With $48M in philanthropic backing, a division of USAID relaunches as nonprofit

Published: Friday, February 6, 2026 at 1:14 pm

Former USAID Division Relaunches as Nonprofit with Philanthropic Backing

WASHINGTON - A division of the U.S. Agency for International Development (USAID) that was eliminated last year has been reborn as an independent nonprofit, the DIV Fund. This move allows the organization to continue its international work despite the previous administration's cuts to foreign funding. The relaunch is made possible by $48 million in philanthropic backing from two private donors.

The DIV Fund aims to operate as a research and development hub, identifying and supporting the expansion of affordable and efficient interventions. The nonprofit plans to grant out $25 million annually, which is slightly more than half of the division's budget when it was part of USAID. The organization's success in fundraising is attributed to its niche focus and existing relationships with donors.

The DIV Fund has already allocated $20 million to former recipients, with $28 million available for future grants. The fund will issue an open call for applications this year. The organization plans to collaborate with major donors like the World Bank and other countries to promote its recommendations and encourage the development of similar research funds.

The DIV Fund's scientific director, Michael Kremer, noted that while private funding is helpful, it only partially fills the gap left by the loss of U.S. government support. The fund's focus on programs that can secure funding from local governments or generate revenue is seen as crucial, especially with cuts to foreign assistance from various donor countries. The organization is open to working with the U.S. government.

BNN's Perspective: The DIV Fund's transition to a nonprofit model, fueled by private philanthropy, offers a potential pathway for continued innovation in international development. While the loss of government funding is a significant challenge, the fund's focus on efficiency and sustainability, coupled with its ability to attract private investment, could prove vital in a changing landscape of foreign aid. However, the long-term impact will depend on the fund's ability to maintain its financial support and its ability to work with the U.S. government.

Keywords: USAID, DIV Fund, nonprofit, philanthropy, foreign aid, international development, funding, grants, research, innovation, sustainability, Michael Kremer, Coefficient Giving, Otis Reid, randomized control trials

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