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Frequently asked questions (FAQ) about capacity building |
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1. What is capacity building?
2. Why is capacity building important?
3. What types of nonprofits require capacity building?
4. What are the challenges in capacity building?
5. What have donors and funders done so far?
6. What is a capacity building grant and why is it important?
7. Why and how can a company support capacity building?
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| What is capacity building? |
| There are many different definitions to capacity building and ACS defines it as actions that create a positive impact on the organizational capacity and members of the nonprofits and thereby improve the effectiveness of the nonprofits’ impact on the communities they serve. These nonprofits will be able to enhance their ability to work towards their missions. |
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| Why is capacity building important? |
Nonprofits exist to solve the complex social problems of our society and they need to be financed in a way that enables them to develop and maintain their systems and people. As such, they would be able operate in an effective, efficient and sustainable manner and have an enduring and profound impact on the society.
However, often Asian charities tend to hold short-term views and channel most of the funding into community programs to meet their immediate goals while little funding is available for developing, growing and optimizing the organizational operations and staff training and development. |
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| What types of nonprofits require capacity building? |
| All kinds of nonprofits require capacity building as it is an organizational development necessary for them to function effectively, efficiently and be sustainable. |
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| What are the challenges in capacity building? |
Nonprofits play a vital role in improving the quality of life for the millions of disadvantaged in the society by implementing programs. However, too many nonprofits focus on the community programs and keeping the operating costs low instead of building the organizational capacity. On the other hand, funders and donors traditionally tend to favor supporting community programs rather than investing in building a sustainable nonprofit to effectively carry out the programs.
These traditional mindsets have to change in order for nonprofits to achieve sustainable results and the communities to benefit in the long run. |
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| What have donors and funders done so far? |
A growing number of foundations and private sector donors are trying to become more effective at improving the effectiveness of nonprofits although most of them still prefer to underwrite a charity services or programs. But they are beginning to ensure that these nonprofits that run the programs and services are stable and successful as well. Hence, some of them started giving “capacity building grants”.
Some professional services companies provide “pro bono” services to provide free services to assist nonprofits in their operations such as accounting and human resources support but we do not see this as an effective long-term solution. Instead, there is a necessary and strong need for nonprofits to receive training and management consulting and learn from the private sectors in order to perform better and raise their standards. |
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| What is a capacity building grant and why is it important? |
| Capacity building grants are devoted to strengthen the nonprofits management and governance for example, by developing the skills of board and staff members or tightening financial management, drafting strategic plans, or upgrading communications, technology systems. Such grants are often provided by companies and foundations to ensure that the nonprofits they partner or associate with become more stable and successful. |
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| Why and how can a company support capacity building? |
Companies need to be committed and take action to demonstrate their support for nonprofit capacity building to ensure that contributions of funds and resources are being maximized to effect an enduring and positive impact on the communities.
Apart from giving capacity building grants or cash donation, companies should consider making in-kinds contributions (such as discounts to nonprofits, meeting rooms etc) to the nonprofits to expand their resources and contributing their employees’ time and expertise to train the members of the nonprofits to enhance the organizational strategy, skills and capacity instead of focusing merely on the success of the community programs.
Some of the ways companies can support capacity building include:
a) Secondments of employees
b) Senior managers as trustees
c) Donations to the charities
d) Provide facilities and resources: meeting rooms, IT equipment and services, specialist servicing or provision etc. |
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