Although the funding landscape has changed, our purpose has not.
In a season of global philanthropic contraction, Namibia's One Economy Foundation has made the difficult choice to reduce its workforce by nearly a third — eliminating twelve permanent positions — rather than allow funding pressures to erode the services it provides to young people. The decision, prompted by a major donor's reduced contribution, reflects a tension felt by nonprofits worldwide: how to preserve purpose when the resources sustaining it quietly recede. What emerges from the foundation's response is not a story of collapse, but of an organization choosing its commitments carefully and tending to those it must let go.
- A major donor's funding reduction has forced One Economy Foundation to cut 32% of its staff and shrink its operating budget by a quarter, exposing the fragility of mission-driven organizations in a tightening global philanthropic climate.
- Twelve permanent employees now face an uncertain transition, even as the foundation works to soften the blow with psychosocial support, financial assistance, and a three-month exit period before their departures take effect.
- Core youth services — mobile outreach, clinical psychology, STEM education, and after-school programs — have been ring-fenced, but advocacy events will shrink and expansion into new communities has been put on hold.
- The foundation is racing to diversify its income through new donor partnerships, campus space rentals, and an annual gala dinner, while a 5% stake in Bannerman Energy offers a longer-term financial lifeline expected to yield dividends only by 2031.
- Leadership has chosen radical transparency — notifying affected staff immediately and communicating directly with donors — framing the restructuring as a financial necessity rather than a verdict on anyone's performance or worth.
The One Economy Foundation announced this week that it is cutting its operating budget by 25% and eliminating twelve permanent positions from a staff of thirty-seven, after one of its largest donors reduced its financial support. Executive Director Pauline Thomas Kahupi described the broader context as a global contraction in philanthropic funding affecting nonprofits across sectors, and framed the donor's approach as deliberate and protective — structured in a way that shielded the foundation's core programs and the young people they serve.
Faced with a choice between maintaining its full payroll and protecting its frontline work, the foundation chose its programs. The twelve affected staff will not be cut immediately; instead, they will receive a three-month exit period supported by psychosocial care, financial wellbeing services, and career transition assistance. Kahupi was clear that the restructuring reflects financial realities alone, not the performance of those affected, and that departing employees will be prioritized for any future openings.
Some activities will contract. Advocacy events will be scaled back and expansion into new communities delayed. But the mobile outreach vans, clinical psychology and social work services, STEM initiatives, and after-school programs will continue. Fewer new beneficiaries will be reached, Kahupi acknowledged, though the quality of care for those already served will not diminish.
To stabilize its finances, the foundation is pursuing new donor relationships, renting facilities at its #BeFree Campus, and preparing for its annual fundraising gala in October. It also holds a 5% stake in Bannerman Energy Ltd, expected to generate dividend income around 2031 — a long-term buffer, Kahupi stressed, not a replacement for donor support. Throughout the process, she emphasized transparency with staff, donors, and the public alike: the funding landscape has shifted, but the foundation's purpose, she said, has not.
The One Economy Foundation announced this week that it is cutting its operating budget by a quarter and laying off nearly a third of its workforce—twelve permanent positions eliminated from a staff of thirty-seven—after one of its largest donors reduced funding to the organization. The cuts reflect a broader contraction in philanthropic support hitting nonprofits globally, according to Pauline Thomas Kahupi, the foundation's Executive Director.
Kahupi framed the donor's decision as measured and deliberate. The funder, she said, reduced support in a way that shielded the core programs it had been financing and the young people those programs serve. "This is an indication of the trust they have in One Economy Foundation," Kahupi said, describing the move as a sign of confidence rather than abandonment. The foundation, which serves youth across Namibia with services ranging from skills training and entrepreneurship support to mental health care and sexual and reproductive health awareness, faced a choice: protect its frontline work or maintain its full payroll. It chose the former.
The twelve affected employees will not face immediate termination. The foundation is offering a three-month exit window, during which departing staff will receive psychosocial support, financial wellbeing assistance, and career transition services. Those laid off will be considered for future openings within the organization before external candidates are considered. Kahupi was explicit that the cuts reflect financial necessity, not performance: "The decision to restructure roles is not a reflection of the performance or commitment of the affected individuals and is based solely on financial realities."
Some programs will shrink or pause. The foundation is scaling back advocacy-focused events and delaying expansion into new communities. The mobile outreach vans—a central part of how the organization reaches young people—will continue operating. So will the clinical psychology and social work services, the STEM education initiatives, and the after-school programs. Kahupi acknowledged that fewer new beneficiaries will be reached, but said service quality for those already served will not diminish.
The foundation is pursuing multiple paths to stabilize its finances. It is actively seeking new donor partnerships and deepening relationships with existing supporters. It is also generating revenue by renting out spaces at its #BeFree Campus—a multipurpose hall, industrial kitchen, boardroom, and offices—to outside organizations. In October, the foundation will hold its annual fundraising gala dinner, an event Kahupi described as essential to securing unrestricted funding. The organization also holds a 5% stake in Bannerman Energy Ltd, which is expected to pay dividends beginning around 2031, though Kahupi cautioned this is not meant to replace donor support but to strengthen long-term financial stability.
Kahupi emphasized transparency throughout the process. Affected staff learned of the cuts immediately upon decision. Donors and stakeholders were informed directly about what changed, what remained protected, and what the foundation is doing to adapt. "Although the funding landscape has changed, our purpose has not," she said. The foundation remains committed to creating opportunities for young people and improving their wellbeing, she added, expressing confidence that strong partnerships and community support will sustain the organization's work in the years ahead.
Notable Quotes
The decision to restructure roles is not a reflection of the performance or commitment of the affected individuals and is based solely on financial realities.— Pauline Thomas Kahupi, Executive Director
Although the funding landscape has changed, our purpose has not. One Economy Foundation remains committed to creating opportunities, improving wellbeing, and helping young people build better futures.— Pauline Thomas Kahupi, Executive Director
The Hearth Conversation Another angle on the story
When a major donor pulls back like this, how much of it is really about the foundation's work versus broader economic headwinds?
Kahupi was clear that this reflects what's happening across the nonprofit sector globally—donors are tightening everywhere. But she also made a point of saying the donor did this responsibly, protecting the programs they'd funded. That suggests some confidence in the foundation itself, even as the donor's own capacity shrinks.
Twelve people losing their jobs is significant. How does the foundation justify protecting programs over payroll?
The logic is that the foundation exists to serve young people—that's the mission. If you keep full staff but cut services, you've failed at your core purpose. The three-month exit period and support services are an attempt to soften the blow, but you're right that it's still a hard choice.
The dividend income from Bannerman Energy doesn't arrive until 2031. That's five years away. What happens in the meantime?
That's the real pressure point. The foundation is betting on new donors, on the gala dinner, on renting out campus spaces. Those are all interim measures. If none of them generate enough, the foundation could face another round of cuts before that dividend arrives.
Does Kahupi sound worried?
Not worried exactly—more determined. She's being transparent about constraints while insisting the foundation will survive and continue its work. Whether that confidence is warranted depends on whether those new funding sources materialize.