling back staff, or, in some cases, ceasing operations altogether. The impact is far-reaching, affecting the ability of many nonprofits to deliver (in some cases life-saving) services and also leaving their staff without jobs.

While these cuts are quite unprecedented, disruptions to funding have affected the nonprofit sector across Africa and South Africa in the past.

In South Africa, economic downturns and shifts in foreign donor priorities have challenged NGOs, forcing them to adapt and innovate. Despite these setbacks, NGOs have found ways to overcome financial crises through local funding sources, strategic partnerships, and community-driven initiatives.

Most nonprofit leaders are very aware that it is never wise to rely on one main donor and this moment calls on NGOs to diversify their funding sources, explore innovative financing mechanisms, and strengthen partnerships with regional and private-sector donors.

President Donald Trump holds a signed executive order; Photo: Kevin Lamarque/Reuters

As organisations tighten budgets, the need for efficiency and focus in hiring has never been greater. Every recruitment decision carries weight, and a single bad hire can be disastrous, leading to wasted resources, lost momentum, and increased vulnerability in an already fragile environment.

For many organisations, a recruitment process draws on the capacity and time of staff who are already stretched, and the wrong choice can easily be made, derailing progress and jeopardising the future of the organisation. A misaligned hire, especially at the executive level, can lead to inefficiency, reputational damage, high staff turnover, and even legal challenges such as CCMA disputes.

Now, more than ever, organisations should consider investing in a recruitment approach that ensures the hire of strong, reliable performers capable of navigating uncertainty and driving impact. Cutting corners in hiring should never be an option, particularly for high-impact, leadership positions. Screening CVs, conducting thorough background checks, and understanding the nuances of candidate selection requires expertise and an extensive nonprofit network.

Action Appointments empathises with our clients and remains committed to our mission to offer a professional recruitment service at all times. With over 30 years of experience in nonprofit recruitment we offer tailored, affordable solutions to help organisations secure the best candidates even during difficult times. By prioritising executive hires, organisations can strengthen their teams, improve efficiency, and position themselves for long-term success.

While this freeze has created some uncertainty, we are confident that the strength and resilience of the NGO sector will triumph. Our clients have shown time and again that they can adapt to shifting landscapes. After all, that is the nature of our rich and adaptable sector. This moment, while challenging, is no different.