Organizational Capacity refers to the proposing organization’s or group’s ability to implement, measure, and manage its intended results, given the talent, capabilities, and financial resources at its disposal.
Organizational Capacity also includes a demonstrated past commitment to addressing structural inequality. In assessing this element, you are assessing whether the proposal’s intended results are “right-sized” to the team and resources available. This is a feasibility check.
For example, a national nonprofit with affiliate partners in multiple cities and a track record of success in direct service and advocacy could be in an excellent position to shift policy in its home country and maybe even influence policy in others. On the other hand, a young, grass-roots organization in a country that lacks infrastructure may be expected to deliver services to a disadvantaged community that had previously lacked access to services. However, it would be unfair to hold that organization accountable for shifting national or regional policy.
If a proposal ranks high on all other elements of the rubric, resist eliminating it from funding decisions purely on the basis of limited existing organizational capacity. As mentioned in What Is Structural Inequality?, there is a well-documented historic underinvestment in organizations led by certain leaders. Philanthropic funding can help rectify this lack of investment and bring capacity to nonprofits with high potential that have previously been excluded.
