Capacity building for nonprofits refers to the process of developing the skills, resources, systems, and structures that allow an organization to operate more effectively and sustainably. This can involve staff training, leadership development, improving fundraising strategies, upgrading technology, or enhancing strategic planning.

In simple terms, it's about strengthening a nonprofit’s ability to achieve its mission and scale its impact. Many nonprofits struggle not because of a lack of passion, but because they lack internal infrastructure or capabilities. Capacity building for nonprofits ensures they aren’t just surviving from project to project but are developing a foundation for long-term success. Donors and foundations are increasingly recognizing the importance of funding capacity-building efforts alongside direct program work.