Future NGO Leader: Adapting to shrinking space and rising standards

The Kestria NGO & Not For Profit Global Practice Group brought together global leaders to examine how shrinking civic space and rising accountability demands are reshaping civil society. They discussed how NGO leaders are adapting their strategies, building resilience and redefining leadership to sustain impact in an increasingly complex environment.

Navigating shrinking civic space

How can NGO leaders operate effectively under increasing political, legal and financial constraints?

Tom Smith, Chief Executive at The Halberg Foundation, New Zealand, states that navigating this environment actually feels relatively easy for him, as he is one of the leaders who welcomes these changes. ‘We should focus on how it can make us better and how we move forward. The new Statement of Service reporting requirements are, in my view, a positive development. New Zealand has 5 million people and 28,000 charities, and it is remarkably easy to establish one, so I welcome greater clarity and accountability.

As a team, we look at how we can improve our work, align it with our outcomes and KPIs, and collaborate with other funders. Being challenged has been valuable, and it is a process we have worked through over the last three to four years, often from a vulnerable place.

I am comfortable not getting everything right the first time. Leaders do not need to be perfect; improvement is always possible, and these developments can help us become better.’

Philippe Magid, CEO at The Hunger Project Australia, is less optimistic about navigating this environment than Tom Smith. ‘The operating environment feels like watching a system we built over decades begin to unravel. External aid is declining, services are being reduced, and in Malawi, we are seeing this in real time. Progress in HIV and TB is now at risk, USAID clinics are closing, and the system is weakening.

Across Africa, our self-reliance model fits this context. We are designed to exit communities, working not by running programmes but by building local capacity. Our trained facilitators continue the work after we leave because they have developed the agency to lead it.

When we exit, communities have reached self-reliance and can continue through the systems they have built. We are leaning into this as funding cuts reshape our work with local governments.

Government health systems are losing capacity, and officials are managing major service gaps. The environment feels less like a struggle for survival and more like supporting communities through a crisis. Our focus is helping communities strengthen their self-reliance so they remain resilient even when external systems fail.’

Wilma Roozenboom, Managing Director at Refugee Talent Hub, the Netherlands, believes they are in a different position because they work as an employees’ initiative. ‘We are an NGO but receive no government funding; we are fully supported by our corporate partners. While this protects us financially, our local NGO partners face significant pressure and a shrinking operational space, which indirectly affects our work.

Regarding shrinking civic space, we recognise, like Tom, that it is a reality we must navigate. We have therefore begun positioning ourselves more as an employers’ initiative, as that space remains more open for employers. Increasingly, we present ourselves this way while still operating as a registered NGO and meeting all legal requirements. Our public voice now aligns more with an entity benefiting from an expanding civic space.’

Dikobe Lucas Mphaka, Founder at Township & Rural Development Initiative TREDI, South Africa, explains that the situation in the country has previously focused on getting funding from the private sector. ‘This funding has shrunk over time, and the focus has shifted toward government support. Many NGOs struggle to access these funds because of extensive red tape, often being sent from one office to another. In response, we formed a collective of NGOs operating across Gauteng.

We have begun working with the Department of Economic Development to address these issues and develop programmes for the collective, an initiative that has received strong support. We will roll out projects in January with significant funding aligned to key economic development sectors.

Our NGO’s core focus is addressing economic development challenges in our communities. We aim to develop programmes that help communities sustain themselves and support businesses that can employ more people and nurture new entrepreneurs. This is the direction we are taking, given the shrinking funding pool.’

Have you seen any concrete legal or political constraints in the foundation space, and what strategic choices have you made to work through them?

How do you measure long-term food-security impact and communicate that complexity to your donors?

Philippe Magid highlights that their five- to seven-year project cycle led them to ask what happens after they exit. ‘For years, we reported standard outputs — people trained, workshops delivered, communities supported — but we could not tell whether communities sustained those changes. Which communities thrive, which struggle and why?

An Australian investor challenged us on this during a visit to Benin and funded rigorous research across Africa. We have since studied 86 self-reliant epicentre communities in eight countries we have exited, looking at all cases, not just the successful ones.

