Our Impact reports
Social Innovators in a Changing Development Landscape
Overview
The development sector is facing a historic funding crisis, with significant cuts in official aid that particularly affect local social innovators. These innovators are crucial for community development but receive less than 3% of direct funding and face a lack of visibility and support.
In January 2026, Catalyst Now conducted an internal consultation process involving 599 members. It revealed that social innovators are severely impacted by this crisis, having to take measures such as staff reductions or project cancellations. However, the consultation also highlighted that collaboration and the building of infrastructures connecting local, national, and global levels are essential to overcoming these challenges.
This report builds on its four major findings to call on donors, governments, and the social innovation community to transform the traditional aid model into one that is more distributed, flexible, and trust-based, channeling resources directly to communities while strengthening their voice and capacity to drive sustainable change.
Authors
Catalyst Now
Launched
April 2026
Format
Downloadable/printable .pdf document
Overview
The development sector is facing a historic funding crisis, with significant cuts in official aid that particularly affect local social innovators. These innovators are crucial for community development but receive less than 3% of direct funding and face a lack of visibility and support.
In January 2026, Catalyst Now conducted an internal consultation process involving 599 members. It revealed that social innovators are severely impacted by this crisis, having to take measures such as staff reductions or project cancellations. However, the consultation also highlighted that collaboration and the building of infrastructures connecting local, national, and global levels are essential to overcoming these challenges.
This report builds on its four major findings to call on donors, governments, and the social innovation community to transform the traditional aid model into one that is more distributed, flexible, and trust-based, channeling resources directly to communities while strengthening their voice and capacity to drive sustainable change.
Authors
Catalyst Now
Launched
April 2026
Format
Downloadable/printable .pdf document
