A squeeze on funding
Financial precarity remains a systemic risk for the success of national recovery, with 37 per cent of Chatham House survey respondents in 2026 identifying lack of funding as a primary risk. Here, as on other questions, there was a significant disparity between national and regional organizations: while 52 per cent of national-level CSOs received international donor support, only 35 per cent of regional CSOs reported the same (see Annex, Q9). The gap in international support has widened since 2025, when 66 per cent of national CSOs and 43 per cent of CSO operating regionally reported receiving funding from this source. This contraction is largely attributable to the termination of major USAID programmes in 2025. The consequences of US aid funding being withdrawn were felt immediately and represented a serious loss for the sector. According to a February 2025 survey, 42 per cent of Ukrainian CSOs had to suspend or close existing programmes and nearly a quarter were forced to downsize staff.
In 2026, Chatham House survey respondents reported that 19 per cent of their recovery activities were funded by Ukrainian philanthropic organizations. This rate has remained stable since last year (see Annex, Q9). Meanwhile, 21 per cent reported receiving individual donations from Ukrainian citizens – a drop of 10 percentage points compared to 2025. Other studies have shown that widespread economic strain and emotional burnout have resulted in a decline in philanthropic activity, although an overwhelming majority of people continue to contribute their money, time or material assistance.
Strengthening Ukraine’s culture of giving and helping philanthropic sector flourish will be critical to pulling together domestic resources. Ukraine’s philanthropic sector already plays a significant role for social recovery in local communities – for example, by supporting local entrepreneurship, reskilling workers and promoting psycho-social services (see Box 4). Formal measures such as ‘percentage philanthropy’ mechanisms – which allow taxpayers to allocate a small percentage of their income tax directly to a registered NGO – could help revitalize communities and foster deeper social cohesion.
It should be noted that CSOs specializing in veteran reintegration took a different view on risks compared to those working with other vulnerable groups. For CSOs working with veterans and their families, ‘national-level official incompetence’ (44 per cent) outweighed ‘lack of finance’ (34 per cent) as a top concern in the 2026 survey. The difference in results suggests that such organizations feel that veterans’ affairs are sufficiently prioritized in funding cycles, but they worry that national government officials do not adequately understand what veterans need. This thesis is supported by the data published by the Veteran Fund in December 2025, showing that 55 per cent of veterans surveyed felt the state had failed in its obligations towards the veteran community and 40 per cent regarded government veteran programmes as ‘rather ineffective’ or ‘not effective at all’.
Civil society’s internal fragilities
The survey responses in 2026 reveal that 54 per cent of organizations see risks coming from the non-profit sector itself, with national-level groups showing a higher level of concern (see Annex, Q21). These risks fall into three categories. First, there is deep concern regarding the co-option of recovery processes by local officials, through the involvement of ‘loyal’ CSO at the expense of independent groups. This type of ‘imitation’ civic engagement can lead to disappointment among dedicated activists. The level of concern has remained consistent with respondents’ answers from 2025.
Second, there is a lack of effective coordination and trust between CSOs and local authorities. The prevailing environment risks fostering a zero-sum competition for dwindling financial and human resources.
Finally, the survey responses highlighted a persistent struggle with low capacity, competence and burnout among smaller, community-based CSOs. This challenge was also featured in a 2024 study by Ednannia. With reduced capacity, there is a risk that the sector could be monopolized by a few entities with better resources and that civic participation at community level could decline as a result.
