By: John S. Morlu II, CPA
The Trump Doctrine on Foreign Aid: Self-Reliance Over Subsidy
From 2017 onward, the Trump administration shifted away from large-scale foreign aid, prioritizing ‘America First’ values and political alignment over humanitarian need.
Key changes included:
- Cuts to foreign aid budgets
- Defunding reproductive health programs
- Favoring large, politically-aligned NGOs
- Tightening subgrant eligibility for small partners
Quote: ‘We are not in the business of funding endless programs in countries that don’t share our values.’ – Mark Green, 2018
Small Nonprofits, Big Consequences
Example: Partners for Peace (fictionalized) lost a $250K USAID grant mid-cycle, forcing closure.
Small nonprofits lacked the financial cushion and lobbying power to survive abrupt changes.
Who Thrived Instead?
Larger organizations like World Vision and Samaritan’s Purse received increased funding.
Fact: NGOs with <$5M budgets saw a 30% drop in federal funding between 2017 and 2020 (Devex, 2020).
Domestic Nonprofits Weren’t Spared Either
Example: Faith and Family Foundation in Ohio lost its SAMHSA grant and had to cut 60% of services.
New compliance rules disproportionately impacted under-resourced grantees.
The Ripple Effects: When Small Nonprofits Collapse
- Local staff are laid off
- Services to vulnerable groups vanish
- Donors lose trusted community partners
- Larger NGOs can’t replace lost relationships
Data: 60% of small nonprofits losing federal funds didn’t survive past 2 years (Independent Sector, 2022)
What Happens When Aid Becomes a Political Football?
Aid was politicized, with funding often tied to ideological alignment:
- Climate initiatives defunded
- Refugee aid slashed
- Cultural exchange seen as unpatriotic
What Can Be Done?
1. Diversify funding: explore foundations, diaspora, and crowdfunding
2. Strengthen financial systems with tools like FinovatePro
3. Form consortiums for shared bidding and back-office support
4. Advocate through coalitions to protect future funding
Conclusion: Austerity Without Empathy Is a Threat to Humanity
Small nonprofits are essential frontline actors. Their disappearance weakens entire ecosystems of care.
Trump-era policy changes still influence budgets and compliance structures today. Support must be intentional and urgent.
Final Word
If we only fund the loudest and the largest, we silence the most impactful. It’s time to stop starving small nonprofits—and start investing in what actually changes lives.
📖 Read next: The Fragile Strength of Not-for-Profits: How to Protect Purpose in a World of Pressures
Author: John S. Morlu II, CPA is the CEO & Chief Strategist of JS Morlu, a globally acclaimed public accounting and management consulting powerhouse.
Through cutting-edge technology and data-driven strategy, JS Morlu helps organizations operate with clarity, control, and compliance.
– ReckSoft (www.recksoft.com ): AI-powered reconciliation for nonprofit and donor accounting
– FinovatePro (www.finovatepro.com ): Cloud accounting for donor-driven missions
– Fixaars (www.fixaars.com ): Empowering nonprofits with maintenance and repair logistics