The US non-profit sector has been subjected to intense scrutiny under the current administration. Perhaps the most significant development has been the drastic reduction in funding for international aid through the US Agency for International Development (USAID). Once the world’s leading provider of humanitarian aid, USAID has seen its funding slashed to less than 20% of what it was prior to the current presidency. This has crippled the operational capacity of some US non-profits working globally, especially where existing programs are being moved under the direct control of the State Department, better to align foreign aid with an “America First” agenda.

In parallel, American universities,  have also come under political fire. Institutions that focus on research related to social justice, climate change, and international development have been accused of political bias, with some facing threats or actual withholding of federal funding. Billions of dollars in grants and contracts have been frozen or redirected, undermining the ability of higher education institutions to support external research initiatives, including those led by non-profit collaborators. The chilling effect on academic freedom has extended to non-profit beneficiaries, many of whom had previously relied on these partnerships for consistent funding and shared expertise.

Beyond funding cuts, non-profits with a focus on environmental sustainability, climate policy, and equity, diversity, and inclusion (EDI) have been adversely impacted. These organisations are increasingly viewed with suspicion by federal authorities and have found themselves targeted not only through defunding but also through burdensome regulatory proposals. Suggestions to amend tax exemptions, introduce complex reporting requirements, or conduct political investigations into non-profit activities have left many feeling as though they are operating under siege.

This environment of political and regulatory uncertainty renders mid to long-term planning a huge challenge and has become a significant distraction from advancing the mission. The priority for some US-based non-profits has therefore shifted from growth and expansion to survival. In light of these challenges, some non-profits are now looking across the pond to a more benign and supportive jurisdiction to host their operations.