I recently met with a local foundation currently redesigning their community programs to include capacity building grants (also known as organizational effectiveness grants) to enhance the overall effectiveness of area nonprofits. The funder’s goal is to invest in the mission of local nonprofits to help ensure successful delivery of services to local communities and long-term sustainability of organizations. Through capacity building grants, the foundation is leveraging the impact of their philanthropic resources.
Economic challenges and increased competition for dwindling resources is motivating many nonprofits and public agencies to take a closer look at collaboration as a means of ensuring sustainability. Organizations are increasingly leveraging resources by forming partnerships with other agencies. Funders welcome strong collaborative efforts that include joint grant seeking that will result in strengthening organizational effectiveness, expanding reach, and implementing best practices in a cost-effective manner.