Capacity building has been a buzzword in the nonprofit sector for quite some time. Yet many younger nonprofits have no clear understanding of the concept or how to get there.
Capacity building is much more than funding money for general operating support although that’s a means of capacity building of which nonprofits lament its scarcity. There’ve been calls from many quarters in recent years for grantmakers to increase the number and scope of their operating grants.
The National Committee for Responsive Philanthropy (NCRP) has encouraged grantmakers to provide at least 50 percent of grant dollars as general operating funds. More foundations are looking at operating support as an option.
However, a follow-up study last year by the NCRP shows that despite an increase in the amount of dollars given for operating support, it remains at a steady 16 percent of foundations’ share of giving in the 908 large foundations studied. The 2012 study also found that family and private operating foundations increased their level of operating support slightly.
Looking beyond strengthening nonprofits through operating support, there’s an increasing body of knowledge on what makes for robust organization capacity, and much of it is available at no cost. Simply put, capacity building activities focus on strengthening an organization’s internal operating structure rather than solely improving its services delivery or cutting its expenses.
Venture Capital Partners’ Effective Capacity Building in Nonprofit Organizations puts this in sharp focus with its assertion: “Great programs need great organizations behind them.”
If you think your organization needs a better understanding of capacity building, this groundbreaking 2001 study is a great place to start. It suggests seven elements as the cornerstones for building an organization’s “capacity framework:” Aspirations, strategy, organizational skills, human resources, systems and infrastructure, and the organization’s structure and culture.
Extremely helpful real world case studies that highlight each element accompany each of the categories.
A wonderful list of resources on capacity building is available at the Foundation Center website although it’s difficult to locate. See the “Get Started” box on the home page, click on Topical Resources, then under “Management” click on “Capacity Building for Nonprofits.”
The National Council for Nonprofits website also includes a link to some excellent capacity building resources. Click on the “Capacity” icon on their home page.
Much advice is being given and pressure applied to foundations to increase their support of nonprofit capacity building as our understanding of this area increases.
In 2012, Grantmakers for Effective Organizations (GEO) surveyed nonprofits about capacity building and found many said they need help making the case to the philanthropic community for capacity building grants. GEO has identified several grantmaker practices that support nonprofit success. In 2013, this organization will focus its capacity building lens on the use of effective collaboration as a capacity builder.
GEO has excellent information for nonprofits on scaling up effective programs. If you’re looking to expand proven, i.e., results-based programs, regionally or nationally, you may be able to access needed capital and assistance by going to http://www.growthphilanthropy.org/nonprofits.cfm.
Building nonprofit capacity isn’t always about big finances and big projects. As you identify and prioritize your organizational capacity gaps, you can use this to seek nonfinancial support from your corporate partners for help closing the gaps. This could be anything from allowing you to attend a QuickBooks or other relevant training session to having one of their managers provide short-term supervisory coaching for a rising employee.
Sarah Todd is founder and principal of Change Pioneers, an information resource on effective broad-scale change for social good. She can be reached at 912-224-2120 or changepioneers@gmail.com.