Driven by concerns to demonstrate ‘value for money’, bilateral donors and major Northern development agencies are becoming more selective in the types of organisations and activities they will fund and the types of account keeping they demand from recipients. New requirements are forcing small non-governmental organisations (NGOs) in developing countries to change the way they work. They might be becoming more efficient, but are they also losing their ability to respond to the needs of the communities they serve? Research from McGill University and the University of Natal examines the influence of donors on South African NGOs.