1. Finding, Developing and Capitalizing on the Capacity Dividend
Landscape Review Findings

2. What did we want to learn?
Is there such a thing as a ‘Capacity Dividend’?
Do capacity building activities translate into tangible impacts for organizations?
Does capacity building lead to increased social impact?
What types of capacity building investments are most effective?

3. Our Approach From June – August 2016:
Structured review of ~60 studies from:
foundations, 3rd party, capacity building providers, academic studies
Interviews with 11 foundation and sector thought leaders
Sharing back and discussing the research findings
Did the studies tell us:
What kind of capacity is most needed?
How should capacity building be delivered?
What impact, if any, does improved capacity make on the organization and their impact?

4. Questions 1: What kind of capacity building do non-profits need
Questions 1: What kind of capacity building do non-profits need? (1 of 2)
Research points to 4 different types of capacity building:
Organizational Fundamentals
Strategy & Leadership
Adaptive, Resilient, Facilitative, Learning & Problem Solving Skills & Abilities
Bespoke – capacity building based on –
core issues, mission, size, type, age/maturity

5. Questions 1: What kind of capacity building do non-profits need
Questions 1: What kind of capacity building do non-profits need? (2 of 2)
Research coalesced around one of the four types of capacity building
The evaluations measured the value of the capacity building through the lens of their specific offering
Didn't ask:
if a different type might have been more effective,
what the impact would have been without the capacity building,
if another intervention – such as cash – would have had the same impact

6. Question 2: What impacts does capacity building generate? (1 of 2)
Most of the research was:
theoretical or
relied exclusively on self-reported data from non-profits or
assumed if organizational effectiveness improved then social outcomes must have been achieved or
lacked a robust theory of change/logical framework which made it impossible to determine the impact

7. What impacts does capacity building generate? (2 of 2)
Four studies find a positive relationship
One study finds $150M in economic and social benefits from $20M in investment in capacity
How did they do that?

8. What this means for our work going forward?
1) We need a set of guiding principles and an approach for measuring effectiveness.
How to determine the right approaches to measure capacity building impacts.
How to prioritize key interventions
How to assess the right kind of capacity building delivery methods
The principles could build off the GEO Three Principles for Grantmakers - Contextual, Continuous, Collective

9. What this means for our work going forward?
2) We need to situate capacity building within a larger system with a clearly defined problem or challenge
What challenge are we trying to address?
Who is positioned to create positive change in that system?
What skills do they have or need to create the change?
How do we track their impact on systems outcomes?

10. What this means for our work going forward?
3) We need to develop purpose driven capacity building initiatives
Develop a roadmap for capacity building solutions
Adopt evaluation methodologies that are:
evidence based and
support good management and
are practical to implement

11. The landscape analysis suggests that the question is not whether certain types of capacity building are better or worse than others. Rather, the question grant-makers and nonprofits should ask is what kinds of capacity building will achieve the desired outcomes and optimize mission-related impacts.

12. The Team
The Social Sector Accelerator is the innovation lab of Counterpart International. Building on Counterpart’s 50 years of experience building the capacity of the social sector, the Social Sector Accelerator increases investments in capable partners, accelerates the impact of leaders, organizations and networks from the social sector and improve the quality of development partnerships. – Teresa Crawford –
Counterpart International improves capabilities of the social sector by building the effectiveness and efficiency of social sector organizations. Partner organizations are able to deliver more impact with the same amount of resources and find new ways of operating that catapult their reach and impact to the next level.
IO Sustainability rigorously measures the return on investments – both social and economic – to businesses and to society. Documenting which investments move the needle on economic and social value allows its clients to invest wisely in social and economic programs. – Steve Rochlin –

13. Thank you! Contact: Teresa Crawford Executive Director
Social Sector Accelerator A member of the Counterpart International Net work
Steve Rochlin
Co-CEO
IO Sustainability