Do You Have The Capacity?

Capacity building or capacity development has been a buzz word since the 1960’s however in the early 1990’s it was introduced into the non-profit sector and related organizations (Ginsler & Associates Inc.,2005). The Council on Non-Profits defines capacity building as “capacity building is not just about the capacity of a nonprofit today; it's about the nonprofit's ability to deliver on its mission effectively now and in the future. Capacity building is an investment in the effectiveness and future sustainability of a nonprofit." The National Council of Nonprofits defines it as "Capacity building is whatever is needed to bring a nonprofit to the next level of operational, programmatic, financial, or organizational maturity, so it may more effectively and efficiently advance its mission into the future." In short, capacity building refers to any investment that strengthens a nonprofit's ability to achieve its mission effectively, efficiently, and sustainably.

Capacity building is more than funding a program it’s about providing the support and infrastructure needed for the organization to do what it does well. Organizations that have under developed infrastructure have weak internal and financial controls, inadequate technology, lack of staff and leadership development, lack of human resources and fund raising capacity, lack of board governance, and lastly, cannot quantify impact effectively resulting in lost grant opportunities.

As funding sources shift from federal and state funding to larger community and private foundations, these organizations have more flexibility to invest funding that can support the organization’s lack of infrastructure and strengthen long-term initiatives. Such funding can be allocated to provide enhanced accounting and CRM systems, staff and leadership development, governance education, tools to enhance mission impact, and strategic planning. Once the organization can identify and prioritize it’s needs, then seek out sources of funding, the final step is to then find people with talents, knowledge, skills, and expertise in areas in which the organization is deficient.

At Allyent our motto is “we are your financial alley”. The concept is that we are not just an outsourced vendor, we are your nonprofit financial capacity building partner. It is our privilege to come alongside you to provide a financial health assessment, develop accounting procedural policies that will strengthen internal control weaknesses that will lead to sound financial reporting and auditing. We can provide board financial literacy education and financial reporting as well as budget preparation and presentations. ‍Please reach out at Allyentllc.com.

Seeta Rampersaud, MsAc

Founder