Nonprofit Capacity Building: 15 Strategies + Grants

"The Easiest Definition" of Nonprofit Capacity Building

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Nonprofit capacity building is like a company getting investments to grow. It’s about strengthening your organization with tools, skills, and resources—like financial help from grants or donors—to improve areas like staff training, operations, or technology. This helps your nonprofit grow stronger and make a bigger impact over time.

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🤔 Still scratching your head? Imagine this: If your nonprofit were a car, capacity building would be the tune-up it needs to run smoother, faster, and more efficiently. It’s about improving everything behind the scenes, so you can shine where it matters most—helping people and communities.

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Okay, you might be wondering—who actually provides capacity building to nonprofits? Well, it comes from all sorts of places! Specialized consultants, capacity building grants for nonprofits, nonprofit networks, and partnerships all play a role. 

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The goal? To make sure you have the support you need to reach your mission and thrive!

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Types of Capacity Building for Nonprofits 

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In the table below, you'll find an overview of the different types of capacity building for nonprofits . There are different types of capacity building because funding is provided to improve specific areas. Each type needs attention and resources—whether it's funding, training, or technology—to strengthen the organization.

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3 Real-Life Examples of Nonprofit Capacity Building 

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1 - Digital Fundraising Capacity Building

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Funding: The Evelyn and Walter Haas, Jr. Fund offers flexible grants to strengthen digital fundraising for nonprofit organizations.

Training: Through the M3 Initiative (Message, Mobilize, Money), the Fund connects smaller nonprofits to expert consultants, helping them improve donor engagement and fundraising strategies.

Technology: The Fund supports grantees in integrating digital tools, such as social media platforms, to increase their fundraising reach and compete with larger organizations.

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2 - Leveraging Technology for Capacity Building

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Funding: CAHEC worked with Net Friends to upgrade its technology systems and receive ongoing support for infrastructure improvements.

Training: Net Friends provided the organization with training and expert guidance on IT best practices and security measures.

Technology: Through the partnership, CAHEC improved its IT infrastructure and now benefits from around-the-clock support, allowing the organization to focus on broader strategic initiatives.

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3 - Progress with Multi-Year Grants

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Funding: The Wells Fargo Regional Foundation provides multi-year grants to nonprofits focused on community development and long-term social impact.

Training: The Foundation offers resources like consultants, technical assistance, and mapping tools to support the development and sustainability of grantee programs.

Technology: Multi-year grants allow nonprofits to plan and budget for extended periods, using technology to track progress and adjust programs as needed based on community feedback.

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15 Strategies for Nonprofit Capacity Building

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1. Financial Sustainability & Resource Development

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1) Diversify Funding Sources: Build a varied revenue model that includes grants, donations, and earned income streams.

2) Create a Financial Safety Net: Develop a reserve fund to protect against unexpected financial challenges.

3) Demonstrate Impact to Attract Funders: Track and report measurable outcomes to show the effectiveness of your programs to funders.

4) Maximize Donor Engagement: Strengthen relationships with donors by providing transparent reports and showing tangible results.

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Leadership & Governance

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5) Build Strong Leadership Teams: Invest in leadership training and succession planning to ensure a capable leadership team.

6) Strengthen Your Board: Provide ongoing board training and ensure they understand their role in guiding the nonprofit.

7) Promote Advocacy & Thought Leadership: Encourage leadership involvement in advocating for systemic change and positioning your nonprofit as an authority in its field.

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Operations & Technology

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8) Optimize Operational Efficiency: Streamline internal processes with the help of management tools and better project workflows.

9) Adopt Technology for Data Management: Implement software solutions to track donations, manage programs, and improve operational processes.

10) Monitor and Improve Data Security: Strengthen cybersecurity and protect sensitive donor and program data.

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4. Community Engagement & Collaboration

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11) Engage with the Community: Build strong relationships with local stakeholders to better understand their needs and provide valuable services.

12) Develop Strategic Partnerships: Work with other organizations, businesses, and government agencies to amplify your impact and resources.

