Organizations that received any capacity grant are growing by around 10 percent in the three years following the grant. Grants that specifically targeted financial capacity development did not lead to greater long-term financial outcomes than grants that focused on other management or governance issues.
It is thought that one benefit of these grants may stem from receiving the explicit imprimatur of a foundation. In lay terms, receiving a capacity grant from the foundation may work as a seal of approval that makes the nonprofit organization more enticing to other foundations and donors. Evaluating if targeted capacity building improves nonprofit financial growth, was published in the journal Nonprofit Management and Leadership. The paper was co-authored by Lewis Faulk of American University.
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Ganesh Natarajan is the Founder and Chairman of 5FWorld, a new platform for funding and developing start-ups, social enterprises and the skills eco-system in India. In the past two decades, he has built two of India’s high-growth software services companies – Aptech and Zensar – almost from scratch to global success.