The development of donors’ approaches to capacity strengthening has been shaped by a combination of social, political, economic and sectoral forces, as well as by sustained engagement with civil society organisations themselves. Non-profits have played a central role in this process – articulating what meaningful support looks like in practice, sharing feedback on funding relationships, and advocating for approaches that reflect their lived realities and priorities.
These drivers do not carry equal weight across contexts. In European philanthropy in particular, immediate pressures such as the rising cost of living, tightening financial conditions, shifting public funding priorities, and increasing political polarisation are often at the forefront of decision-making. These dynamics are shaping what funders prioritise and how they design and deliver support.
Seeing through a lens of interconnected systems
War, authoritarianism and economic contraction have placed organisations under immense strain. Across Europe and beyond, cost-of-living pressures, inflation and uncertain public budgets have reduced the predictability of funding environments, while in some cases increasing demand for services.
In many contexts, donor withdrawal has compounded these pressures, turning structural shocks into acute institutional crises. Many organisations are operating under sustained uncertainty, with some effectively in survival mode. These conditions of geopolitical instability and funding crises have prompted some funders to rethink what “effective support” means, with greater attention to flexibility, crisis sensitivity, and the capacities that enable organisations to endure and adapt. This includes not only organisational systems and financial latitude, but also leadership, staff well-being, and the ability to make strategic choices under sustained uncertainty.
Shrinking civic space and political polarisation
While historically more acute in other regions, restrictions on civic space are increasingly affecting European contexts as well. Rising political polarisation has contributed to a more contested operating environment, where civil society organisations face heightened scrutiny, reputational risks, and, in some cases, legal or administrative constraints.
These dynamics are prompting funders to reconsider how support can strengthen not only organisational systems, but also legitimacy, trust and relationships with communities and stakeholders. In this context, capacity strengthening increasingly encompasses the ability to operate effectively under conditions of contestation and uncertainty. Taken together, these drivers have created both a necessity and an opportunity for rethinking how to provide capacity strengthening – not as a technical add‑on, but as a core, values‑aligned practice capable of supporting organisations through profound uncertainty.
The locally led development agenda
Amplified by Covid‑19 and long-standing critiques of Global Minority‑led development, the locally led development agenda has also played a significant role. International shocks exposed the fragility of western-led models and systems, and underscored the importance of local leadership, decision‑making authority, and contextual expertise. As a result, capacity strengthening support has increasingly shifted toward models that redistribute power, lift local expertise and knowledge, lead with meaningful participation, and support context‑sensitive organisational design.
Influence of global social movements
A major driver has been the influence of global social movements. Movements such as #MeToo, Black Lives Matter, and intersectional feminist and disability activism have prompted a deep reckoning within philanthropy, revealing how organisational cultures often fail to align with the values they espouse. These movements accelerated conversations on equity, inclusion, representation and internal accountability, making it clear that OD must address values and power dynamics, not just structures and systems.