Capacity Benchmarking Tool
For Faith- and Community-Based Organizations
Table of Contents | Introduction
Preface
Improving capacity – an organization’s ability to carry out its mission – has become a “hot topic” for many nonprofit leaders and funders. Increasingly, private and public funders are encouraging nonprofit leaders to: (1) assess their organizations’ capacity, (2) identify priorities for capacity improvement, and (3) design and implement capacity building strategies. Nonetheless, executive directors of small struggling community-based organizations may wonder whether they have time to think about capacity. In the short-run there are costs. For example, recruiting new Board members, holding a board retreat, and setting up a web site all require time that might otherwise be spent on service to clients. In the long-run, however, benefits such as new funding sources and more effective programs enhance organizations’ ability to survive and provide services.
Capacity has many inter-related facets, including an organization’s ability to:
-
Recruit and train active and engaged board members who bring skills and devote time to the organization, and who understand board members’ roles and responsibilities;
-
Set goals for program size, service quality, staffing, revenue, and revenue sources.
-
Develop plans to achieve goals, measure whether goals have been met, and make improvements based on evaluation results; and
-
Establish a positive reputation in the community so that (1) services are accessible, (2) community members advocate for the organization, (3) individuals support the organization with money and time, and (4) other organizations and businesses want to collaborate for better services.
The Compassion Capital Fund (CCF), administered by the U.S. Department of Health and Human Services, Administration for Children and Families (ACF), funds intermediary organizations’ capacity building assistance to faith- and community-based organizations. In support of these efforts, HHS commissioned Branch Associates, Inc., in partnership with Abt Associates, Inc., to conduct a study, Examining the Services and Promising Practices of Intermediary Organizations and the Faith- and Community-Based Organizations They Serve. This study allowed Branch Associates, Inc. to create this Capacity Benchmarking Tool by incorporating the knowledge and lessons it learned in the field, with the experiences of intermediaries and, most importantly, the insights of community-based nonprofit leaders – the intended audience for this tool.
This tool rests on two foundations – best practices and benchmarks. Best practices summarize the consensus among researchers, nonprofit leaders, and technical assistance providers about running effective and financially sound organizations 1. Benchmarks are the descriptive or measurable indicators of how well organizations carry out the best practices. As an organization achieves benchmarks, it becomes stronger, more effective, and more efficient.
Table of Contents | Introduction