Capacity building is not just about the capacity of a nonprofit today -- it's about the nonprofit’s ability to deliver its mission effectively now, and in the future. Capacity building is an investment in the effectiveness and future sustainability of a nonprofit. When capacity building is successful, it strengthens a nonprofit’s ability to fulfill its mission over time, thereby enhancing the nonprofit’s ability to have a positive impact on lives and communities.

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Capacity building is the all-important “infrastructure” that supports and shapes charitable nonprofits into forces for good. Capacity building enables nonprofit organizations and their leaders to develop competencies and skills that can make them more effective and sustainable, thus increasing the potential for charitable nonprofits to enrich lives and solve society’s most intractable problems.

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capacity-building is a measurable improvement in an organization's ability to fulfill its mission through a blend of sound management, strong governance, and dedication to assessing and achieving results.

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Efforts to strengthen: 

Organizational infrastructure

Management and governance

staff capacity

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Helps avoid "mission drift"—a loss of focus on your nonprofit's founding principles.

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Capacity building often involves completing a series of deliberate action steps and using a combination of complementary strategies—such as assessment, strategic planning, information sharing, training, technical assistance, coaching, resource development, and evaluation—that support organizations to achieve current and future goals.

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an ongoing, evidence-informed process used to develop a system's potential to be productive and effective.

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Consider this grid from the Center for Public Skills Training to assess where to target capacity-building efforts:

 

Mission, vision and strategy
Strategic planning
Organizational planning
Accountability
Systems

 

Strategic relationships
Collaboration and strategic restructuring
Marketing and communications

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Governance and leadership
Leadership development
Board development
Succession planning

 

Resource development
Fund development
Business planning for revenue generation

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Service delivery and impact
Program design and development
Outcomes measurement
Program analysis and evaluation

 

Internal operations and management
Human resources management
Financial management
Operations
Technology and information systems
Facility planning
Legal and risk assessment
Volunteer development

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Examples of Capacity Building Projects

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• Strategic Planning for Nonprofits 

• Use of HFL's Incubator Space 

• Provision of tools 

  • Jumpstart Program

  • donor database 

  • educational materials and courses

• identifying a communications strategy

• improving volunteer recruitment

• ensuring thoughtful leadership succession

• updating a nonprofit’s technology

• improving how a nonprofit measures its outcomes

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