Capacity Building

What is Capacity Building?
Capacity building refers to efforts made to improve the effectiveness of an organization in achieving its mission and making it sustainable for the future. Rather than directly increasing the number of services provided or individuals served, capacity building activities focus resources on those organizational areas that support and maintain service provision such as the staff, board of directors, financial systems and sources, technology, and more.

The following list provides examples of capacity building activities from the Compassion Capital Fund:

Leadership Development

• Providing staff with professional development and training to enhance skills in service delivery, administration, management, and/or leadership
• Recruiting, developing, and managing volunteers more effectively
• Establishing a board of directors
• Decreasing vacant positions on the board of directors
• Providing formal orientation for new board members
• Keeping minutes and attendance of board meetings
• Expanding the activities of the board of directors
• Recruiting board members with diverse experience
• Developing a board of directors that represents a cross-section of the community and/or that has ties to different constituencies
• Creating plans to understand board responsibilities and improve performance

Organizational Development

• Incorporating as a legally recognized organization
• Obtaining 501(c)(3) status with the IRS
• Creating and adopting a written mission statement
• Creating and adopting a written strategic plan
• Participating in an organizational assessment by an external individual/entity
• Hiring a financial manager to pay bills, make deposits, keep records, etc.
• Getting an audit of its finances/financial records by an external auditor
• Creating formal, written financial management procedures
• Developing or implementing systems to ensure more effective resource allocation and/or organizational financial management
• Implementing a budgeting process
• Increasing the number of volunteer hours in an average week
• Creating written job descriptions for each staff position or job category
• Conducting annual performance reviews for paid and/or volunteer staff
• Increasing computer and/or software proficiency
• Purchasing computers and/or software
• Increasing organizational utilization of the Internet
• Purchasing computer software to keep financial records
• Developing or implementing electronic record-keeping methods

Program Development

• Developing plans to increase the number of clients served and/or the number or scope of services offered to clients
• Developing plans to expand into a new programmatic area
• Developing plans to incorporate a new approach to services
• Developing plans to improve quality/effectiveness
• Developing plans to include a new group of service recipients or geographic area
• Developing or implementing plans to collect more information about clients, including number, characteristics, and/or how they are helped by the program
• Collecting feedback from service recipients
• Conducting formal assessments of the services provided
• Developing or implementing plans to strengthen organizational evaluation

Revenue Development Strategies

• Creating a written fundraising/fund development plan
• Increasing the number of applications for funding submitted and/or approved
• Seeking and/or obtaining funding from new sources
• Hiring a grant/contract writer to train staff to prepare applications for funding
• Identifying and pursuing new sources of government funding, non-government funding, and/or in-kind donations

Community Engagement

• Creating or updating a Web site
• Developing or distributing written materials, such as a brochure or newsletter
• Making presentations to and/or engaging in partnerships with other local faith-based and community groups
• Utilizing public service announcements or paid advertising
• Undertaking activities to better understand the needs in your community or service area (e.g., meeting with constituents, community mapping, needs assessment survey