Why Capacity Building Needs to be Your Nonprofit's Next Focus
With the pandemic continuing into 2022, nonprofits still face a variety of challenges. Prominent among these challenges is sourcing funds to continue operating amid the pandemic.
Undoubtedly, your organization has been tackling these issues for a while. You've probably even already come up with solutions to solve them in both the short- and long-term. However, facing external challenges is only part of running a nonprofit. The other part involves internal affairs.
This is where capacity building comes in. This aims to strengthen and further develop your operations, so you continue running smoothly no matter the circumstance. Below we discuss what capacity building is, what it involves, and why it needs to be your nonprofit's next immediate focus.
What is capacity building?
In brief, capacity building improves the resiliency and longevity of your organization by strengthening its internal processes. It can include improving the effectiveness of internal structures, organization management, and staff capabilities.
Say for example that your nonprofit focuses on donating books to far-flung communities. This may require collecting books from donors, conducting inventory, determining which communities need them, and transporting books to their destination. If these activities have been disrupted by pandemic restrictions, capacity-building measures can include utilizing new digital tools.
You can source donations online, have automated software run inventory, create virtual book portfolios for benefiting communities to peruse, and train existing staff on how to use these new technologies. You can even begin including e-books in your programs. Such strategies would not only boost your performance but also improve the reach and relevancy of your nonprofit both during the pandemic and beyond.
What does it involve?
Nonprofits undergoing capacity building first assess their current performance and set realistic and measurable goals to be accomplished in a given time frame. For example, they may give themselves 6 months to improve the flow of operations or upskill employees. From here, they decide how to get the job done.
For example, they may prioritize upskilling staff given emerging technologies, new partnerships, and industry trends. Employee engagement specialist LHH even points out that employees usually request more training from their bosses to develop their careers and pursue more demanding roles. Consequently, nonprofits may work to meet these demands by training them in skills like social media management and content creation, especially if they plan to increase their reach online.
Their management may also be what's holding them back. Do they micromanage or fail to provide and accept feedback? This may point to a need to change management styles. They may try horizontal internal structures that encourage and value employee input, or even join a nonprofit association to avail of leadership training programs. Doing so will have the added value of putting them in touch with other nonprofits, expanding their network significantly.
Why should it be your next focus?
We've previously pointed out that many nonprofits make the mistake of pouring all their funds into programming while neglecting internal issues. This is understandable, as programs are often the most effective means for nonprofits to fulfill their vision.
However, continuing to forego capacity building means you're likely to go without self-assessing your organization's performance. As a result, you'd never know if your nonprofit and its programs are running to their fullest potential. In the worst-case scenario, you risk losing resources to inefficiency over time.
That's why it's so crucial to assess your nonprofit today. It will allow you to improve upon the weak spots you find in your internal operations. For example, you may find that your nonprofit has great programs, but is running them on outdated equipment or facilities with insufficient or unskilled staff.
Resolving internal issues with capacity building will allow you to better and more effectively fulfill your nonprofit's mission while creating a bigger positive impact on those you serve. Essentially, you'll be investing in the future of your nonprofit.
Author: Danna Rowyn
Article written for nmblstrategies.com
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.
