Cambodia’s social sector is facing significant financial instability as international funding sources continue to shrink. According to a recent report by the Centre for Asian Philanthropy and Society (CAPS), the majority of the country's social delivery organizations (SDOs) are struggling to maintain operations as foreign assistance wanes and local philanthropic efforts remain insufficient.
The data indicates that over 90% of Cambodian nonprofits and civil society groups—which provide essential services in health, education, and humanitarian aid—depend on foreign sources for an average of 80% of their total budgets. This level of reliance is twice as high as the regional average for similar organizations across Asia. The sector has been further impacted by a global reduction in aid, including significant cuts to U.S. foreign assistance programs implemented last year.
In the 2026 Doing Good Index, Cambodia was placed in the “Doing Okay” category, showing improvements in public trust and organizational registration. However, researchers noted that the sector remains fragile due to a lack of government support and limited corporate engagement. Annelotte Walsh, director of research at CAPS, stated that while the sector has shown resilience, the priority must shift toward creating a "more balanced and sustainable funding ecosystem" by fostering domestic philanthropy and better policy conditions.
Despite the financial challenges, there are signs of progress regarding public perception. More than half of the surveyed organizations reported feeling trusted by the public, and over half currently host corporate volunteers. Mar Sophal, program manager at the NGO Forum on Cambodia, emphasized that as international support continues to decline, it is critical to improve cross-sector collaboration and cultivate local resources to ensure these organizations can continue their work.
Source: CamboJA News
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