Grant Funder Services
Why Capacity-Building Matters: Strengthening Nonprofits for Lasting Impact
Capacity-building services are among the most strategic and high-leverage investments grant funders can make. By equipping grantees with the tools, training, and infrastructure they need to grow, these services directly enhance an organization’s effectiveness, sustainability, and ability to deliver on its mission. While the long-term, quantitative ROI of capacity-building is still being rigorously documented, a growing body of research and field experience demonstrates its transformative power. From exponential gains in fundraising to measurable improvements in governance and operational strength, the evidence is clear: investing in capacity isn’t just support—it’s a catalyst for lasting, high-impact change.
- Fundraising Capacity Yields High Returns: Investments in fundraising capacity can be particularly impactful. For instance, Network for Good found that, on average, every $1 invested into a nonprofit's fundraising capacity produces $10 in program or general operating revenue. NonProfit PRO
- Enhanced Organizational Performance: A longitudinal evaluation by Cause Effective revealed that nonprofits receiving capacity-building consulting experienced an average 25% improvement in areas such as fundraising, governance, and special events. Notably, board member involvement in fundraising activities increased by 50%, leading to a 48% rise in board member contributions.
- Volunteer Capacity-Building Support: The Archstone Foundation's partnership with Catchafire provided nonprofits with over 5,500 hours of expert volunteer assistance, valued at more than $1 million, resulting in a sixfold return on the foundation's investment. Archstone Foundation
- Long-Term Financial Growth: A study reported by Nonprofit Quarterly found that nonprofits receiving capacity-building grants from one foundation grew about 10% in the three years following the grant, regardless of whether the grants were targeted to financial capacity or other areas like governance or management.
Non Profit News | Nonprofit
Quarterly
“Pathways to Growth has been exceptional in the support that they have provided to our grantees both in the grant writing process and also in capacity-building and sustainability. At every step, Pathways to Growth has proven to be invaluable. They created assessments that evaluated organizations’ needs for training and individualized assistance with great clarity and then provided engaging and informative training and individualized assistance to bridge that identified gap. We highly recommend Pathways to Growth’s services.”
Michelle Voran - Partner Services Manager for Family First
Referencing Funder Services provided to Florida Department of Children and Families grantees
