CIVICUS speaks to Jessie Krafft, president and CEO of the Charities Aid Foundation (CAF) about the challenges and opportunities facing civil society today.

Around the world, civil society organisations (CSOs) are struggling to stay relevant and financially stable as global support shrinks and far-right forces gain ground. Individual donations have become more important than ever. CAF’s World Giving Report analyses the nature of generosity by telling both sides of the story: why people donate and how CSOs cope, drawing on insights from donors in 101 countries and over 3,000 organisations. It shows people give because they care and want to make a difference, and that CSOs are still valued and trusted. At the same time, it also shows how rising demand for CSO services makes funding their biggest challenge, underlining the need to diversify resources and build resilience.

What are the main challenges civil society is facing today?

When we talk to partners in civil society, funding and financial sustainability are always at the top of the list. Four in five CSOs are struggling to keep their finances stable, which isn’t surprising given the growing trend in governments cutting foreign aid and development budgets. For some organisations, this has meant reducing staff or shutting down. Those that remain in place must face rising costs, tighter regulations and smaller pools of donors.

But it’s not just about money. Organisations also are also facing operational challenges, from using technology effectively to recruiting and retaining staff. Half of the CSOs we’ve surveyed also said that raising awareness and connecting with the right audiences can be difficult. Interestingly, while organisations don’t always think that building trust and sharing information about their impact are major challenges, our research shows donors care deeply about these and consider them highly important in their decision to donate.

How are CSOs proving their relevance?

Despite all the challenges, CSOs around the world are demonstrating remarkable resilience and adaptability. In the face of increased demand and fewer resources, they are being pushed to find new ways of proving the value of their work and the importance of their missions, and of attracting sustained support.

CSOs are diversifying their income sources, engaging communities more directly and investing in digital platforms to build trust and show their impact. They are using storytelling techniques and updates in real time to stay connected with their supporters, and the results speak for themselves. When we asked people how important they think charities are, the global average rating was 11 out of 15. This demonstrates that civil society continues to be trusted and valued.

CSOs are using these challenging times as an opportunity to evolve by strengthening local partnerships, embracing community-led approaches and fostering cultures of giving. In doing so, these organisations are not only surviving but proving their indispensable role in building resilient, compassionate societies.

What role do people play in supporting civil society, and is it enough?

The World Giving Report shows that individuals play a critical role in sustaining civil society through their donations, volunteering time and everyday acts of kindness. In 2024, around two-thirds of people worldwide donated an average of 1.04 per cent of their personal income, with countries including Egypt, India and Nigeria exceeding two per cent. Volunteering is also very relevant, with 26 per cent of people worldwide giving their time to CSOs.

But while these contributions are inspiring and vital, they are not enough to meet the rising demands placed on civil society. With government aid declining and social needs rising, CSOs are under increasing pressure. We need coordinated efforts, more innovative funding models and stronger institutional support to ensure the long-term resilience of the social purpose ecosystem.

What can organisations do to strengthen resilience?

Of course, financial health is key. CSOs need to secure enough income to fund their operations and this must come from a diverse range of sources. This help them remain independent and ensure they can survive if one donor or combination of donors ends their support.

But resilience goes beyond finances. Organisations need to stay true to their missions and prioritise the wellbeing and development of their staff through effective leadership. They also need to be able to evidence their impact and communicate it clearly. This will help them build stronger partnerships with the communities they serve and build trust with donors.

Collaborating with other CSOs is also key–. This allows them to support each other in times of crisis and strengthen their work collectively. Finally, understanding the economic, political and social context helps organisations anticipate challenges and seize opportunities, making them stronger, more adaptable and more effective in the long term.