ObjectiveWe evaluate the debate concerning the impact of collective nongovernmental organization payment for ecosystem services on forest loss in low‐ and middle‐income nations.MethodsWe analyze data for a sample of 79 low‐ and middle‐income nations using a two‐stage least squares regression model to address endogeneity on the payment for ecosystem services variable.ResultsWe find that collective nongovernmental organization led payment for ecosystem services programs correspond to less forest loss in low‐ and middle‐income nations. We also find that agricultural exports, agricultural land area, total population growth, rural population growth, and urban population growth are related to increased forest loss.ConclusionWe conclude that nongovernmental organizations can cooperate with Indigenous populations in low‐ and middle‐income nations to protect forests by using payment for ecosystem services programs.