Capacity Building Field Guide

How to fund capacity building

Restricted grants, unrestricted support, cohorts and portfolio models: the main ways funders pay for capacity building.

Four funding models

  • Restricted capacity-building grants — a grant for a specific project, such as a strategic plan.
  • Unrestricted (general operating) support — the nonprofit decides; flexible but often not enough for larger projects.
  • Sponsored cohorts — a funder underwrites a program for a group of grantees with a shared need.
  • Portfolio capacity building — every grantee gets access to a platform, peers and resources, with deeper support where it’s wanted.

Reach versus depth

Consultant-per-grantee models go deep but tend to reach a minority of a portfolio in any year. Portfolio models reach everyone and target depth. Many funders combine them.

How portfolio capacity building works · Sketch a budget

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