So far, 85% of projects are stable or thriving and 15% are struggling. We are now conducting in-depth interviews in 27 communities to understand what sustains outcomes, why some communities scale their impact, and how they cope with shocks such as climate or political crises.

This work helps us see not only what works, but why. If we keep doing the same things, we will not end hunger and poverty. The insights we gather are meant to transform our approach, not just scale it.’

Collaboration and innovation

How can partnerships, networks and new approaches help NGOs sustain relevance and impact in tougher environments?

Wilma Roozenboom gives two examples to illustrate her point. ‘The first example is our partnership with IKEA. For several years, we have worked together to help refugees in the Netherlands enter the labour market by creating practical work opportunities in their stores. IKEA’s global commitment to refugee employment is reflected locally and we helped shape how this would be implemented. From the outset, we aligned on goals, responsibilities, funding and sustainability. IKEA now handles most of the work independently, and we use their experience to influence other employers through advocacy.

The second example is our coalition with several NGOs and corporates focused on reducing regulations that prevent refugees without permits from working earlier. This requires policy change, and we use two approaches: quiet, behind-the-scenes advocacy and broader coalition-building. For example, we co-hosted an event at Microsoft headquarters with major brands and NGOs to highlight needed policy reforms. This collective effort had far more impact than working alone. It is not a deep, long-term partnership, but a stable coalition we can activate when needed.’

Dikobe Lucas Mphaka mentions that shrinking private-sector support in Africa has revealed gaps in government-led economic development initiatives. ‘We began by influencing policy, working with the Department of Economic Development to create the Township Economic Development Act, which guides how government engages with communities. Because we work directly on the ground, we highlighted the challenges people face when applying for grants or tenders across multiple departments and helped bring these departments together to improve coordination.

We now receive grant approval and rejection reports, allowing us to challenge decisions and ensure applicants receive support. These conversations also strengthen training for emerging entrepreneurs. A major issue has been the gap between funders and entrepreneurs, and our collaboration and policy work have helped create a more effective system for supporting young and emerging entrepreneurs in South Africa.’

Leadership Skills for a New Era

What is the one unexpected leadership skill you have had to develop in the environment we have discussed?

Tom Smith reflects that leadership requires patience and a bit of resilience. ‘I have found the unexpected aspect to be how much a leader must personally reflect on these issues. For me, the most demanding part of leadership is the people component and the responsibility of supporting my team. I have 22 employees, and I care deeply about all of them. When I feel stress, it is almost always due to people-related matters rather than the work itself. Life events — illness, bereavement, health issues, new children — inevitably affect how we work, and managing patience, giving people space, and meeting operational demands is challenging.

This has been the greatest test of my leadership skills. Patience, empathy and understanding are essential, and while not entirely unexpected, the sheer number of personal circumstances that shape how people show up at work is striking when leading a diverse team.’

Wilma Roozenboom brings forward two topics. ‘The first topic is that several colleagues have a refugee background, and rising anti-refugee sentiment, in the Netherlands and globally, affects both our work and them personally. In this climate, some felt unwelcome in their own neighbourhoods and began to question whether they still belonged here. Even a colleague with a Dutch passport and plans to marry a Dutch woman wondered what the political climate meant for him. These developments shape our team dynamics. Those directly affected respond differently from those, like me, who experience it only at a strategic level. Because I was born and raised here, it doesn’t impact me personally, which creates a particular dynamic in a close, stable team — and managing that dynamic is a key part of my leadership role.

The second topic is balancing our ambitious long-term strategy with day-to-day guidance. How do we translate the vision into concrete actions for today and tomorrow? Some team members want to engage in long-term thinking, while others need clear immediate direction. Managing this spectrum is demanding but essential right now.’

Dikobe Lucas Mphaka shares an example from his work with a Communal Property Association (CPA) in South Africa, a community entity that acquires land through restitution. ‘The CPA I support owns about 2,000 hectares of unused land, but when I joined as adviser and later deputy secretary, I discovered that CPAs cannot legally operate as businesses. Banks and the tax system don’t recognise them, so we had to use structures like CCs or PTY LTDs. This pushed me into new legal territory and required advocating for reforms to allow CPAs to trade. I had been asked to help start enterprises on CPA land, only to find it was legally impossible.

