This is a guest blog by Consultants for Good.
In light of evolving federal policies, shifts in funding priorities, and changes in program support, the National Council of Nonprofits forecasts a growing urgency for nonprofit services. With these challenges on the horizon, nonprofits need to reinforce their capacity for resilience to continue offering critical support to the communities they serve.
Capacity-building endeavors are often undervalued, though mounting evidence suggests they are essential for nonprofits’ future sustainability. As government officials indicate deep cuts to federal grants, investing in capacity-building can help organizations adapt:
With signals of upcoming cuts to grant funding, prioritizing capacity-building efforts can boost the longevity and impact of nonprofits.
The Urban Institute shares that when nonprofits utilize capacity-building strategies, they enhance their “ability to operate once…grant dollars are no longer available,” which is vital for maintaining quality community services.
The Effective Communities Project (ECP) similarly points out that capacity-building “ensures that the nonprofit is more likely to stay effective and have a sustainable future.”
While facing such uncertainty for the future, nonprofit teams may feel increased pressure to quickly implement solutions. Fortunately, nonprofit consultants can provide expert guidance:
By hiring an external consultant, nonprofits can benefit from the consultant’s unique perspectives gained through their work with a variety of organizations.
ECP notes that a “neutral third-party [consultant] can serve a very useful role…in assessing capacity building needs, in developing plans, [and] in providing accountability”.
Additionally, research from the Urban Institute indicates that when nonprofit leaders have a range of consultants to choose from, this can make capacity-building support more successful.
Consultants for Good, the sector’s largest community of nonprofit consultants, has just published its annual Nonprofit Consultant Landscape Analysis to assist nonprofits in navigating these decisions with:
Guidance on building a roster of options to find consultants who align with specific organizational needs
Data about consultants’ experience, areas of expertise, and demographic backgrounds
Additional research on the most effective capacity-building practices
Download the report for free at consultants4good.com/reports.