Shifting Funding, Strengthening Systems: Where Are Local Intermediaries—and How Do They Work?

As global aid budgets shrink and calls for locally led solutions grow louder, the humanitarian and development sectors are facing a critical question: How do we most effectively and efficiently support local systems to deliver results?  

At The Share Trust, we believe part of the answer lies in local intermediaries—organizations embedded within their communities, countries, or regions that channel funding and support to a broader ecosystem of local actors.  

Channeling funding through local intermediaries can be especially appropriate when: 

  • Goals include strengthening local or regional systems or networks.  

  • Funding is intended to support multiple geographic or thematic communities.  

  • The donor can only directly manage a limited number of grants. 

  • Funding needs to be moved in larger amounts than small organizations can typically absorb.  International NGOs (INGOs), development contractors, and UN agencies often serve as intermediaries, but local, national, and regional organizations—many of which have long been active in their communities — remain under-recognized and under-utilized in global aid partnerships.  

Local intermediaries are deeply rooted in local systems and continue their work beyond donor cycles, and their proximity can make them more accountable to local stakeholders. Our Passing the Buck studies also show that working through local rather than international intermediaries can be more cost efficient — a finding that’s especially relevant as global funding tightens.  

But the case for funding local intermediaries goes beyond efficiency. It’s about building a more just, resilient, and accountable aid system — one that invests in local leadership, strengthens local systems to delivery, and grounds solutions in the realities of communities themselves.  

These insights have sparked growing interest in local intermediaries as part of a broader shift toward locally led action. Yet one of the challenges for donors is understanding  where are these intermediaries, and how do they work?  

To start addressing this question, we launched a global landscaping study of local intermediaries. This living study helps funders identify opportunities to channel more support through local intermediaries—bridging the gap between international financing and locally led action. 

What Is a Local Intermediary? 

In this study, we define a local intermediary as an organization that: 

  • Originates and is headquartered in the Global South/Global Majority; 

  • Has local leadership and decision-making structures; 

  • Plays a regranting and/or capacity-strengthening role for other local actors. 

Importantly, being an intermediary isn’t usually an organization’s entire identity. Instead, it’s often one of the functions it plays within a larger ecosystem. Whether they are NGOs, networks, coalitions, or foundations, these organizations help shift resources and power closer to communities. 

 

A Spectrum, Not a Box 

To reflect the diversity of local intermediaries, we developed the Local Intermediary Spectrum (LIST) to highlight that defining and categorizing these organizations is not clear cut.  This flexible tool categorizes intermediaries based on: 

  • Origin and leadership 

  • Function (e.g., funding, capacity support) 

  • Organizational type (e.g., foundation, network, community-based organization) 

  • Thematic focus (e.g., health, women’s rights, climate resilience) 

  • Size, staffing, and grantmaking capacity 

This framework helps donors and partners better understand not just who these organizations are, but how they operate—and where there might be opportunities for partnership. 

 

What We Found 

We mapped 126 local intermediaries across 11 countries, all with Global South roots and leadership.  

  • Of these, 65% focus on regranting, and 60% engage in capacity sharing.  

  • Most are fairly small, but several organizations operate with 40+ staff and have received grants of over $500,000. 

 

What’s Next? 

This study is a starting point, not a conclusion. We plan to: 

  • Expand the mapping with deeper country-level studies; 

  • Publish case studies that highlight effective intermediary models; 

  • Engage donors, governments, and grassroots actors to shape more inclusive funding pathways. 

We invite partners to: 

  • Use this report to identify potential intermediaries. 

  • Collaborate on regional or sector-specific deep dives. 

  • Continue to help build a funding ecosystem that is truly locally led. 

  • Join the conversation on LinkedIn: What else would you like to learn about the landscape of local intermediaries to help guide our future research? Are there other organizations you think we should include? 

Courtenay Cabot Venton