How Tanzanian NGOs can adapt and thrive amid funding shifts

By Jacqueline Mndeme

As the saying goes, “when the going gets tough, the tough get going” and for Tanzanian NGOs facing funding cuts, this resilience is more crucial than ever as they navigate the challenges of staying afloat and continuing their vital work.

For decades a healthcare clinic in the rural valleys of Uluguru Mountains, Eastern Tanzania has always relied on NGOs support to deliver maternal care. But with recent funding cuts, the clinic now struggles to provide basic supplies and services to the local communities. This is not an isolated case, across Tanzania many NGOs face similar crises forcing them to suspend basic supplies, services, programs and cut jobs. The overdependence on foreign donors has made these organisations vulnerable to shifts in donors’ priorities.

Without doubt, Tanzanian NGOs have played a vital role in promotion of education, healthcare, environmental conservation, and economic empowerment initiatives. These organisations complement government efforts often reaching communities that public services struggle to support. However, the recent suspension of USAID funding has created significant challenges particularly for NGOs working in agriculture, healthcare, education and environmental conservation. The funding cuts have led to program suspensions, staff reductions and delays in key projects underscoring the urgent need for sustainable financial strategies.

Many local NGOs, heavily dependent on foreign donors, now face an uncertain future. Shifting donor priorities, stringent regulatory requirements, and fierce competition for limited funds have further strained their ability to operate. In my rural healthcare centre, critical programs are on hold due to a lack of resources while in education, digital learning initiatives aimed at bridging the knowledge gap for marginalised children are struggling to stay afloat.

Looking at the environmental conservation projects, crucial for Tanzania’s biodiversity, have slowed as NGOs scramble for alternative funding sources. Without shock absorbers from local funding, there is a serious threat to their long-term sustainability of NGOs. We have to admit that, international aids have fuelled social progress for years, but also created a fragile financial ecosystem. Without diversified revenue streams, even well-established NGOs remain at risk when funding dries up.

Yet, despite these challenges, NGOs continue to drive critical initiatives like climate adaptation, digital education, and sustainable marine resource management, all with a strong emphasis on inclusivity for women, youth, and marginalised communities. These organisations remain steadfast in their mission to tackle some of the most urgent issues, such as environmental conservation and social equity, which disproportionately affect vulnerable groups. However, the ongoing uncertainties in funding threaten their ability to maintain momentum and scale their impact. To ensure their survival and continued effectiveness, NGOs must confront these challenges head-on and reconsider their approach to financial sustainability.

To remain resilient, Tanzanian NGOs must diversify their funding sources beyond a single donor dependency and explore alternative funding models. This includes seeking grants, forming corporate partnerships, engaging philanthropic foundations and developing social enterprises. Strengthening local fundraising efforts, collaborating with the private sector and forging partnerships with international NGOs and government institutions will enhance financial stability and service delivery. Additionally, NGOs should prioritise long-term financial strategies including strong governance, transparent financial management and the creation of reserve funds to navigate funding gaps.

The Covid-19 pandemic highlighted the importance of technology in maintaining service delivery, with virtual platforms for education and healthcare expanding reach and reducing costs. NGOs saw firsthand how digital tools could bridge gaps, allowing them to continue their critical work even in times of crisis.

From remote learning initiatives to telemedicine services, technology became a lifeline ensuring that essential services remained accessible to those who needed them most. NGOs must leverage technology for digital fundraising as well, embracing online platforms that allow them to reach wider audiences and secure funding in new, innovative ways. Additionally, by adopting flexible programs NGOs can respond more quickly to emerging challenges and shifting demands. Advocacy for supportive policies that promote conducive regulatory environment will also be crucial.

In this era of uncertainty, Tanzanian NGOs must adapt, innovate, and diversify their funding strategies to remain resilient. By strengthening local partnerships, leveraging technology and working with the government, private sector, and communities. 

Well, while the road ahead is challenging, it is not without hope. The NGOs that survive and thrive will be those that embrace new strategies, diversify their funding, and remain committed to their mission ensuring they continue to serve the communities that need them the most.

 Jacqueline Jones Mndeme is the Country Representative at Catalyste+ Tanzania. [email protected]