What is Capacity Building and Why Your Nonprofit Needs It
We have discussed sustainability here before. An essential path to sustainability for nonprofits is capacity building. Capacity building supports those efforts because it is not just about the capacity of a nonprofit today, but it is about a nonprofit’s ability to deliver on its mission today AND in the future. When your organization undertakes capacity building, you are investing in is the sustainability of your organization.
Some common capacity-building projects, such as implementing a communications strategy, improving volunteer or membership development, securing leadership succession, structuring fundraising strategies, and updating a nonprofit’s technology, all lay a foundation for a nonprofit to build its programming upon. The hallmark of effective capacity building is the strengthening of a nonprofit’s ability to consistently deliver its mission and programming. Building a great capacity is the key step toward a greater goal: the ability to impact more people and communities.
Now for a definition to work with. Capacity building is the act of developing a nonprofit to push it to an improved level of programming, financial health, and organization sophistication, in order to more effectively and consistently drive its mission forward. Capacity building is not a single act, lone effort, or short-term outcome, but rather it is continuous with the purpose of producing a sustainable and effective organizational structure.
A simpler definition? Capacity building is as simple as continuous improvement for future use. One more point: it should be an obligation, undertaken by all organizations. An organization that is satisfied with its capacity to do today’s work is failing its future constituents and failing the trust donors place in them. An organization can spend all of its money on its mission in a week, but then its efforts are over and its vision is likely incomplete. By building capacity, an organization ensures that it can help its community today, tomorrow, and pursue a vision for as long as needed.
Why is Capacity Building Important?
Although it often difficult to see on the surface, capacity building is the infrastructure that allows a nonprofit organization to operate. It dictates what a nonprofit is able to accomplish. Increasing the capacity increases what an organization can accomplish. It isn’t just a matter of financial capacity, but rather it is a conglomeration of features including: fundraising strategies, marketing strategies, organizational structures, and even just the skills and abilities of team members and departments. It is all about building the capacity to accomplish goals into your organization. If your organization cannot accomplish something, say the ability to recruit your target number of members, you can build your capacity to recruit by implementing concrete, stable strategies and structures. This capacity for recruiting members can be developed by improving marketing skills and strategies or training your team with recruiting skills. This helps your staff have the capacity to effectively fundraise over the long term because you have invested in their education.
How Should You Build Capacity?
A number of new strategies for capacity building have developed in previous years as tech and other services become more readily available. Common ways to build capacity include developing more sophisticated diagnostic tools, building and developing teams, ensuring that change management is included and understood; engaging diversity, equity, and inclusion; and developing a robust network with partner organizations.
Don’t know exactly what you are doing when it comes to the capacity building? That’s why we are writing this blog. There are loads of resources available to nonprofits looking to improve their capacity. Let’s take a look at a few.
State and Local Associations
In your state or local community, there are likely associations of nonprofits that would love to have your organization join their ranks. A key focus of these groups is to provide education. One focus of that education is to make a broad array of capacity-building opportunities available to your organization, staff, and board members. Frequent webinars, digital resources, workshops, and conferences are all ways that joining an association can help your organization develop its capacity. Check out what associations are available here.
Consultants and their Resources
Consultants are a great resource to start with. Your first thought may be, “that sounds expensive.” In some cases, it can cost an organization, but connecting with high-quality consultants can deliver a high-return investment in your organization. Additionally, don’t think consultants are hiding all of the secrets under lock and key. Here at NMBL, we love to share our insights through our blogs or webinars. We are committed to building a better nonprofit space and part of that commitment involves sharing high-quality insights. Check out what is available to your organization here or by seeking out help from the professionals on your board.
Looking Forward
The world has changed considerably in the last year or so. Fortunately, the nonprofit industry has reacted well and continued its incredible work with the help of generous supporters and dedicated nonprofit professionals. Now, as we slowly move away from a time of crisis, it is critical that organizations return their focus to capacity building. Great capacity is what allowed nonprofits to run at full power for over a year. It is important that we work to rebuild and improve that capacity-building infrastructure. Additionally, nonprofits have learned so much over the course of the last couple of years. New strategies, new technologies, and new ways of operating have greatly impacted what organizations can do. Implementing these new principles into the capacity-building toolbox of nonprofits is important for developing sustainability and continued stability. The best way to move forward is to continue to grow with our capacity.
Ready to start building your organization’s capacity? At NMBL Strategies, we develop strategies that bring value to nonprofits. Whether it’s change management, fundraising or strategic planning, leadership development, and more, we deliver cutting-edge insights and decades of experience to our clients.
