After more than 25 years advising organizations across sectors, I’ve come to appreciate the vital role NGOs play in filling the gaps governments can’t, or won’t, address. From frontline social services to environmental stewardship to global health and education, their work is often visionary, community-led, and deeply human. But I’ve also seen behind the curtain. And one uncomfortable truth emerges time and again: far too many NGOs are built on a financial foundation so narrow that one funding shift, often from a single government department, can bring the entire structure down.

This doesn’t mean these organizations lack heart or competence. Quite the opposite, but when 60 to 80 percent of their time and energy is spent chasing the next tranche of funding just to pay rent or keep skeleton staff employed, something is clearly out of balance. I’ve worked with executive directors who are more skilled in crafting grant proposals than in delivering the programs they were trained to lead. I’ve seen staff burn out, not from the intensity of service delivery, but from the treadmill of fundraising cycles that reward persistence over purpose.

The tension is most pronounced when a single government agency becomes the main or only funder. In those cases, the NGO may retain its legal independence, but it quickly becomes functionally dependent, unable to challenge policy, adapt freely, or pivot when the community’s needs shift. I’ve often told boards in strategic planning sessions: “If your NGO would cease to exist tomorrow without that one government grant, then you don’t have a sustainable organization, you have an outsourced program.”

This is not a call for cynicism. It’s a call for structural realism. NGOs need funding. Governments have a legitimate role in supporting social initiatives. But the risk lies in overconcentration. With no diversified base of support, whether from individual donors, private philanthropy, earned income, or even modest membership models, NGOs are vulnerable not only to budget cuts, but to shifts in political ideology. A change in government should not spell the end of essential community services. And yet, it too often does.

What’s the solution? It starts with transparency and strategy. Boards must get serious about income diversity, even if that means reimagining their business model. Funders, including governments, should fund core operations, not just shiny new projects, and do so on multi-year terms to allow for proper planning. And NGO leaders need to communicate their value clearly, not just to funders, but to the communities they serve and the public at large. You can’t build resilience without buy-in.

Supporting NGOs doesn’t mean ignoring their structural weaknesses. In fact, the best way to support them is to help them confront those weaknesses head-on. Mission matters. But so does the means of sustaining it. And in today’s volatile funding landscape, the most mission-driven thing an NGO can do might just be to get smart about its money.