What's Happening?
A division of the U.S. Agency for International Development (USAID), previously eliminated by cuts from the Trump administration, has been reestablished as an independent nonprofit organization. This transformation is supported by $48 million in funding from two private donors. The newly formed nonprofit, known as the DIV Fund, aims to continue its international development work, which was previously halted due to the cessation of foreign funding. The DIV Fund will operate as a research and development hub, focusing on identifying cost-effective and efficient interventions to support their expansion. The organization plans to grant $25 million annually, which is slightly more than half of its previous budget under USAID. The DIV Fund has already
allocated $20 million to former recipients and will open applications for future grants. The organization intends to collaborate with major donors like the World Bank to further its mission.
Why It's Important?
The relaunch of the USAID division as a nonprofit is significant as it represents a continuation of international development efforts that were previously disrupted. The DIV Fund's ability to secure substantial philanthropic funding highlights the importance of private sector involvement in sustaining development initiatives. This move could potentially fill some of the gaps left by reduced government support, ensuring that effective programs continue to receive funding. The DIV Fund's focus on cost-effective interventions could lead to more efficient use of resources in international development, potentially influencing how future aid is allocated. The organization's success in attracting private funding may encourage other development initiatives to seek similar support, fostering a more diverse funding landscape for international aid.
What's Next?
The DIV Fund plans to issue an open call for grant applications, which could lead to the discovery of innovative development solutions. The organization aims to work with international donors and governments to expand its impact. As the DIV Fund establishes itself, it may influence other countries and organizations to adopt similar models for funding development projects. The nonprofit's approach to sustainability, by encouraging local government funding and revenue generation, could serve as a model for other development initiatives. The DIV Fund's collaboration with major donors like the World Bank may lead to the creation of new research funds, further supporting international development efforts.
