Civil society organisations (CSOs) across the Eastern Partnership region have long faced difficulties in accessing funding. Azerbaijan and Belarus place restrictive measures which hamper access to funding, particularly from foreign sources, cash donations and anonymous donations. Since 2024, Georgia’s foreign agents’ law has tightened funding restrictions. In Ukraine, Armenia, and Moldova, state support, tax benefits and philanthropy remain underdeveloped and inefficient. At the same time, authoritarian regimes have also been increasingly limiting CSO work, including by adopting laws to silence dissent, escalating the criminal prosecution of civil society, launching smear campaigns against CSOs or delegitimising the sector by labelling them foreign agents.
The freeze on US funding has a devastating impact on civic groups in the region, as well as their legal environment and financial sustainability. Critical and watchdog CSOs, among others, are facing up to 90% funding freeze, putting them at risk of losing qualified staff, being unable to engage experts and losing their offices. We already see the immediate effect of such a move: Georgian authorities, emboldened by the current political dynamic, have proposed a sweeping legislative crackdown, with restrictions on civil society, independent media and public dissent.
Yet, civil society keeps defending the rights of all. Ukrainian civil society delivers crucial services in the midst of war, making it Ukraine's 'secret weapon’. Georgian civil society mobilised and works with international institutions to prevent the country from slipping into autocracy. Even exiled CSOs from Belarus manage to leverage international advocacy to improve conditions in the country
4 strategic priorities for the EU, governments and private funders
Civil society in the region has been instrumental in driving democratic reforms, development and providing social services. Groups monitoring elections, protecting human rights, media organisations and those promoting transparency and accountability are now in danger – along with the democratic future of the region. Many find it challenging to pivot towards alternative sources of funding to sustain their important work, as philanthropy, crowdfunding or tax benefits are not well established in their countries. That is why it is essential for funders to protect and encourage civil society's strategic role in promoting democracy, support these activities now and invest in developing long-term support in the future.
1. Ensure emergency funding as it is crucial for CSOs to survive
Donors can pool their funding, simplify operational and reporting requirements and support the groups experiencing the biggest challenges.
As an immediate step, existing funding streams need to increase funding opportunities, especially for groups working on democracy protection, rule of law or supporting LGBTQI+ communities and environmental initiatives. In the EaP region, the latter groups already face restrictive laws and narratives. In 2024, Georgia passed a law banning LGBTQI+ content and prohibiting demonstrations promoting LGBTQI+ identities. This threatens CSOs advocating for LGBTQI+ rights, many of which may be forced to shut down. Meanwhile, in Armenia, CSOs challenging environmental policies face social media attacks and defamation.
Donors can leverage existing support mechanisms, but also consider adjusting their conditions – such as removing the co-funding requirement and increasing the ceiling for indirect costs.
Funders can also combine their resources for a collective goal, such as in the “She Decides” alliance, started by the Netherlands in 2017 as a response to the Global Gag Rule. Several countries, including Belgium, Denmark, and Canada, contributed to this fund. The “She Decides” platform supports individuals and communities around the globe to take collective action for sexual and reproductive rights, highlighting the importance of coordinated international efforts in times of crisis.
2. Invest in philanthropy infrastructure and resource mobilisation to catalyse future financial sustainability
Donors can amplify systemic change by supporting measures like the tax percentage designation mechanism, tax benefits for individual and corporate donors and policies that enable CSO economic activities.
As repeatedly highlighted by organisations working in the region, donors have to invest in developing the infrastructure for domestic funding and sustainability. An enabling environment is critical for philanthropy to thrive. For example, while tax benefits can stimulate giving, such benefits for individual donors are non-existent (except in Ukraine), and tax benefits for corporate donors in Moldova and Armenia are not attractive enough. As digital technologies become more common, some countries in the region increasingly adopt legislation that affect fundraising practices. This includes rules, for example, on the use of virtual assets and open banking to enable the full-scale use of PayPal and other digital payment systems. In Armenia, there is a growing trend of using crowdfunding platforms. However, the tax legislation creates additional challenges for intermediate organisations providing crowdfunding platforms. Similarly, in Moldova the viability of crowdfunding platforms is threatened as they are subjected to bank policies, which are designed for online stores and not apt to their nature. Digitalisation will remain a priority for several EaP governments in the years to come, creating a window of opportunity to leverage it for CSO financial sustainability.
Donors can support CSO advocacy efforts to enhance an enabling environment for giving. ECNL’s work with partners on proposing a model to expand philanthropy in Moldova and research on stimulating philanthropy can serve as inspiration.
3. Work with banks to limit de-risking and ensure that anti–money laundering (AML) rules do not impact the work of CSOs
Donors can build on existing resources and lessons learned from past crises to eliminate challenges in financial access.
For CSOs to be able to continue their work and operate effectively, it is essential that their access to financial services is uninterrupted, meaning they can freely open bank accounts, transfer funds or process payments. Currently, they experience challenges due to banking restrictions, unintended consequences of AML regulations, and abuse of such measures by authoritarian governments. Belarusian CSOs, both in-country and in exile in Georgia, Poland and Lithuania, struggle with account access and fund movements due to strict AML norms. In Moldova, AML/CFT banking policies create barriers to CSOs’ fundraising activities. In Ukraine, CSOs struggle with bank de-risking, including blocked accounts and restrictions on cross-border transfers.
In past crises, CSOs, networks and donors have worked together in developing successful strategies and solutions to overcome challenges with access to financial services. Now they can build on existing resources, such as the Tbilisi principles, resources on de-risking and examples of enabling fundraising policies in crisis situations. Donors can provide resources to support CSO efforts to improve access to banking services, and use their networks and to bring stakeholders together.
4. Support CSOs in preparing to identify new threats and take action
Donors can come together to provide continuous funding investing in flexible ideas for innovation, testing solutions and fighting back. They can also leverage new technologies to support the diversification of funding in the region.
Short-term survival is a priority, yet the philanthropic community needs to continue to fund CSOs’ preparedness and action. Further crises are likely to emerge in the near future: CSOs need support to anticipate emerging challenges and take proactive action in order to remain effective in a rapidly changing landscape. Investing in the preparedness of pro–democratic movements is vital as authoritarians thrive on silence. Consistent monitoring, such as is done under the CSO Meter, is essential for the early detection of threats and the development of sustainable solutions.
The use of digital technologies opens new horizons for CSOs to engage more people and conduct more targeted outreach. As technologies, and therefore opportunities and risks, are rapidly evolving, donors should support organisations to strengthen their knowledge on how to use digital technologies effectively, responsibly and safely, and consider the application of ECNL's good practices on developing in digital fundraising.
Promoting and protecting the space for civil society to take action is essential for democracy. CSOs all play a vital role in this: from hobby groups and service providers to research institutions, and advocacy groups. Despite their diversity, CSOs share a common purpose: fostering community and enhancing meaningful lives. They deserve the necessary support to thrive in an enabling environment.