Private aid flows to developing countries have increased significantly in recent years. This represents a significant change to the architecture of global aid, which has long been dominated by governments. Worldwide, private aid totaled at least $49 billion in 2007, almost half the amount provided as official development assistance. Domestically, funding from private aid actors—including foundations, corporations, NGOs, universities and religious organizations—actually exceeded U.S. government assistance that year, $33.4 billion compared with $21.8 billion.

InterAction has found that funding of its members from private sources—foundations, corporations, and millions of individuals—outweighs U.S. government funding by a ratio of 2 to 1. NGOs’ ability to mobilize private funding reinforces InterAction’s effort to promote a strengthened relationship between the U.S. government and the NGO sector, and for recognition of NGOs as significant development actors in their own right.