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What is Capacity Building?

"Capacity building refers to activities that strengthen a nonprofit organization and help it better fulfill its mission."

Strengthening Nonprofit Performance: A Funder’s Guide to Capacity Building by Paul Connolly and Carol Lukas

The principal objective of capacity building is to improve the quality of decision-making, program efficiency, and managerial performance in the planning and implementation of the organization’s mission.  When this objective is successfully accomplished, the result is more effective organizations, services and programs.

An organization can decide to engage in capacity building for a variety of reasons. Among the most common are:

  • a major change in the external environment

  • a lack of internal ability to address a critical organizational challenge, e.g. financial analysis and management

  • an interest in pursuing an alliance with another organization

  • governance issues

  • leadership transition or support

  • desire to undertake organizational planning

Find more information on Capacity Building through the Resource Links page.

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