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You are here: Home / cat / Overcoming Humanitarian Funding Shortfalls Through Mutualisation

Overcoming Humanitarian Funding Shortfalls Through Mutualisation

Dated: December 1, 2025

The humanitarian sector is facing an unprecedented funding crisis, forcing organisations to find innovative ways to sustain operations. With global humanitarian needs reaching 300 million people in 2025 and funding covering only a fraction of these needs, aid actors are challenged to respond effectively with limited resources. Mutualisation, or resource pooling, has emerged as a promising strategy to optimise the use of available resources, particularly in supply chains and logistics, which often account for 60–80% of operational costs. By sharing expertise, goods, and services, organisations can deliver more with less while navigating the constraints of reduced funding.

Mutualisation involves collaboration between humanitarian actors to share resources, goods, facilities, or services. This approach helps reduce costs for essential activities, such as office space, storage, and procurement, while supporting innovative solutions to operational challenges. For instance, joint procurement allows organisations to negotiate better prices, identify reliable suppliers, and improve environmental sustainability through shared waste management solutions. Such cooperation also fosters transparency, efficiency, and preparedness, enabling NGOs to maintain continuity of operations despite financial constraints.

The practice of mutualisation is not new but has historically been ad hoc and informal, such as sharing transport or storage. In the current funding environment, formalising these collaborations at an institutional level is critical. By establishing structured partnerships, NGOs can enhance service delivery, strengthen relationships with other organisations, and create scalable solutions for emergencies. Small and medium-sized organisations particularly benefit from cost-sharing and collective problem-solving, which enable them to participate in initiatives that would otherwise be unaffordable.

Practical examples highlight the effectiveness of mutualisation in logistics, procurement, and human resources. The European Union Humanitarian Air Bridge (EU HAB) demonstrates pooled international transport, helping NGOs deliver supplies efficiently while minimising carbon emissions. Joint procurement initiatives across multiple countries have achieved average cost savings of 13% while improving transparency and market intelligence. Similarly, joint human resources projects allow NGOs to share subject-matter experts, addressing staffing gaps and specialised needs in the field, such as solar energy installation or IT support. Environmental sustainability initiatives also benefit from resource pooling, ensuring that projects continue despite budget cuts and limited field staff.

Successful mutualisation depends on preparedness, trust, and shared commitment. Early planning, established networks, and prior collaboration increase the likelihood of effective resource pooling during emergencies, as seen in Lebanon in 2024 compared to initial challenges during the 2022 Ukraine crisis. NGOs must foster a culture of collaboration, breaking silos and sharing information to make mutualisation instinctive rather than occasional. Funders are increasingly recognising the value of these joint initiatives, encouraging organisations to demonstrate cooperation as a criterion for funding allocation.

In conclusion, mutualisation has become an essential strategy for humanitarian organisations responding to today’s funding challenges. By reducing costs, improving operational efficiency, and promoting collaboration, resource pooling enables NGOs to continue critical humanitarian work despite shrinking budgets. Preparedness, trust, and structured collaboration among NGOs, funders, and suppliers are vital to the long-term success of mutualisation. As global humanitarian needs continue to grow, joint initiatives in logistics, procurement, human resources, and sustainability will remain crucial for maintaining impact and resilience across the sector.

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