1. A year not to be remembered

2025 was definitely not a good year for NGOs and humanitarian agencies. USAID was shutdown, which reduced global program funding by $21.7 billion - a massive amount - with direct implications on operations. Governments reduced aid spending, further worsening the funding outlook.

We know the crude reality - thousands of humanitarian workers were laid off and the reach and depth of programmes was reduced, as humanitarian agencies had to reduce their budgets - a domino effect that progressed from the largest to the smaller organizations.

Yet, at the same time, the number of emergencies and protracted conflicts has increased. Sudan, Gaza, Syria, Ukraine, Yemen, Afghanistan, Myanmar, Somalia, Democratic Republic of Congo were hot spots of humanitarian assistance. 

Consequently, aid delivery has spread thin.

However, as we approach Christmas time and the turn of the year, it is also time to look to 2026 through the lens of hope.

2. Facing the facts

A significant amount of funding has dried up. Direct and indirect government aid represented a significant share of the income of some humanitarian agencies, namely UN agencies. As an example, UNICEF's Public sector income constituted 74 per cent or $6,070 million of total income in 2024. USAID shutdown alone represents a significant impact on its budget. 

The consequences are stark: health crisis as diseases resurge where humanitarian agencies ensured containment, humanitarian breakdown, and strained systems especially in low-income countries.

The sector faces great challenges and needs to adapt to this new reality. The speed humanitarian agencies and NGOs they are able to adapt will be a defining factor for their survival as relevant organizations and even more importantly, for the future of the ones they assist.

3. Three Actions for adaptation

Biology provides us interesting lessons. The natural selection theory tells us that organisms that don't adapt to their environment do not survive. The same happens with humanitarian organizations in this uncertain, dynamic and fast changing environment - they need to be nimble, adapt fast and be proactive in the face of the challenging world dynamics.

We propose 3 simultaneous actions:

a) Tap smartly into alternative sources of funding

b) Embrace risk as a source of future success

c) Change shape through Digital Transformation

a) Tap smartly into alternative sources of funding

As public-funding dries up and becomes more challenging, it is time to tap into alternative sources of funding. It is time to reconnect to individual and collective supporters - individual donors, companies, cluster associations.

b) Embrace risk as a source of success

In an increasingly uncertain world, risk is omnipresent. The products that worked in the past may not be the ones that perform in the future (ex: Recurring donations). As such, you have to find new products and new ways of reaching out to your supporters. This means you need to embrace risk through innovation - generate enough innovations so that, although the majority will likely fail, a few ones will prove their worth and build up your successful product line of the future, well adapted to the context - ensuring the survival and success of your organization. New products, business models, ways of working - they are created through a process of structured innovation.

The ability to generate innovations in quantity and quality and simultaneously in an economical way is the challenge. With deep experience in implementing effective innovation processes, you can rely on our expertise to build a successful future for your organization.

c) Change shape through Digital Transformation

The Oxford English Dictionary defines transformation as "the action of changing in form or shape". Digital Transformation is the most effective way of changing the shape (organization, ways of working, processes) of your organization so it can fulfill its mission and create more value to its supporters.

Digital transformation is guided by the business objectives, so that operational excellence, processes, tools, technology, people and culture are reshaped in order to achieve them. Digital transformation is not about digitization of old processes, or about using a new tool. It is an integrated process of change towards a different organization, better suited to its environment, so it can thrive. With experience in NGOs and many global organizations - from manufacturing to public sectors - we are the right partner to support you in developing a Digital Transformation strategy that really works - and ensures the success of your organization.

4. Making hope real

After a challenging 2025, there is hope for 2026. Humanitarian agencies and NGOs need to go beyond simple digitization and execute real Digital Transformation, in a way that innovation becomes part of its culture, and make them agile and capable of engaging with their supporters.

You can always rely on Mourinho Solutions as a solid partner to support you in overcoming these challenges so your organization can thrive in a world of constant change. 2026 can be the year to achieve it. Together, we can make it happen.