The UNHCR, the United Nations refugee agency, is facing the greatest challenge it has ever faced. According to the UNHCR's Mid-Year Report from 2025, 117 million people worldwide are forcibly displaced; despite a slight decline in overall numbers, this is one of the highest figures for displaced persons worldwide. At the same time, the withdrawal of support by the Trump administration in early 2025, followed by many other governments, has led to drastic spending cuts. The fact that it is now under a new leadership may be an opportunity for significant change.
Since January 1, the former Kurdish politician and Iraqi president, Barham Salih, has been the new UNHCR head—a surprising choice. He succeeds the respected and highly regarded Italian Filippo Grandi. Salih must now radically rethink how the organization will fulfill its mandate in the future.
Refugee crises rarely have been short-term emergencies. These days, they are certainly not. Rather, they are long-lasting, global challenges, further exacerbated by the climate crisis and political instability. IN such a situtaiton, the budget cuts, necessitated by the US withdrawal have hit particularly hard. Nearly 5,000 UNHCR staff members—almost a quarter of the workforce—have been laid off. An estimated 12 million refugees will no longer have access to direct humanitarian assistance. In South Sudan, 75 percent of shelters for women and girls have now been closed. This means that the most vulnerable people are losing access to safe aid. Laid-off teachers are forcing children into child labor, early marriage, or making them victims of human trafficking.
The Private Sector as a Financial Lifeline
That the situation is not hopeless is also due to the 11 independent national partner organizations in the UNHCR network, including the German UNO-Flüchtlingshilfe. These NGOs mobilize financial support and raise awareness about the global refugee situation.
While other UN organizations, such as UNICEF, began working with national partners at a very early stage, this form of cooperation was first established at UNHCR in 1980 with the founding of the German partner UNO-Flüchtlingshilfe. It has always been important that partners limit themselves purely to fundraising. A separate department within the UNHCR is responsible for the financial development of the partners. There is a lively exchange of information about fundraising income, but targeted cooperation with the UNHCR in the respective countries still does not seem to be desired everywhere.
In 2025, the 11 partner organizations, through fundraising, contributed more than 48 percent of UNHCR's annual private sector income—funds from companies, foundations, and millions of individual donors. Especially at a time when governments are reducing their voluntary contributions, this support is far more than just a financial contribution. UNHCR should no longer view these local partners merely as a source of donations, but rather as an integral part of its work and as a powerful lever for reach and influence.
Incomplete Progress
The UNHCR has already taken steps to adapt its highly hierarchical structure. Through initiatives such as the Grand Bargain (2016) and the Global Compact on Refugees (2018), the organization has committed to stronger partnerships with local actors. Initial progress is evident: In 2024, 87 percent of funded partners were local or national actors, receiving 59 percent of partner funding ($729.4 million). Cooperation with the private sector is also having an impact: Technology companies are supporting the digital registration of refugees, and large corporations are creating employment opportunities.
The network of 11 national partner organizations (Argentina, Australia, Germany, Japan, New Zealand, Portugal, Sweden, Switzerland, Spain, the United Kingdom, and the United States) generates the majority of UNHCR's total annual revenue from the private sector. With up to €100 million annually, the Spanish partner España con ACNUR is regularly among the agency’s largest non-governmental supporters. Francesco Sciacca, the Spanish CEO and spokesperson for all the national partners, has already announced contributions totaling $350 million for 2026. This places several of the national partners among UNHCR’s 20 largest donors worldwide.
Integration Instead of Isolation
Although the financial role of national partners is increasingly recognized, especially during these times of crisis, a "business as usual" mentality still prevails among many staff members in UNHCR offices in donor country capitals. UNHCR offices still often operate in isolation from their national partners. While UNHCR representatives in the capitals of donor countries focus on working directly with governments and politicians, national partners are generally kept separate and reduced by UNHCR to a purely fundraising role.
Yet, national partners offer UNHCR far more than just money. With a total of approximately 1.7 million donors, they are firmly anchored in civil society. Many also have direct access to top politicians and media networks—contacts with which they can support UNHCR offices in capital cities. Furthermore, they possess expertise in fundraising and targeted communication, which is essential for encouraging donations in the respective markets. With these skills, the UNHCR representative offices in the capitals can be directly supported in cooperation with national partners—for example, in press and public relations.
However, UNHCR usually limits the role of its partners to fundraising. Sometimes this is due to unfounded concerns about their expertise, but very often it is due to an isolated way of thinking. The close connection to civil society—an invaluable asset—is thus all too often insufficiently utilized.
Better Communication Attracts Donors
National partners are often faster and more effective than the strictly hierarchical international apparatus. This dynamic can often unsettle the UNHCR bureaucracy and leads to an unnecessary defensive stance. But there is another way: An inclusive approach would recognize the dynamic interaction between civil society, government, and partners.
The reluctance of many UNHCR representatives to communicate with the media, some of whom would prefer not to communicate publicly at all for fear of misunderstandings, is a major weakness. In Germany, this changed a year ago with the arrival of a new UNHCR representative. Communication has improved markedly, as has cooperation with other actors. However, such constructive cooperation must apply to all UNHCR representations, as only national partners are able to mobilize civil societies in a targeted and supportive manner.
Ultimately, only humanitarian organizations that are visible and accessible can prevail in the “competition among the good” against the many other organizations that are also seeking financial support. The urgency of this challenge was demonstrated at the donor conference in Geneva on December 2, 2025: Donor governments responded to the global appeal for 2026 with pledges totaling $1.161 billion. Together with the pledges made by national partners, the UNHCR is starting 2026 with $1.5 billion. That is only 18 percent of the projected needs. Private funds have thus become systemically important.
New Openness as a Matter of Survival
At this critical time, it is essential that High Commissioner Barham Salih can mobilize all possible allies and partners for the benefit of refugees. This requires openness and a willingness to learn within UNHCR to find out how best to work together on an equal footing. Given the rising number of displaced persons worldwide, meaningful cooperation with national partners and the private sector is no longer optional. It is an essential prerequisite for the future success of the UNHCR.
Peter Ruhenstroth-Bauer is a former German government official. From 2017 to 2025, he was managing director of UNO-Flüchtlingshilfe, the German partner of the UNHCR.
