Experience on Demand

Capacity Building

Why is capacity building essential within the nonprofit sector?

 
 

Nonprofit margins are very slim because they re-invest their resources into their mission. They need to have effective business practices to thrive. Many nonprofits are dependent on donated products or services to enhance their bottom line. The challenges nonprofits face are the same as for-profit businesses: strategic planning, financial stewardship, employeee engagement, operations management, process improvement, and achieving outcomes. Nonprofits' focus is on their mission, driving deliverables in addition to board governance, fundraising, and volunteering that supports the implementation of the mission. Additionally, nonprofits are accountable to the community in ways that private businesses are not. Successful nonprofit organizations adopt many of the best practices and tools used in for-profit business as well as unique tools developed specifically for the nonprofit sector.

But why should nonprofits adopt best practices? Best practices enhance success and sustainability. When a nonprofit builds effective processes and strong execution, they attract donors, board members, talent, and volunteers. They grow their capacity to weather economic storms, respond to change, grow, and conquer new challenges with enhanced mission outcomes.