Others are reworking programs so they are expandable, replicable, and sustainable over time. All of these solutions share one thing-the problem of capacity. Program delivery technology, training, human resource management, and community wealth creation are all aspects of organizational capacity building, and so are not directly related to program delivery. Those visionary foundations that fund organizational capacity building are thus the exception and not the rule, and as a result, too few nonprofits are allowed to develop beyond the needs of the next funding cycle. Yet, no consensus exists as to how capacity is best developed and to what degree funding will be dedicated to building capacity.
Some organizations provide unrestricted funding and allow investees to identify needs.
Others, such as the Center for Venture Philanthropy and Social Venture Partners, Seattle, work closely with grantees to identify needs and target funding in appropriate directions. Capacity involves everything that makes an organization more than the sum of the products and services it offers. Capacity allows an organization to see how effective it is at executing its mission, how market needs are changing, and where it could improve its processes. Beyond measuring outcomes, capacity allows an organization to analyze its programs in terms of effectiveness, efficiency, cost, timeliness and client satisfaction, all against the backdrop of a dynamically changing environment. Capacity thus enables an organization to continue developing new programs to match the changing needs of its clients.