Supporting Grantees through Capacity Building Initiatives The Indiana Philanthropy Alliance Annual Conference June 7, 2016 Sara Beggs, Intentional Philanthropy Eric Hessel, Hendricks County Community Foundation Melynne Klaus, Christel DeHaan Family Foundation Justine Lightfoot, Community Foundation of Elkhart County Jodi Spataro, Community Foundation of Elkhart County

Agenda Welcome and Setting the Stage Capacity Building Overview Capacity Building in Practice Q&A Closing Comments

What is Capacity Building? Any activity that has the purpose of strengthening a nonprofit’s ability to fulfill its mission effectively now and in the future. Funding and technical assistance to help nonprofits increase specific capacities to deliver stronger programs, take risks, build connections, innovate and iterate.

What is Capacity Building? 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. Capacity building is not a one- time effort to improve short-term effectiveness, but a continuous improvement strategy toward the creation of a sustainable and effective organization.

What activities would be considered capacity building? 5 core areas: Staff & board leadership; Financial management; Fundraising/development; Technology & infrastructure; Evaluation

What activities would be considered capacity building? identifying a communications strategy improving volunteer recruitment ensuring thoughtful leadership succession strengthening the board updating a nonprofit’s technology improving how it measures its outcomes developing a strategic plan understanding & responding to the organization’s ecosystem developing change management, collaboration and advocacy skills

What capacity building is NOT: General operating support – though it could be used for that. Programmatic improvements The same for every organization!

The Spectrum of Capacity Building Formally doing CB for some time Starting a CB program Informally funded isolated CB projects Never funded CB

What are you hoping to know about capacity building by the end of this session?

The Importance of Capacity Building NOW Nonprofits are facing critical and complex challenges Strong resilient organizations are better prepared to experiment and innovate High-performing organizations are able to more consistently deliver high-quality programs.

GEO’s Listening Tour

GEO’s Findings: The Challenges for the field Finding qualified, appropriate builders (flood OR drought!) •Piecemeal approaches •Lack of incentives to build capacity •Perceived lack of quantitative evidence Tendency to go broad rather than deep

GEO’s Findings: Funder Challenges Proper assessment of capacity and readiness Role of the funder: directive or responsive? Mutual trust and honesty

GEO’s Findings: Nonprofit Challenges Obtaining funding for CB Internal capacity to build capacity Knowing where to start Fundraising, technology, board development among most-desired Reporting requirements

GEO’s findings: What nonprofits want/need Sufficient, flexible, longer-term funding for capacity building Investing in leadership capacity & building peer networks Help in identifying quality providers Personal relationships with funders

GEO’s findings: What nonprofits DON’T want/need Burdensome application and reporting Limited, short-term grants Lack of relationships with grantees Funder-selected consultants Lack of clarity in communications

A Few Keys for Success It’s critical that you accurately assess and prioritize the needs Good capacity building results depend on trusting relationships between funders and grantees. The best results are seen when the capacity building funding is customized to the grantee’s specific needs.

Resources How Can We Support Capacity Building Efforts? What are they Key Things We Need to Know about Organizational Assessments? Effective Capacity Building in Nonprofit Organizations.

Questions? Eric Hessel: Eric@hendrickscountycf.org Melynne Klaus: mklaus@cde-ltd.com Justine Lightfoot: justine@inspiringGood.org Jodi Spataro: jodi@inspiringGood.org Sara Beggs: Sara@intentionalphilanthropy.com