Beyond the grant: how funders can invest in nonprofit capacity

Many nonprofit organizations face ongoing concerns about teams being stretched thin as they juggle multiple roles within a small staff. More and more, nonprofit staff are expected to complete lengthy to-do lists – some of which may be beyond their skill sets. These nonprofits, especially smaller organizations doing work on the ground, may not have the resources to hire a dedicated communications or marketing staff member, so development or program staff often do double duty, typically learning these skills on the fly.

Financial support in the form of grants is crucial to nonprofits, but their needs are often broader than a one-time or even recurring investment — especially if it comes with significant restrictions. Organizations may also be limited in how much they can receive from funders and how long they can remain in a grantee program, depending on the funder.

As we see more grantmaking organizations moving toward the ideas of trust-based philanthropy and participatory grantmaking practices, it’s encouraging to see donors and funders wanting to do more that directly contributes to the overall success of nonprofits and their communities. Capacity building is an opportunity to ensure that grantees are set up for long-term success, providing tools and ideas that nonprofit staff can use to bolster the funding they receive. If funders truly want to challenge traditional power dynamics and drive transformational change, there are a few key practices to center on.  

First and foremost, approach with trust and consideration. 

Capacity-building is only as useful as the honesty behind the feedback your grantees share. While community-centered listening practices are foundational for building a stronger understanding of your grantees, nonprofit staff may feel uncomfortable sharing vulnerabilities or areas where they need support with a funder, fearing it will risk their funding. Be clear that sharing this information will not impact their funding, and build this trust further by incorporating confidentiality or anonymity into any research you conduct, to the extent possible. 

Ask what you can offer.

Don’t make assumptions as to what is best to offer grantees! It’s important to listen and get a sense of their needs before launching or expanding your capacity-building program. Conduct audience research by circulating a survey or conducting interviews, asking what areas your grantees are most interested in receiving support for and the formats in which they’d like to receive them. You can also request anecdotes from program officers who work closely with grantees to get a fuller understanding of what would be valuable. 

Ask your grantees what areas they face the biggest barriers to focusing on their mission. For example, development staff may benefit from focused communications and fundraising skills such as how to communicate their nonprofit’s mission and overall impact in ways that resonate with their key audiences.

Connect grantees with training, coaching, and access to broader resources.

Trainings and workshops run by marketing, communications, and fundraising experts are just one area that offer a helpful starting point for grantees with limited staff. Partnering with communications and development professionals can help funders provide grantees with access to resources and assessments that would otherwise be cost-prohibitive.

Topics such as building skills in brand strategy and messaging, strategic communications planning, digital fundraising campaigns, donor communications, and storytelling can help nonprofits invest in their teams — and in their mission — in ways they may not otherwise be able to. If your grantee organizations are local, you may consider a mix of in-person and virtual workshops to ensure equitable access and help build community and peer learning. One-on-one or small-group coaching sessions also allow for more individualized access to expertise or assessment. For a more flexible approach, funders can request large-group training for individuals from multiple grantee organizations, followed by one or more coaching sessions on the same topic later. 

Alternatively, foundations and other grantmaking organizations might opt to provide training to nonprofits that may not yet be grantees — either to prepare for entry into a grantee program or because the grantmaker is unable to provide a grant but still wants to support.

Highlight the results and share key success metrics.

Whatever you decide to offer – remember that it’s only as effective as how it’s received by your grantees. It’s important to measure grantee satisfaction with your capacity-building offerings, just as you would measure the results for any communications or marketing tactics. Invite a mix of questions in a post-training or coaching survey that can answer how valuable your grantees found it. And don’t discount the importance of qualitative feedback from your grantees both in and outside the survey! You may be able to surface themes in survey feedback that help guide how you refine or expand capacity-building offerings for grantees in the future.

If your foundation or grantmaking organization is interested in launching or expanding a capacity-building initiative for grantees, start by asking: 

• What’s working well with our current approach, and where can we do more? 
• What do our grantees need? How can we best support them?
• What types of capacity-building can we provide (formats, topics, trainings, coaching, assessments, etc.)? 
• How will we strive for equitable access among our current or potential grantee community?

Remember that your capacity-building program doesn’t need to be expensive at the outset to make a difference for your grantee partners.

Interested in working with Big Duck to create or enhance your capacity-building program? Contact us to learn more about how we can tailor trainings, workshops, coaching, or assessments to your budget and grantee needs.