This document discusses strategies for non-profits to build capacity and infrastructure through fundraising efforts. It defines capacity building as developing an organization's core skills and infrastructure as the underlying systems. Effective strategies include accurately allocating overhead costs, securing grants for general operating support, and accessing technical assistance. Funders prefer to support stable organizations with leadership that understands capacity needs and has a clear plan. Assessing factors like adequate fundraising staff, communication between departments, and data analysis capabilities helps determine an organization's current capacity and steps needed for growth. Building infrastructure allows organizations to increase sustainability and leverage existing capacity for strategic planning.

1. FUNDRAISING EFFORTS TO
BUILD AND MEASURE
CAPACITY AND INFRASTRUCTURE
2013
Ernest Lewis III, Fundraising Professional
ARE WE THERE YET?

2. Ice Breaker
Which picture best describes your agency’s progress
on building capacity and infrastructure through
fundraising?

3. Understanding Capacity Building and
Infrastructure
 According to the California Wellness Foundation,
capacity building is the development of an
organization’s core skills and capabilities, in order to
build effectiveness and sustainability (www.tcwf.org)
 According to Merriam – Webster, infrastructure is
the underlying foundation or basic framework for a
system or organization (www.merriam-webster.com)

4. Framework Assessment
(Devita & Fleming, 2001)

5. Framework in Action
(Devita & Fleming, 2001)
 Organizational assessment
 Strategic planning,
business plan, fundraising,
financial planning and
governance
i. Change Management
 Champions – hiring
consultants or experts in
the field
 Resource matching or
leveraging
 Establish evaluation
metrics illustrating impact
and effectiveness
 Understanding the three
levels of outcomes–
i. Program/funding outputs
ii. Organizational outcomes
iii. Mission Impact

6. The Challenge
(Hubbard & Light, Unknown)
 STARVATION CYCLE
occurs:
i. When nonprofit leaders
and fundraisers
understand the need for
strong organizational
capacity and are
challenged with securing
adequate funding
ii. Possible Risk:
Reallocation of direct
assistance funds to cover
overhead or capacity
needs

7. The Challenge (continued)
(Hubbard & Light, Unknown)
 Resources for capacity
building and
infrastructure (i.e.
general operating,
support, personnel,
consulting fees and
databases) are fewer.
 The available resources
have strict requirements
often leading
organizations to
overpromise or
underperform.

8. Key Strategies
(Silloway, 2010)
 Strategy One: Build
Accurate Overhead Rates
into Contracts and Grants
i. Develop updated costs
allocation
ii. Report fundraising and
other overhead costs
accurately
iii. Communicate needs with
funders
 Strategy Two: Access
Funding to Directly
Support Capacity Building
i. Contingency Planning
(earmarking memorials
or bequests for capacity
building efforts)
ii. Accessing Federal, State,
and Local Funds
iii. Secure grants for
general operating
support
iv. Launch social enterprise
or revamp operations

9. Key Strategies (continued)
(Silloway, 2010)
 Strategy Three:
i. Access technical
assistance to support
or improve
organizational
capacity and
infrastructure
ii. Examples are data
management/
reporting, board
development and
volunteer recruitment

10. What Funders are Looking for
(Silloway, 2010)
 Funders support successful and
healthy organizations because it
is a good return on their
investment
 A recent study offered the
following criteria funders use to
determine if organizations are in
the position to take advantage
of capacity and infrastructure
building grants:
i. Board of Directors and staff
leadership understand and
support change management
and will remain engaged in
process
ii. Organization is not in crisis
and has stable funding and
staffing to implement capacity
and infrastructure building
resources
iii. Organizational leadership has
a clear understanding of the
organization’s needs and
future priorities, a plan to
strengthen capacity and
infrastructure and a strong
and effective action plan for
change management

11. Assessing Fundraising Capacity and Infrastructure
(Silloway, 2010)
 According to Shirley Trauger, Vice President
of Schultz & Williams Consulting, key
elements to assess include:
Personnel
i. Having fulltime development staff
“who makes fundraising happen”
ii. Fundraising goals and staff levels
must be aligned to reach goals
iii. Are jobs and roles clearly defined?
iv. Are the right people in the right
roles? A new trend is recruiting
candidates with sales experience
v. Are staff equipped and trained to
achieve the fund development
targets outlined in plan
Communication/Collaboration/Trends
i. Ongoing communication with
development staff and
departments; CEO and
Development VP or Director
i. Development and accounting
departments work closely
together
ii. Adequate donor software to
store, manage and produce
data reports
iii. Ability to use data analysis for
trends to make decisions and
planning purposes
iv. Ability to adapt to emerging
needs, trends, and requirements

12. Building Capacity and Infrastructure for Growth
(Tweeten, 2010)
 Explore opportunities that
will increase organizational
sustainability
 Leverage capacity and
make changes when
necessary
 Leadership and
stakeholders should
consider the following
assessment questions:
i. Does our current
capacity match our
strategic or business
plan expectations?
ii. What steps are
needed to determine
our capacity and
infrastructure?
iii. What steps would we
take to build capacity
and infrastructure?

13. THANK YOU
Please share your thoughts.

14. References
 Devita, C. J. & Fleming, C.
(2001). Building Nonprofit
Capacity. The Urban
Institute, Pg.17
 Hubbard, T. E. & Light, C.
P. (Unknown). The Capacity
Building Challenge. Practice
Matters : The Improving
Philanthropy Project, Pgs.
6-8
 Silloway, T. (2010). Building
Capacity for Better Results:
Strategies for Financing
and Sustaining the
Organizational Capacity of
Youth-Serving Programs.
The Finance Project
 Tweeten, B. (2010).
Capacity Building for
Growth. Growth Design
Corporation