Over the past year, significant headwinds in the form of donor funding cuts, legal barriers, misaligned values and incentives, and ongoing cash-flow constraints have challenged social innovators to reprioritize and think differently. Donor funding cuts, especially the sudden withdrawal of government development aid, were catastrophic for some innovators and their customers, impacting revenue and forcing organizations to reassess their approach. In response, social innovators continued to evolve beyond single-source donor dependence towards blended, mission-centred finance, though with varying levels of maturity, financial resilience and readiness to scale. This shift took shape through the creation of a range of hybrid structures, including combining for-profit and non-profit objectives, fee-for-service models, impact- aligned investments such as patient equity or concessional debt, and outcome-based and co- funded public partnerships. Some founders also experimented with incentive mechanisms linking pay, reinvestment commitments or other forms of compensation to impact rather than profit. Against these pressures, 82% of survey respondents report being affected by shrinking financial and in-kind resources, as constrained budgets and delayed disbursements forced difficult decisions. Many expanded their funding portfolios, tapped domestic and corporate social responsibility capital and reorganized operations to maintain continuity. Several also achieved new efficiencies by accessing digital tools and AI or by leveraging community and private-sector partnerships to sustain momentum. While the initial shock forced many to make difficult choices, a significant number managed to turn this disruption into an opportunity, broadening their revenue base, prioritizing funding sources aligned with their mission, rethinking cost structures and, ultimately, strengthening their financial foundations.Financial sustainability: strengthening business models Schwab Foundation 2026 Awardees and Impact Report 16

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