Grants are given to build the capacities of nonprofit organizations, and as a result, the communities they serve.  However, most funders need proof of efficient practices before providing dollars, and a detailed plan of how your organization expects to make positive changes with their dollars (i.e. proposals, logic models, budgets).

 

So first, what is Capacity Building?

“Capacity building is whatever is needed to bring a nonprofit to the next level of operational, programmatic, financial, or organizational maturity, so it may more effectively and efficiently advance its mission into the future. Capacity building is not a one-time effort to improve short-term effectiveness, but a continuous improvement strategy toward the creation of a sustainable and effective organization.” ¹

In other words, capacity building is improving anything that helps an organization perform their mission more effectively over time. The types of capacity building that are most valuable to certain grant makers commonly fall under programming or organizational capacities.

 

Here is a core list of different types of capacity building funders and grant makers like to see strength in when providing funding:

---

 

Organizational

Mission and Vision — Strong organizational planning and strategy development, as well as an overall mission of equity should be seen throughout the organization’s work

HR/Leadership — staff and board leadership need a capacity that can support training at all organizational levels and a positive organizational culture

Financial Management — Management needs the financial information organized and readily accessible for discussions with grant makers on programs, budgets, and staffing. The nonprofit’s capacities and systems should be optimized for accurate accounting and financial planning. ²

Programmatic

Program/Service Delivery — The organization should be effective in designing and delivering effective programs that generate results for the community served, using strategic partnerships with other nonprofits or stakeholders that can help advance the mission.

Fund Development — A sound fundraising strategy should be in place for long-term planning on how to gain multiple funding sources and provide lasting community services

Communications— There should be capacity in information systems, marketing, and social media to raise awareness and attract attention and resources to causes and programs.

Evaluation — The nonprofit should be able to gather data, measure impact, and assess outcomes of programs to strengthen the organization’s work over time

 

The ability to tailor capacity building efforts to your organizational needs is simple: find out what the problem areas are by conducting an organizational evaluation. It simplifies the core functions and identifies improvement areas to bring operations up to standard so that grant makers will see the utility of your programs and fund your good work.

 

Alexis Sankey is the Founder of Social Solutions Consulting, a technical assistance firm based in Birmingham, AL that provides program development, evaluation, and training services for nonprofits and community organizations.

---

 

Thank you to Village Creed for featuring this article!

Resources

1. Council of Nonprofits: What is Capacity Building https://www.councilofnonprofits.org/tools-resources/what-capacity-building

2. Social Solutions Consulting: What does a Healthy Nonprofit Look Like? https://socialsolutionsconsulting.org/2019/06/02/what-exactly-does-a-healthy-nonprofit-look-like