Since 1991, Western bilateral and multilateral democracy promotion assistance, especially for civil society development, has increased dramatically. Much of the literature that assesses the impact of this assistance has focused on either direct recipients in civil society or macro transformations, with minimal systematic analysis of how developments in civil society unfold. This article argues that political settlements shape the impact of Western civil society building initiatives. The inclusivity of political settlements can determine who receives funding and who does not and also influences the representativeness of political institutions. In contexts with noninclusive political settlements, where certain groups are excluded from the settlement and the settlement enjoys minimal support, democracy promotion efforts are more likely to exacerbate polarization, thereby weakening the quality of civil society. Examining the women’s sector of civil society in the Palestinian territories and El Salvador, this article illustrates the primacy of political settlements and the limitations of civil society building in contexts where certain actors are excluded from the onset.