Blogs tagged with Financial Capacity Building

  • Peter Kim, The Bridgespan Group and Heather Peeler, Grantmakers for Effective Organizations
    Posted: July 29, 2014

    It’s hard for nonprofits to raise money for their day-to-day work. It’s even harder to raise money to grow their impact.

    Funders and nonprofit leaders tend to focus on programs and expansion plans. That’s the sexy stuff that attracts support. Too few invest adequately in building the organizational capacity needed to lay the tracks for future growth—what Bridgespan’s Paul Carttar calls the “unsexy” side of scaling.

    What explains this dilemma? Many nonprofit leaders find it hard to be forthcoming with funders about what their organizations really need to execute a growth strategy—whether it’s leadership development, IT support, financial management, or performance measurement. By and large, grantmakers do not provide support that adequately addresses those needs.

    This disconnect shaped a key takeaway from the panel on Capacity Building for Sustainability at the recent Social Impact Exchange Conference: most nonprofits can’t invest enough in the organizational capacity they need to stay ahead of their own growth curve. In short, great programs may flourish, but the organizations behind them fail to keep up—an unsustainable mismatch. What will it take to ensure organizations are prepared to take programs to scale?