A second challenge is that South Africa’s education system doesn’t prepare young people for entrepreneurship. Many graduates lack the skills and mindset to start businesses. Our NGO works to shift this by re-skilling young people and exposing them to opportunities so they can drive local development. We’re already seeing results, with graduates launching small factories, working in automotive, and entering waste management.’

Rising standards of accountability

How do you manage accountability personally as a leader, and how does donor accountability compare with the accountability you feel toward communities?

Wilma Roozenboom explains that there are different types of accountability within their organisation. ‘Financial accountability to donors has been relatively light, as we are funded by the private sector, which generally requires no more than an annual report. As we shift toward foundation funding, the demands are increasing, but although financial accountability is complex, it is not what keeps me awake at night.

Moral and societal accountability carry far more weight. My greatest responsibility, and here I agree with Tom, is to my team. I know all 21 members personally, and I want to be a supportive leader. What concerns me most is helping them stay healthy and able to thrive in a sometimes hostile environment. That means being available when needed, encouraging mutual support and building a strong team culture that does not depend solely on me.

At a broader level, societal accountability is anchored in one principle: never do anything you cannot explain. Every organisational, strategic, financial or personnel decision must be justifiable externally. If someone asks, “Why did you do this?” I should have a clear answer. That question guides my decisions and serves as my moral compass.’

Funding accountability varies by partner. Each year, we review required KPIs and align them where possible to avoid unnecessary new metrics. We no longer need to prove the value of sport for young people with disabilities; the evidence is clear. The greater challenge is demonstrating long-term impact. We have strong case studies, but scaling them is difficult. Still, approaching accountability with openness and honesty makes it far easier to manage.’

What is the main reason you remain optimistic about the future of civil society and the role of NGOs?

Philippe Magid believes there are many reasons to be optimistic. ‘People choose to work with us because they value our strong teams and shared purpose. What motivates me is seeing real change, communities lifting themselves out of hunger and poverty. Spending time with them and witnessing the impact of their hard work keeps me focused.

Our team also has a strong sense of community. I wouldn’t call it a “family,” but a network of committed, connected people doing remarkable work, a sense of community that extends to those we serve and one that’s rare in most organisations.’

‘I believe that when the external environment becomes more challenging, support tends to grow internally,’ says Wilma Roozenboom. ‘We now have many people approaching us, saying that organisations like ours are needed more than ever. This includes both those within our organisation and unexpected allies who reject the current public sentiment and want to stand with us. In challenging environments, positive forces often come together and that support strengthens us.’

According to Tom Smith, we are all driven by the inequity that persists in society. ‘I feel inequity deeply, and that sense of injustice gives me purpose. It brings clarity, direction and attracts committed, purpose-driven people. Because of this, I never pressure partners to support us — if our purpose isn’t enough, that’s okay. I’ve even directed people to other charities, and support often returns in unexpected ways. As long as inequity exists, there will be people driven to address it, and that gives me optimism for our sector.‘

The main reason Dikobe Lucas Mphaka remains optimistic about the future of civil society and the role of NGOs in South Africa is the impact that continues to motivate him. ‘I take great satisfaction in seeing people prosper and my community improve, and the role I play in that progress motivates me. Knowing I can make a meaningful difference is what keeps me going. Feedback, success stories and thank you messages reinforce that motivation and remind me that there is more I can do and that I can inspire others to contribute as well.’

Summary

The future of NGOs will depend on their ability to remain adaptive, principled and closely connected to the communities they serve. Although external pressures continue to reshape the sector, they also create opportunities for renewed purpose, stronger collaboration and more considered, thoughtful leadership.

The Kestria NGO and Not-for-Profit Practice Group is a key partner for organisations navigating the complexities of a rapidly changing global landscape. With in-depth industry expertise, this group helps NGOs and NFPs thrive by identifying leaders who drive innovation and create lasting, impactful change. Kestria specialises in finding social entrepreneurs and strategic leaders who deliver measurable results, making a tangible difference in the lives of individuals and communities worldwide.