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As the Associated Press reported early in 2024, there are over 50 influential elections this year, impacting nearly half of the global population. The outcome of these elections have the potential to bring about significant changes worldwide, particularly around human rights, economic stability, climate change, and international development.
With campaign funds raised in the United States alone exceeding $500M USD, many nonprofit leaders are thinking about how redirection of funds could impact their fundraising. Globally, nonprofits and NGOs should be aware of the potential impacts of recent and upcoming elections and adapt their strategies accordingly, equipping themselves to navigate through periods of political change and uncertainty.
Funding Uncertainty in the United States
The United States is experiencing unprecedented surprises this election season, including Joe Biden’s decision not to seek re-election and the potential for the first African-American woman and Asian American president. As we enter a charged atmosphere of campaign ads and divisive rhetoric, the political landscape promises to be continuously tumultuous.
The potential election of an extreme right-wing candidate could have far-reaching implications, likely altering the landscape for philanthropic initiatives focused upon human rights, racial and social justice, and democratic governance. This is particularly true in Latin America, where many countries already have strengthened right-wing parties. This political shift will influence U.S. foreign policy and international aid, affecting funding flows to the region.
Some funders are delaying decisions about their contributions until after the election, preferring to assess the political landscape and potential policy changes before committing to their philanthropic priorities. This cautious approach reflects their desire to align their giving strategies with anticipated post-election developments. For example, with women’s healthcare and reproductive rights on the ballot this November, many donor organizations that grant internationally could potentially shift their funding domestically. This would certainly be a vital pivot, but one that would lead to significant repercussions for global NGOs that rely upon American funders. We talk more about this dilemma in a blog post after the 2016 election, when funding poured into local and national organizations.
Donor fatigue is also a possibility, as many donors are likely being inundated with texts, emails and social media ads from not only political organizations, but domestic organizations they have supported in response to the election. In addition to elections, global challenges including conflict, war and inflation could all compound this fatigue and potentially make many philanthropists want to evaluate their giving.
Political Shifts Across the Globe
The uncertainty of the changing political landscape is being felt worldwide. Netherlands-based Black Fox Global expert says that the recent election results in the European Union have shifted to more right-wing policies. She adds: “European foundations have responded by restricting funding towards initiatives and projects they consider progressive, such as social, economic, racial justice, gender equality, human rights, and some are also taking a more conservative approach. It’s been concerning to see this shift, but we know there are progressive donors who aim to combat this, too.”
However, in the United Kingdom, there’s been a shift towards a center-left government. UK-based Black Fox Global expert weighs in: “30% of all children in the UK live in poverty. Only time will tell the impact a shift to the left will have on charities and nonprofits, but there’s hope that as the new government begins to tackle child poverty, charities can focus on addressing long-term, systemic change.” The new Labour government will also be tasked with rebuilding the UK’s approach to international development and aid spending, which could mean millions more in available funding for international NGOs.
National elections were held in India this past spring. India-based Black Fox Global expert says: “Over the last few years, the civil society space in India has shrunk, and the The Foreign Contribution Regulation Act (FCRA) was used as a weapon to silence entities whose work was not to the government’s liking. The recent election results, which have brought back some balance to India’s parliament and forced the ruling party to form the government through a coalition, is a win for civil society and independent, nonprofit media that refused to buckle down to the state’s demands and continued to speak truth to power. It shows how indispensable people-led movements are if we still want a functioning democracy. In terms of how things will pan out in the future for India’s NGOs, it’s too soon to say, but one hopes that the air of invincibility which once clouded the ruling party has diminished, and that the coalition means that there will be fewer attempts to demonize and vilify the nonprofit sector.” Many charities aren’t currently able to function in India, and for the time being, both domestic and global nonprofits operating in India will continue to be affected.
The current political landscape in Latin America is very diverse and complex, substantially influencing philanthropy and fundraising efforts across the region. Brazil-based Black Fox Global expert shares: “The election of Claudia Sheinbaum as Mexico’s first female president marks a historic moment that could catalyze philanthropic initiatives. Following six years of Andrés Manuel López Obrador’s government, her administration is expected to focus on social equality, environmental stability, and combating cartel violence, which will likely attract funding and support for related causes. In contrast, Venezuela’s escalating political tensions could lead to regional destabilization, prompting increased philanthropic efforts toward refugees, democratic governance, and crisis management. Brazil’s municipal elections will also play a critical role in shaping local philanthropic priorities, acting as a thermometer for the 2026 presidential run. All eyes will be on the UN Climate Change Conference, COP30, in Brazil. This will be a major push for environmental investments in the region, particularly in the Amazon, and efforts to end hunger.”
In Africa, we will see elections this autumn in Algeria, Mozambique, Tunisia, Botswana, Somaliland, Mauritius, Namibia, Ghana, South Sudan, Guinea Bissau and Guinea. Similar to many other regions around the world, this year will be an indicator of where democracy is headed on the continent of Africa. Kenya-based Black Fox Global expert shares: “In terms of direct impact on funding, in the lead up to elections we typically see greater investments in civil society organizations operating in the democracy space, with a focus on citizen engagement. Beyond this, and in terms of upcoming elections influencing funding flows into Africa, it will largely be determined by who is elected into power. For the philanthropic sector, the trends are less easy to define as they are so diverse in terms of mandate and size. We can assume that funders will be more likely to channel funds into countries with limited risk factors in terms of economic stability, prevalence of fraud, mismanagement of their resources, and corruption.”
Focusing on the Future
As Black Fox Global’s CEO Natalie Rekstad says, “Politics is just one lever for change. Philanthropy is another.”
The Black Fox Global team resolutely believes a better world is possible through the transformative work of our clients, nonprofits, NGOs, and other social impact organizations across the world. Here are three ways nonprofits can safeguard themselves from donor instability during uncertain periods:
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