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4 minute read
Understanding capacity building in grantmaking and philanthropy
Capacity building refers to activities that improve an organization’s ability to achieve its mission and sustain itself over time. In the context of grantmaking and philanthropy, capacity building involves providing nonprofits with the tools, resources, and support they need to enhance their operational, programmatic, and organizational effectiveness. This can encompass a wide range of activities, including leadership development, strategic planning, technology upgrades, staff training, and improving governance structures.
For nonprofits, capacity building means investing in their infrastructure, so they can deliver programs more effectively, adapt to changing circumstances, and grow sustainably. It’s about ensuring that these organizations have the internal capabilities and resources to thrive and make a lasting impact on the communities they serve.
The importance of capacity building for nonprofits
Capacity building is crucial for several reasons. Firstly, it helps nonprofits become more resilient and adaptable. In an ever-changing environment, organizations that have robust internal systems and skilled staff are better equipped to navigate challenges and seize opportunities. Secondly, capacity building enhances the effectiveness and efficiency of nonprofits. With better trained staff, improved technology, and sound governance, organizations can deliver higher quality programs and services to their communities.
Capacity building fosters sustainability. Nonprofits that invest in their internal capacities are more likely to achieve long-term success and make a greater impact over time. They are better positioned to secure diverse funding sources, manage resources efficiently, and demonstrate their value to stakeholders.
Capacity building examples in action
To illustrate the impact of capacity building, here are a few examples:
Building community capacity through capacity building resources
Investing in capacity building resources and support is a powerful way to build community capacity. When grantmakers and philanthropists prioritize capacity building for nonprofits, they are essentially investing in the long-term health and sustainability of these organizations. This, in turn, leads to better community outcomes in various domains such as health, education, and housing.
Health outcomes
By supporting capacity building in health-focused nonprofits, grantmakers can help improve community health outcomes. For example, a foundation might fund training programs for healthcare workers, enabling them to provide higher quality care. Additionally, investing in technology for health nonprofits can improve data collection and analysis, leading to more effective health interventions and policies.Why capacity building is better than traditional grants
While traditional grants are crucial for supporting specific programs and initiatives, capacity building grants for nonprofits offer several unique advantages. Traditional grants often come with restrictions on how the funds can be used, limiting nonprofits' ability to address their broader organizational capacity building needs. In contrast, capacity building grants provide the flexibility to strengthen internal systems and processes, leading to more sustainable and impactful organizations.
Capacity building grants for nonprofit organizations also promote long-term success. By investing in an organization’s internal capacities, grantmakers help ensure that nonprofits can continue to thrive and make a difference well beyond the grant period. This long-term perspective is essential for addressing complex social issues that require sustained efforts and solutions.
By focusing on capacity building, grantmakers and philanthropists can ensure that nonprofits are well-equipped to fulfill their missions and create positive, sustainable change in their communities. Supporting capacity building is not just about strengthening individual organizations; it’s about building stronger, more resilient communities that can thrive in the face of challenges and opportunities alike.
Catchafire’s role in building capacity support
At Catchafire, we understand the importance of capacity building for nonprofits and communities. Our capacity building program is designed to provide nonprofits with the support they need to enhance their capacities through volunteer engagement. Volunteers play a critical role in providing capacity building resources by offering their skills, expertise, and time to support various organizational needs.
Volunteers on Catchafire provide critical support in areas such as IT, finance, marketing, and strategic planning, strengthening the sustainability and resiliency of nonprofits. By connecting nonprofits with skilled volunteers, our platform helps build the internal capacities of these organizations, enabling them to deliver better services and achieve greater impact.
For example, Catchafire has been a game changer for Saahas for Cause. Saahas was Cause was initially a declined grantee in a round of Archstone Foundation's Capacity Building RFP. Instead of a grant, they were given access to Catchafire.
Since 2021, Saahas for Cause has sourced volunteer support to complete 54 projects on Catchafire, with an impact of over $190,000. They received support on projects ranging from marketing materials to tech support to finance calls. This strengthened their operations and programming, putting them on a pathway to grant readiness. As a result, when they reapplied to Archstone Foundation’s RFP, they were one of the applications that rose to the top. The nonprofit was able to receive funding for their technology projects, allowing them to invest in their CRM and training their staff.
“I realize now that I would rather take Catchafire over a grant. The projects that I have gotten done have resulted in much more value in comparison to that grant.”
Payal Sawhney
Founding Executive Director, Sahaas for Cause
