First in a series of blog posts about the Coordinated Capacity Building Initiative.
Several developments over the last few years – COVID-19, political divisiveness, the racial justice reckoning, economic uncertainty, and a challenging employment market – have had a profound impact on the nonprofit sector. These shifts have reshaped how nonprofits operate–and how funders can support them effectively.
In response, area funders sought a conversation with nonprofit leaders about how best to support them in evolving their practices and strengthening their organizations. In January 2024, Philanthropy Network Greater Philadelphia co-hosted a convening to share insights from The Pew Charitable Trusts and the Foundation for Delaware County. ImpactED also offered data from its ongoing work with grantees of the William Penn Foundation.
The primary focus of these conversations was to understand evolving capacity building needs, yet a question that surfaced through each of the engagement efforts was, "How are funders who support nonprofit capacity building coordinating with one another?" One funder’s internal summary described grantees’ experience of the sector as “siloed, challenging to navigate, and suffering from the absence of a hub for nonprofit resources, information, and sector advocacy.” Similarly, a grantee of a different foundation questioned how often funders in the region confer with one another, calling for more “cross-pollination.”
With these initial findings in mind, a group of Greater Philadelphia grantmakers formed the Coordinated Capacity Building Initiative to explore how to support local nonprofits in a collaborative, accessible, and equitable way. This year-long effort involves three phases: (1) research about the five-county Greater Philadelphia capacity building ecosystem; (2) creating a strategy for how funders might better support capacity building in a coordinated way; and (3) an action plan for implementing steps developed during phase two.
The initiative’s key goals are to:
- Build shared knowledge of capacity building efforts across the five-county region and conduct research to surface opportunities for collective investment.
- Generate a shared vision and cohesive strategy for how funders can work together to ensure that their resources do more to enhance the impact of nonprofits in the region.
- Commit to actions that enhance the work of nonprofits by reducing barriers and addressing inequities.
Initial Learning From the Process
The first phase of the initiative engaged nonprofits, capacity building providers, and funders in additional research through the summer and fall of 2024. Some initial insights are shared below. [To learn more, read the full report here.]
As a starting point, stakeholders were asked to comment on a working definition of “capacity building” (for details, see pages 7-8 of the report).
While the majority found the definition mostly or somewhat aligned with their thinking, a number noted that it did not fully encompass a community-centered, equitable approach. Several suggested focusing more on strength-based and human-centered language, as well as broadening beyond a “service” frame to better reflect the impact of the work.
While participants had varied ideas about what a more coordinated effort might look like, all were curious about how increased collaboration might help leverage limited resources to create a stronger nonprofit ecosystem. Three consistent themes emerged from the initial research:
► Equity and access: Most funders limit their support for capacity building to existing grantees which tends to reinforce historical inequities.
♦ A coordinated approach could free up some resources to expand access to capacity building opportunities.
“If you’re doing some similar things, why not join up? I’m seeing the same people in
different capacity building groups and it reinforces the question of
who has access.” –Nonprofit Leader
► Long-term support: Nonprofit staff shared that “one off”capacity building efforts often fall short and that ongoing flexible support is needed to sustain and build upon learning.
♦ A coordinated approach could help provide long-term support that responds to shifting circumstances, recognizes and builds
upon successes, and connects nonprofits to a broader range of resources.
“The kind of impact funders are often seeking does not come to fruition until
many years or decades after the grant has been given. We need much bigger
dollars being invested in Philadelphia and more patient
funding spread across 5-10 years.”–Capacity Building Provider
► Duplication and confusion: Nonprofit leaders are often confused about where to go for capacity building support and what is available.
♦ A coordinated approach could reduce this burden and provide greater clarity on options and access points leading to less
duplication of efforts and greater impact.
“Make sure people know what is available–I find out about
things that are offered but didn’t know it was available.”–Nonprofit Leader
Participating funders identified other potential benefits of more coordination, including:
- Drawing more national resources to the region.
- Leveraging funders’ and capacity building providers’ unique skills and strengths.
- Providing an entry point for funders new to capacity building.
Not surprisingly, power dynamics was a major theme of discussion among stakeholders. Nonprofits shared that they often feel compelled to participate in programming–even when a funder tells them it is not required–in order to maintain a good relationship with the funder. They also noted that capacity building offerings are often not in alignment with their needs and that funders don’t always ask what nonprofits themselves would prioritize.
Nonprofits, capacity building providers, and funders would all like to see a change in power dynamics, including more co-creation and the implementation of trust-based practices. While some funders are newer to these approaches, others have been working to shift power and advance equity in philanthropy over many years. This initial phase of the initiative provided opportunities for participating funders to engage each other in conversations about power, equity, and evolving practices.
What Comes Next
The second stage of the initiative will delve deeper into the definition and impact of capacity building–and into the exact shape and possible benefits of greater coordination.
A coordinated approach to capacity building could take many different forms, from exchanging ideas and building awareness to coordinating funding to creating a new initiative. Future dialogue will lift up lessons from national case studies like AMPT and Triangle Capacity Building Network, as well as regional efforts like the Nonprofit Repositioning Fund, Vision Philadelphia, the Wellness Fund, and the Center for Leadership Equity at United Way GPSNJ.
The equitable capacity building principles outlined by GEO will likely be critical to the task of building a more coordinated approach, looking at how funders can intentionally:
- Account for context.
- Provide continuous support.
- Integrate a systems perspective.
- Incorporate collective approaches.
Throughout the first phase of this initiative, all three stakeholder groups–nonprofits, funders, capacity building providers alike–expressed support for continuing and broadening the conversation while still pressing for dialogue that leads to action. The second phase of work will place particular emphasis on centering the experience of nonprofits and provide an opportunity to engage even more partners from across the region who can contribute useful experiences and perspectives.
Stay tuned for details about a convening in early 2025. If you’re interested in staying or getting involved, please share your information here.
In the meantime, you can learn more about the Coordinated Capacity Building Initiative here.
This blog was written by members of the core consulting team for the Coordinated Capacity Building Initiative, which includes ImpactED, GLE, Yoder Consultancy, and Poling Consulting.