International aid NGOs persevere despite shrinking donations and workforce

Posted on 12 Aug 2026

By Nick Place, journalist, Community Directors

Screenshot 2026 08 11 at 12 10 13 pm
An ACFID Safer World For All event, in Canberra, this week. Pic: ACFID

A major report on the state of donations in the international aid sector has found that fewer donors are giving more, and employee numbers and projects are strained. Yet it also found that the organisations surveyed continue to record significant achievements.

The research was undertaken by the Australian Council for International Development (ACFID), the peak body for Australian non-government organisations (NGOs) involved in international development and humanitarian action. It released its first State of the Sector report in 2018, and the report released late last week is the follow-up, comparing the sector in 2024 to the snapshot from 2018.

The new report recorded the sustained pressure and shifting conditions that ACFID member organisations are battling, but it also found strengthened localisation, collaboration and accountability.

Click to read the report

“Over the period 2018 to 2024, the data shows a sector marked by both resilience and strain,” the report said. Inflation-adjusted revenue has declined for large and medium-sized NGOs, falling below even 2017 levels, although smaller organisations seemed to be experiencing revenue growth.

“Real public donations fell by around 20 per cent between 2015 and 2024, and fewer Australians are donating to ACFID members: down from approximately 8 per cent of the adult population in 2016 (8.3 per cent) to just over 5 per cent in 2023 (5.7 per cent),” the report said. “While the average donation size has increased, this was largely driven by a small number of organisations, rather than sector-wide change. These findings suggest a smaller but more committed donor base, with implications for future fundraising strategies.”

ACFID says its 136 full members and 18 affiliate members operate across 91 developing countries and raised total revenue of $1.968 billion in 2023–24. That revenue included $750 million donated by more than 793,000 Australians.

Increasing financial pressures had seen ACFID members reduce staff by around one-third between 2017 and 2022, especially at larger organisations, the report said.

Women continued to make up the majority of NGO employees (around 70 per cent) and had increased their presence in CEO and board leadership positions, it added.

In launching the report on Thursday, Charities Minister Andrew Leigh referred to the stress caused by a reduction in donors and staff.

“These figures affect organisational resilience and the capacity to plan for the long term,” he said. “They also shape how many communities organisations can reach.”

“The operating environment will remain demanding. Humanitarian need is rising and climate pressure is intensifying.”
Andrew Leigh, Charities Minister

Leigh was enthusiastic about the State of the Sector report’s focus on ACFID member organisations’ commitment to locally led development and projects.

“The report’s new baseline for locally led development is [an] important contribution,” the minister said.

“Forty-three per cent of responding members had an internal commitment or policy on locally led action or partnerships. Almost all organisations reported dedicating staff time to partner-led capacity building and institutional strengthening. Among organisations undertaking advocacy, local partners usually had some influence over that work.

Andrew Leigh (pic: Hilary Wardhaugh)

“Locally led development means listening early and sharing decisions. It means backing local institutions and recognising where knowledge sits. That approach builds capability close to the people affected and supports solutions grounded in local priorities,” he said.

The report found there had been a rise in the need for organisations to prioritise humanitarian assistance.

“Programmatically, humanitarian assistance has increased as a share of activity for many organisations, reflecting both the scale of global crises over the period and gradual shifts in organisational portfolios,” it observed. “While methodological changes explain some of the observed increase, a genuine trend toward greater humanitarian focus is evident.”

Leigh said the decline in donors showed the work ahead for ACFID organisations.

“The operating environment will remain demanding. Humanitarian need is rising and climate pressure is intensifying,” he said. “Civic space is narrowing in many places, while resources remain tight.

“This report shows a sector learning how to work in that changed world.”

More information

ACFID State of the Sector Report 2026

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