Nonprofit organisations in Southeast Asia are facing significant challenges due to systemic constraints, according to a new study by The Bridgespan Group. The research, which surveyed nonprofit leaders across Indonesia, Malaysia, and Singapore, found that 70% of respondents identified the lack of long-term, flexible funding as a critical barrier to scaling their impact.
The study comes at a time when private wealth and philanthropic ambitions are growing in the region, yet these have not translated into a stronger nonprofit sector. This is particularly concerning as demand for nonprofit services is increasing due to demographic changes, climate pressures, and gaps in public systems.
Keeran Sivarajah from The Bridgespan Group highlighted the importance of nonprofits, stating, “Nonprofits in Southeast Asia are a critical part of the region’s social fabric, serving as key partners in delivering essential services, informing policy, and catalysing social and climate innovation.”
The research outlines five strategic shifts for funders and intermediaries to strengthen nonprofit impact. These include increasing long-term funding, enhancing capacity-building efforts, and fostering collaboration among stakeholders. The findings underscore the need for a more robust support system to enable nonprofits to meet rising demands effectively.
As Southeast Asia continues to evolve, the role of nonprofits will be crucial in addressing social and environmental challenges. The study’s recommendations aim to equip these organisations with the necessary resources and strategies to achieve sustainable and scalable impact.
