How Foundations Can Truly Build Capacity for Nonprofits

In this article, I’ll provide some concrete ideas for foundations to support grantee technology success. I’ll also show off my generative AI prowess, just to prove I didn’t miss that train.

Do capacity building programs include or ignore technology?

We’ve established by now that strong technology infrastructure and skill contribute to effective and resilient nonprofit organizations. (If you don’t see the connection yet, browse some of my previous articles, such as this one.)?

Foundations design their capacity building programs to do just that: help nonprofits become more effective and resilient, or in other words, build their capacity to do good work. If technology is a key driver, one might expect it to be a key component of capacity building programs, right??

I did a bit of internet research to see if anyone has studied or surveyed capacity building programs in the past few years, and I came across a tantalizing description of a paper by Grantmakers for Effective Organizations, a paper which I unfortunately could not read since I am not a member.

Then I remembered this field scan from the Hewlett Foundation. The Hewlett paper was based on interviews with 15 organizations, the majority of them large private foundations. It didn’t say how many of them are offering any capacity building related to technology, but it did use the word Technology three times in the 36-page document: once in a laundry list of the types of issues capacity building might encompass, once in reference to challenges experienced by global organizations (“technology access”), and once in a miniature case study about West African Civil Society Institute, which “supports its clients in technology planning, digital security, and digital resilience, and offers them access to low-cost or free laptops and software.” (Bravo, WACSI!)

How technology fits into typical components of a capacity building program

Still unsatisfied, I asked the internet again, via ChatGPT. It did mention technology a few times. I’ll let you read the response, in italics, interspersed with my commentary in the main color.

Prompt: “What is typically included in a foundation's capacity building program for nonprofits?”?

Response: A foundation's capacity building program for nonprofits may include a range of activities and resources designed to enhance the effectiveness and sustainability of the organizations they support. Here are some examples of what might be included:

1. Training and Workshops: Nonprofits may receive training on topics such as fundraising, grant writing, financial management, program evaluation, and board development. Gold star to the Hartford Foundation and Initiative Foundation, two I’ve worked with to bring technology workshops and webinars to their communities. Pro tip: beware of software companies and tech vendors that want to provide training for you, as some (not all) come with a sales pitch or a heavy dose of bias.

2. Technical Assistance: Foundations may provide technical assistance in areas such as human resources, strategic planning, marketing, and information technology. Consider building a referral list or partnering with a consultant or service provider you trust. A handful of foundations make their own IT staff available to provide advice to grantees. Grants or reimbursements seem more common. Offering technical assistance with planning and tool selection can lead to stronger grant applications and more successful tool implementation.

3. Coaching and Mentoring: Some foundations offer coaching and mentoring programs to help nonprofits develop leadership skills and improve their management practices. Technology leaders need coaching too! Many of us came into a leadership position via a technical track, and can benefit from professional development around the strategy and change management that are essential to a thriving IT function.

4. Networking Opportunities: Nonprofits may be invited to attend conferences, events, and meetings where they can meet and learn from other nonprofit leaders and experts in the field. What about hosting a networking event for organizations undergoing a technology change? Or those looking to collaborate or share technology and data infrastructure?

5. Access to Resources: Foundations may offer access to resources such as software, databases, research, and publications to help nonprofits build their capacity. Foundations can negotiate reduced rates for their grantees on software subscriptions, as well as supporting sector research about technology tools and practices. Here’s a great example of a research publication I worked on when texting was emerging as a tool for program delivery, funded anonymously by a foundation hoping to advance knowledge in the sector. (Free, requires your contact details.)

6. Collaborative Partnerships: Foundations may facilitate partnerships and collaborations between nonprofits and other organizations to share resources, knowledge, and expertise. What I would like to see here is strong foundation support (i.e. funding) for the organizations that form the backbone of nonprofit tech: NTEN, TechSoup, Tech Impact, Net Hope, and others that convene the sector around technology issues, conduct research, and share knowledge. High fives to Fidelity Charitable Trustees’ Initiative for showing leadership here.

7. Capacity Building Grants: Some foundations provide grants specifically for capacity building purposes, allowing nonprofits to invest in the tools, training, and resources they need to build their organizational capacity. A great example of this is the Keith Campbell Foundation for the Environment, which has provided several opportunities for grantees to receive funding for technology projects. A grant as small as $5,000-10,000 can make a big difference to organizations that are struggling to fund technology with limited general operating dollars. (Of course, an unrestricted grant is even better.)

Overall, the goal of a foundation's capacity building program is to help nonprofits build their organizational capacity and strengthen their ability to achieve their mission over the long term.

How can your foundation begin to retool capacity building so it includes technology?

There are so many things you can do! Here’s one idea to get started: Survey grantees about their interests. Think carefully about how you ask the questions. A multiple choice list of workshop topics that includes items like “evaluating technology investments” or “getting everyone to use our database” or “protecting my organization from cyber attacks” will yield richer results than a simple question about whether they are interested in technology.

Another idea is to simply make technology assessment and planning expenses eligible for capacity building grants you are already providing. This signals to grantees that you recognize the importance of technology to their success, and invites them to share their needs with you. Just make sure the folks reviewing grant applications are qualified to evaluate these kinds of requests, and if not, bring in an expert to advise you.

The Hewlett Foundation’s report did offer solid general guidelines for capacity building programs, including “center nonprofits’ needs” and “pay for true cost”. Whatever you choose to do, please let grantees take the lead.