The document discusses the Capacity Assessment Tool, which is used to evaluate an organization's capacity in seven critical areas: strategic planning, management/leadership, board development, human resources, fund development, financial management, and marketing and communications. It provides details on each of the seven areas and what attributes and practices signify strong capacity. It also addresses considerations for organizations with social enterprises to ensure the enterprise supports the social mission through adequate planning, budgeting, business systems, and staffing.

1. The Capacity
Assessment Tool

2. Capacity Assessment
• Useful tool to help you focus a discussion about the
resources and practices your organization already has
and those it will need to accomplish its goals
• It will help you decide which attributes, resources or
practices are most critical to accomplishing your goals
• Primarily a learning tool

3. Capacity Assessment
Seven critical areas of capacity that are at the
foundation of healthy organizations:
1. Strategic Planning
2. Management/Leadership
3. Board Development
4. Human Resources
5. Fund Development
6. Financial Management
7. Marketing and Communications

4. Strategic Planning
• Developed by a representative group of the organization’s key
decision makers
• Articulates how the organization’s mission is expressed in its
programs
• Links to budget, program plans, timelines, and accountabilities
• Realistically forecasts the time required to build new programs
• Addresses anticipated changes in revenue
• Reflects the current conditions of the social issue being addressed
• Addresses the needs of all the stakeholders
• Performance measurement and evaluation are linked to the strategic
plan

5. Management/Leadership
• Entrepreneurial, opportunistic and leverage-seeking
• Networked, allied, and influential in the social issue
being addressed
• Organizational structure decision making supports
strategy
• Understanding of the plans, goals and objectives
between board and management
• Management and board is adequate to address
fundraising goals
• Strong management team not just strong ED
• Succession plan

6. Board Development
• Able to attract talented board resources
• Board roles and expectations are made clear
• Participates, supports and is accountable for the
strategic planning
• Board works well with management from clear roles
• Board monitors progress and acts effectively to re-
evaluate and adjust as conditions change
• Board composition is sufficient to accomplish stated
goals
• Meeting schedule matches your business cycle

7. Human Resources
• Able to attract talented staff in a timely manner
• There is adequate, experienced staff
• HR policies require staff to be regularly evaluated and
rewarded
• Up-to-date job descriptions and goals and objectives
• Wages are sufficient to attract and retain key managers
• Management and staff are committed to professional dev
• Budget includes a reasonable expenditure for regular
professional development
• Able to forecast emerging human resources needs

8. Fund Development
• Funding is diversified and from multiple sources
• Well-documented donor management system
• Well-developed internal fundraising skills
• Well-developed systems for long-term planning
• Commitment to revenue generation
• Managers are held accountable for revenue
generation

9. Financial Management
• Clear financial plan for sustaining new programs and increasing
capacity
• Sustainability factors are understood, easily described and have the
commitment of the organization
• Managers are familiar with the cash flow cycle, requirements and
status
• Resources are earmarked for realizing increased activity targets
• Financial management is integrated with budgeting, decision-
making and strategic planning
• The current budget has been reviewed, debated and approved by
the BOD
• The books are maintained on an accrual basis

10. Marketing and Communications
• There is a plan
• Describes the stakeholders' needs that are being served
• Assesses the enduring nature of these needs
• Well-informed about the social issue being addressed
• Speaks to the need for the organization’s service(s)
• Organization is widely known and viewed in a positive
light
• Organization maintains strong relationships in the
community
• Management and BOD all “speak the same language”

11. Social Enterprise
And for those that have a Social Enterprise…

12. Social Enterprise
• Plan to reach financial sustainability within a measurable timeframe
• Can successfully balance the social mission with the enterprise
• Adequate budget to support the social mission as well as the
enterprise
• Strategic plan that addresses the business systems required to
support managed growth
• A strong board with strong business skills
• Rigorous accounting systems
• Diversified Staff
• Identified adequate staff and resources for business
development, sales and marketing
• Access to Advisers

13. Thank You!