How Trump grant freeze affects Ukrainian nonprofits and media — and what they can do next

What's the problem?

On January 20, US President Donald Trump signed an executive order halting all foreign aid programs for 90 days. Shortly after, the US Agency for International Development (USAID) announced it was suspending funding for all projects and programs in Ukraine without exception. By February 1, the USAID website had gone offline. Reuters reports that the Trump administration is considering reorganizing the agency.

Olha Sahaidak, chair of the Coalition of Culture Actors, a Ukrainian nonprofit, discussed the situation with Radio Kultura. During the broadcast, she stated that the USAID suspension had impacted dozens of Ukrainian institutions. The coalition's survey of 36 organizations found that 27 received notices from USAID that funding would be cut off. Early estimates suggest that Ukraine's cultural sector could lose $2–3 million due to these cuts.

The halt in US foreign aid — from USAID and other US State Department funds — has also affected independent Ukrainian media. Outlets such as Bihus.Info, Nashi Groshi, NGL.media, Ukraїner, hromadske, Cukr, Kavun.City, and Slidstvo.Info have reported cuts in their funding. Rubryka is also facing the same financial challenge.

Uliana Movchan, founder of the marketing agency Connection and a communications and fundraising expert who's been helping nonprofits for over 10 years, believes that media outlets didn't permanently lose their funding. She explains that the US, one of the world's largest economies, is expected to allocate a portion of its GDP to help other countries. Moreover, foreign aid is also in America's own interest, as countries like China and Russia are stepping in to take over where the US has pulled back.

Movchan assumes that funding for media and nonprofits could return after three months, but it may not be the same as before. Grants may be smaller, or it could be more challenging to secure them. However, for areas such as human rights, gender equality, combating violence, and LGBTQ+ protection, she warns that funding is unlikely to return at all. 

So, where can NGOs and media outlets find financial support in this new reality? Uliana Movchan addressed this question at SolutionsHub: Fundraising Without American Donors — Where to Look for Opportunities, an event organized by Rubryka. Below, we outline some thoughts and tips from her talk. 

What funding options can replace grants?

• Partner with businesses. Entrepreneurs might be open to supporting media. To find potential partners, check out collaborations between companies and other media or nonprofit organizations. Then, try to connect with businesses that have not partnered publicly with anyone yet. Local businesses could be a good fit if you're a regional outlet. You can reach out to companies through LinkedIn or by contacting their HR departments.

According to Uliana Movchan, the key here is not to ask for money outright but to offer a partnership that benefits both sides. This could be sponsored content, a social media shout-out, or promotional support for the company's events.

• Engage with your community. Building a strong connection with your community of readers or followers is a long-term strategy. There are several ways to turn your community into a funding source. 

One option is to set up a monthly subscription model, which can become a reliable income stream — once you know your subscriber count, you can estimate your monthly income. Another option is creating exclusive, members-only content, like special events or consultations if you're an NGO.

Crowdfunding campaigns are another way to raise funds through one-time donations. Clearly define the fundraising goal and target (what are you raising money for, and how much do you need?) and explain why the donations are vital. What will happen if no one donates?

• Social entrepreneurship. Uliana Movchan believes that 60% of NGOs can turn their services into a sustainable business model. This means that social enterprises can provide services (like psychological support or legal consultations) for free to one group of people while charging another group for the same service.

Another approach is a freemium model. For example, you could offer a free service, like three free consultations, and then start charging for the following sessions. This could be educational products, courses, events, and other socially impactful services. The key is identifying audience segments willing to pay for them.

A more advanced form of social entrepreneurship could be starting a separate business that produces products or provides social services. The revenue would support your organization. However, this route is more complex as it involves managing a business.

One example of successful social entrepreneurship is Sunshine Cafe in Kyiv, which employs people with mental disabilities and Down syndrome. The Ukrainian nonprofit Sunshine People runs the café.

Look beyond grants. Uliana Movchan says grants aren't the only way to secure funding from donor organizations. You can approach potential donors directly, pitch your project, and receive funding if they're interested. In other words, funding doesn't always have to come from open calls — you can take the initiative yourself.

The founder of Connection emphasizes that having a stable, fixed funding source is unlikely, so you need to diversify your budget by combining different funding sources.

Where to find donors?

If you're still looking to secure part of your funding from donors, you won't find a one-stop resource that lists all potential donors for NGOs or media outlets. The best approach is to search online for funding opportunities using keywords like "foundation media," "foundation journalism," and similar terms. Finding donors is personal — by Googling, you can build your database of potential donors and evaluate their resources to see if they might be a good match for your needs.

Let's take a closer look at some ways to attract funding. Within Ukraine, Movchan says, options are limited. Some of the leading Ukrainian donors that fund social initiatives include: 

• Ukrainian Cultural Foundation
• Ukrainian Youth Foundation
• Ukrainian Veterans Foundation

Community councils can also provide funding. Although these grants are smaller than those from international donors, they will more likely be allocated for projects with a strong national angle. In Ukraine, this would be the initiative for the military or veterans, which wouldn't usually get funding from foreign donors. Local foundations may also be a good funding source if you're a new organization.

Private donors within Ukraine also fund projects and provide institutional support to young organizations. The Ukrainian branch of the International Renaissance Foundation is an example.

The European Commission is also an option. You can track opportunities for tenders and grants on their website. However, as a fundraising expert, Olha Movchan advises against applying for European Commission grants alone if you're a young NGO and suggests partnering with other European organizations. The Council of Europe also provides funding, but the money tends to be smaller than that of the European Commission.

Don't forget about private donors abroad. Google! Check out their offers and pay attention to the areas they focus on and the countries they work with.

How to fundraise?

• First, assign fundraising to a specific person. Usually, the NGO leader takes on this role during the organization's early years. Sometimes, finding a dedicated fundraiser isn't even possible. The person responsible for fundraising might have different duties depending on the organization. In some cases, their sole responsibility is raising funds; in others, they might also work on projects.
• You'll need to create a budget and a fundraising strategy. This means deciding what the money will be used for (a breakdown of expenses) and identifying the sources from which you plan to raise funds.
• Lastly, fundraising requires consistency. Set aside regular time — perhaps once a week — to monitor available grants. Based on your research, determine how many foundations you can contact and start applying.

How to find money quickly and navigate turbulent times?

Uliana Movchan believes that if you're a new organization with no track record or haven't officially registered as an NGO, looking for grant funding right away isn't the best approach. As the founder, you are responsible for the organization, so, in the beginning, some expenses may have to come out of your pocket. You can also turn to friends, acquaintances, and local businesses for support — essentially, rely on personal connections. Once you have some results, you can start reaching out to donors for funding.

If you had funding but lost part of it, your priority should be keeping the team together. You'll need to cut costs where possible — giving up office space, canceling service subscriptions, or reducing other non-essential expenses. At the same time, prepare your team for the new reality. You might need to move some staff to part-time roles, determine core team members willing to work as volunteers, given they'll be compensated later, or find other flexible solutions.

Even more helpful solutions!

A personal search for funding is the most effective approach, but you can still check some resources that collect and share fundraising possibilities. These include both paid and free services:

• Grants and Opportunities Telegram channel
• GURT portal
• Prostir Center
• Diia.Business
• fundsforNGOs
• Opportunity Desk platform