At the OTT Conference 2025, we kept circling back to the same dilemma: how do think tanks survive when the funding ground shifts beneath their feet? In the session “The future of international cooperation and its impact on think tanks and evidence-based policy research,” we traded stories and strategies. Those conversations shape the reflections that follow.
Mexico’s think tank ecosystem is living through an earthquake, and no one yet knows what will be left standing when the dust settles. The sudden exit of USAID, long a pillar of funding for policy research and civil society, has exposed a fragile structure built on foreign support and political ambivalence. The challenges and struggles are commonly known, but the main and most important question is: who will be able to adapt, and what kind of think tank “sector”—if there is even such a thing at a national level— will emerge on the other side? What happens when the pipeline is cut, but no local safety net is in place?
Back in November 2023, we hosted a panel to discuss the findings of the State of the Sector report, alongside four Mexican think tanks. The next year, during the December 2024 edition of the International Book Fair, we repeated the exercise. The challenges were easy to identify but tough to overcome: shrinking civic space, centralisation, and overall scarcity of funding sources. Which leads us to ask:
Who funds a think tank in Mexico?
- To answer this question, first, we need to understand that “think tanks” in Mexico don’t often identify themselves as such. As we discussed in the sessions mentioned above, policy research organisations in my country often identify themselves as part of the larger civil society sector, which is primarily composed of non-profit, non-governmental organisations (NGOs).
- So, like most non-profit NGOs in the country, it is generally accepted that international foreign funders mainly fund tanks, and this widely held conception is confirmed by the data from our State of the Sector reports.
In fact, over 80% of Mexican policy research organisations receive the majority of their funding from abroad (according to 2023’s SoS). And within that, a handful of large, recognisable donors — USAID among them — have played a central role for decades, offering financial and non-financial support, convening spaces, and, crucially, building credibility and legitimacy.
Now, with USAID gone and other bilateral donors downsizing their grant budgets, a hole has opened beneath many organisations. It’s not just about missing dollars (pesos) — although that in itself is devastating. It’s about the loss of strategic cover. When major international actors withdraw, it sends a message: this space is no longer a priority. For local actors already navigating an increasingly hostile political climate, that message is destabilising.
Think tanks—or, essentially, policy research NGOs—especially those working on issues such as transparency, anti-corruption, or democratic governance, often find themselves in an awkward position. They are not service providers in the classic NGO sense. They don’t hand out food or medicine. Their “product” is data, analysis, and policy recommendations — sometimes critical of the government, sometimes simply inconvenient. This makes their value harder to communicate, and their existence harder to justify, especially in times of economic or political pressure.
The result is a dangerous paradox: the organisations tasked with keeping policy accountable are expected to be independent, influential, and sustainable, while relying almost entirely on the goodwill of external donors, few of whom are anchored in the local context or committed to the long term.
How to respond and adapt?
Think tanks in Mexico can draw on the strategies employed by organisations like CIPPEC and insights from philanthropic representatives, such as the Hewlett Foundation, as shared at the session “The future of international cooperation and its impact on think tanks and evidence-based policy research” during the OTT Conference 2025.
Lesson 1: Diversify! CIPPEC has a strategy of diversification that has helped them move beyond traditional funding sources. As a result, they have more institutional funding from the private sector than from international funding. To achieve this, they develop creative ways of fundraising, such as:
- An annual dinner that serves as a fundraising event, with top supporters and high-level invitees
- Individual donations, especially through the targeting of nationals living abroad
- Objective collaboration with the private sector, developing projects with stakeholders from different perspectives within the same sector.
Lesson 2: Consider fee-for-service models. While perhaps previously less appealing, exploring fee-for-service models can provide new revenue streams.
Lesson 3: Showcase your impact! In a “polycrisis era,” showcasing the impact of policy research organisations is key to their survival. Measuring and showcasing this impact is crucial to maintain organisational relevance and demonstrate effectiveness, especially in environments where resources are scarce. Showcasing meaningful results helps maintain organisational relevance, build trust, and attract new supporters, including private sector actors who are increasingly interested in contributing to visible, lasting change. And in a challenging environment, impact can—and should be—redefined. For example, in rising authoritarian regimes where policy research organisations are no longer available to influence anti-corruption policy, keeping the topic on the public agenda is good enough.
Lesson 4: Develop multi-scenario forecasting. Instead of a single “baseline scenario,” develop multiple scenarios (e.g., a reference scenario, a downside scenario, and an upside scenario) to navigate uncertainty. This involves focusing on future outcomes and narrowing down research to specific, identified areas.
Lesson 5: Be explicit about organisational values. Clearly define and communicate the values cherished by your organisation. When collaborating, ensure there are clear “minimum denominators” of shared values. This helps ensure internal alignment and effective partnerships.
Ultimately, navigating this funding crisis also requires a shift in perspective. Rather than looking solely to the Global North for resources or models, Mexican think tanks should recognise the immense potential and innovation that already exists within the Global South. Across Latin America, Africa, and Asia, many policy research organisations have long operated under conditions of political pressure, financial uncertainty, and shrinking civic space — and have nonetheless found ways to adapt, remain relevant, and drive change. There is deep, often underappreciated expertise in managing uncertainty and building influence in restrictive contexts.
Now is the time to build and strengthen South-South partnerships — to learn from peers who understand the complexity of working in contested environments, and to contribute Mexican perspectives in return. Solidarity, collaboration, and shared learning across the Global South can offer not just survival strategies but powerful tools for resilience, autonomy, and long-term transformation.