Presents valuable lessons from nonprofit organizations that have engaged successfully in capacity building. Nonprofit managers increasingly are realizing that attention to management practices that will help them build high-performing organizations is equally as important as the delivery of programs and services. Seven elements of nonprofit capacity are highlighted: aspirations, strategy, organizational skills, human resources, systems and infrastructure, organizational structure, and culture. Based on case studies of 13 nonprofit organizations, the report presents a clear framework for defining capacity as well as a tool for measuring an organization’s capacity level. Nonprofit managers learn that: (1) the nonprofits that experienced the greatest gains in capacity were those that undertook a reassessment of their vision and strategy; (2) nonprofits need people in senior positions who are committed to undertaking the initiative to make capacity building happen, including institutionalizing sound management processes and improving systems; and (3) there are few quick fixes when it comes to capacity building. Moreover, because the benefits of building organizational capacity may not be immediately apparent to staff, volunteers, or board members, a nonprofit manager needs to be supported in his or her long-term efforts to help the organization fulfill its aspirations.
