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Posts Tagged ‘organizational capacity’

The Value of Capacity Building

By David La Piana

Tuesday, October 5th, 2010

When foundation officers say “we don’t fund capacity building,” I am always tempted to reply, “Is that because you don’t want your programmatic investment to pay off?”

I usually bite my tongue in those situations but I am always left wondering, would your foundation buy a house and then not replace a faulty furnace or broken hot water tank? Would they buy a new car and then never change the oil or spark plugs?

The point is that when you invest in something important you take care of it, you make sure it operates smoothly and occasionally you upgrade it. You don’t just buy it and let it fall apart.

Yet the “no capacity-building” movement among funders, and its close cousin the “no indirect cost” school of thought , somehow assume that the organization’s infrastructure can run on air while the funder’s money goes into the important stuff, the program.

How many times has a funder invested heavily in a new idea only to see it fail to produce the desired outcome? The funder usually decides the innovative idea just wasn’t the right solution and moves on.

However, I know from experience that in many of these situations, the programmatic idea never had a real chance to succeed because a weak board, poor financial management practices, lack of a clear organizational identity and purpose, or similar infrastructure weaknesses doomed the program, and the organization itself, to failure.

If the funder had invested in strengthening the organizational infrastructure, as un-sexy as that might be, the innovative program idea would’ve had a better chance for success.

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