13) Volunteer Program Growth: Foster a strong volunteer program with well-defined roles, training, and recognition to keep volunteers committed.

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5. Strategic Planning & Growth

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14) Create a Long-Term Strategic Plan: Develop a clear roadmap that defines your nonprofit’s mission, vision, and goals for sustainable growth.

15) Focus on Diversity, Equity, and Inclusion:Ensure that diversity and inclusion are prioritized in your hiring practices, program development, and leadership roles.

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3 Capacity Building Grants for Nonprofits​ 

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1) Louder Than Words Grant Program

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• Grant Amount: US $500 - US $50,000
• Fields of Work: Public Transportation & Mass Transit Systems, Civic Engagement & Education, Diversity, Equity & Inclusion
• Applicant Type: Nonprofit, Government Entity

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Overview:
The Louder Than Words Grant Program is aimed at supporting nonprofit organizations that make a positive impact on diverse and underserved communities. The program focuses on enhancing civic engagement, education, and inclusivity, with an emphasis on addressing disparities in marginalized communities.

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Funding Uses:

• Supports community-driven projects in areas like public transportation, civic education, and promoting diversity.

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Location of Project:

• Nationwide (USA)

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Eligibility:

• Must be a nonprofit with a 501(c)3 status.
• Must serve diverse communities (51% or more participants are people of color).
• Must demonstrate capacity to deliver culturally competent services.
• Projects should focus on alleviating the impact of race-based discrimination.

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2) AARP Community Challenge Grant

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• Grant Amount: US $500 - US $50,000
• Fields of Work: Public Transportation & Mass Transit Systems, Civic Engagement & Education, Diversity, Equity & Inclusion
• Applicant Type: Nonprofit, Government Entity

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Overview:
The AARP Community Challenge Grant supports projects that create more livable communities for people of all ages, with a particular focus on residents aged 50 and older. AARP provides small grants to fund quick-action projects that can improve public spaces, increase mobility options, and promote community well-being.

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Funding Uses:

• Projects that enhance open spaces, parks, and access to amenities
• Initiatives that offer transportation and mobility options for all ages

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Location of Project:

• Nationwide, with a special emphasis on communities in the AARP Network of Age-Friendly States and Communities.

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Eligibility:

• Open to 501(c)(3), 501(c)(4), and 501(c)(6) nonprofits, as well as government entities.
• Other organizations may be considered on a case-by-case basis.
• Fiscal sponsors are allowed for nonprofits.

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3) Stranahan Foundation Early Childhood Education Funding Grant

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• Grant Amount: Up to US $500,000
• Fields of Work: Early Childhood Development, Education - Preschool/Early Learning, Education
• Applicant Type: Nonprofit, College/University, Elementary/Secondary School, Public School District

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Overview:
The Stranahan Foundation supports projects aimed at increasing access to high-quality early care and education for low-income children (birth to five). The Foundation focuses on developing and retaining a thriving, skilled early educator workforce, with a special emphasis on innovation and professional development strategies.

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Funding Uses:

• Projects that advance Innovation and Proven Professional Development strategies for early childhood professionals.
• Initiatives that support the development, piloting, and refining of new approaches to enhance the knowledge and skills of aspiring and existing early childhood educators.

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Location of Project:

• Nationwide (USA)

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Eligibility:

• Open to nonprofit organizations, public school districts, and higher education institutions.
• Must have a commitment to serving early childhood providers whose student populations are at least 60% low-income.
• Applicants must demonstrate collaboration with families, communities, and early childhood professionals.

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How Join It Supports Nonprofit Capacity Building

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• By simplifying membership management, Join It allows nonprofits to reduce time spent on administrative tasks, improving efficiency across the board.
• Nonprofits can easily connect with their members, creating strong communication channels that strengthen community engagement and loyalty.
• Join It’s data-rich features give organizations actionable insights, enabling better decision-making for long-term sustainability.

Ready to enhance your nonprofit’s capabilities? Start with Join It today to optimize your processes and build stronger connections with your community!

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Read more about our blog article =>  What is the Best Software for Nonprofits?

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