· Capacity is an abstract term that describes a wide range of capabilities, knowledge, and resources that nonprofits need in order to be effective. What makes an organization effective? According to Grantmakers for EffectiveOrganizations, it is “the rededication to achieving results.” Organizational capacity is multi-faceted and continually evolving.
· Building capacity is about building an organization’s ability to perform well. The framework for capacity building includes six elements of organizational capacity (see below). These interdependent elements provide the framework for successful capacity building, as they are important elements of a nonprofit organization’s health and performance.