FROM AID TO ACTION:LESSONS FROM INDIA’S NONPROFITS
When the United States Agency for International Development (USAID) slashed 83% of its programmes — cutting support to over 5,200 initiatives— the move highlighted a story of resilience in India.
Over the past years, Indian nonprofits have fundamentally reimagined their approach to foreign aid and emerged stronger. Rather than seeking new external lifelines, Indian civil society organisations challenged long-held assumptions and the scarcity mindset that often accompanies aid dependency. They turned inward, focusing on building resilience through local ownership, innovation, and strategic public-private- people partnerships.
The transformation is evident in the numbers: today, a vast majority of Indian nonprofits raise at least half of their funding from domestic sources. Corporate Social Responsibility (CSR) contributions have tripled since 2013, and innovative ‘capital stacking’ strategies mean that every ₹1 of philanthropic capital can unlock up to ₹30 in government partnership value. These are not mere temporary fixes but signs of deep, systemic change. Organisations are investing in long-term community trust, creating regenerative systems, and redefining their relationships with funders to focus on shared outcomes rather than charity
Through this report 'From Aid to Action', Usha Menon hopes that the lessons from India’s nonprofit sector offer timely, practical insights for funders, fundraisers, nonprofit leaders, and policymakers worldwide on building resilience in the face of shifting aid landscapes.
Resilience is a process, not a static endpoint to be reached. Hence, in addition to the lessons learnt, the report provides the call to action that will strengthen the process. Notably, it urges larger and more established social impact organisations to collaborate with community-based organisations (CBOs) that are responsible for critical last-mile delivery. By embracing collective responsibility and co-creating solutions, the sector can ensure that smaller, grassroots entities—who often deliver the most impactful work—are able to sustain their efforts and continue achieving meaningful results.
Click here to read the full report, the lessons learnt and the call to action.
