Capacity Building and Your Nonprofit’s Theory of Change

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This week on the Nonprofit Jenni Show, Jenni talks with some partners who can support your nonprofit’s capacity building to increase your impact. First, Jenni interviews Colleen Kazemi, the Executive Director of Social Venture Partners Denver, about how SVP connects nonprofits and social ventures with pro bono support services. Then we’ll talk with Paul Collier, founder of Coeffect and one of SVP Denver’s partners, to learn how nonprofits can build capacity by developing their theory of change.

What is Capacity Building?

This week’s podcast episode talks about some different ways your nonprofit can engage in capacity building to better promote your mission. Here is how the National Council of Nonprofits defines capacity building:

“Capacity building is an investment in the effectiveness and future sustainability of a nonprofit. … When capacity building is successful, it strengthens a nonprofit’s ability to fulfill its mission over time, thereby enhancing the nonprofit’s ability to have a positive impact on lives and communities.”

Listen to this week’s episode of the Nonprofit Jenni Show to learn about:

  • How organizations like SVP Denver / SVP International, corporate partners, foundations, and other community stakeholders can support your nonprofit through the capacity building process

  • How your nonprofit can prepare for an effective consulting partnership if you work with a consultant through capacity building

  • How your nonprofit can develop a theory of change (and why this is the best first step to capacity building!)

Here are just a few highlights from the episode:

Two Examples of How SVP Denver Works With Nonprofits

Colleen Kazemi, the Executive Director of Social Venture Partners Denver, shares some examples of how her organization supports local nonprofits:

“Our partners use their professional experience to engage in strategic projects to support nonprofits in areas where they need support. For example, we helped a food bank mobilize their operation during the COVID-19 pandemic and this increased their capacity by 10 times. In this example, SVP Denver partners helped the food bank implement a mobile routing system and also funded the purchase of a truck to complete the deliveries.

“In 2020, we also launched our cohort program, where a subject matter expert leads a group of around 5 nonprofits paired with 5 partner coaches who work toward a final deliverable. The cohort model is unique in that it is a structured 8-10 week program with specific learning objectives and milestones.”

Tips for Working With a Consultant

Many nonprofit leaders work on capacity building with the guidance of a consultant (whether it’s an independent consultant like me, or a consultant they’ve connected with through a service provider like SVP Denver). I asked Colleen what advice she would give nonprofit leaders who are entering a relationship with a consultant, and here are some of her tips:

  • Give the consultant background information and context so they can really understand your needs

  • Talk about a proposed timeline, milestones, and deliverables for your consulting project to make sure you’re both on the same page about the scope of the project

  • Consider how much time your team has to dedicate toward this particular project so your consultant can make feasible recommendations for your work together

  • Once you define the scope of your proposed project, be sure to secure buy-in from your executive team so everyone is in alignment

Do you need help finding a consultant for your next big project? I maintain a wide network of nonprofit consultants who all specialize in different areas of nonprofit leadership. Reply directly to this email and tell me about your project! I’d love to help you get connected with a consultant who can support you.

Capacity Building Exercise: Define Your Theory of Change

Does your nonprofit have a defined theory of change?

If you’re new to this term, here’s how Paul Collier, founder of Coeffect, explains it: “A theory of change is essentially a process and a product that describes how an organization makes a lasting impact on its beneficiaries.”

Paul states that your theory of change should address all of the following elements:

  • Who you serve

  • The problem or challenge you’re trying to solve

  • What your organization does to address this problem

  • The assets you use to take on these activities

  • The results you hope to achieve

  • The beliefs and assumptions you hold about how change happens

I asked Paul why nonprofits really need to have a theory of change. He says:

“I guarantee that you, your staff, and your board members all have some idea in their minds about how what your nonprofit does translates into meaningful impact. But I also guarantee you that unless you've put that out on a page, [those ideas] are probably not all the same. Having an explicitly defined theory of change really helps folks get on the same page.

“And if you can communicate clearly internally about how you make an impact, then you can communicate even more clearly to funders and to partners and to your community about how you make an impact.” 

Listen to the Full Capacity Building Episode

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Jenni’s Favorite Resources This Week

  • Paul Collier’s Office Hours: Once per month, Paul Collier (founder of Coeffect) hosts office hours where you can ask specific questions about your nonprofit’s data & evaluation strategy.

  • Information | Insight | Impact: Coeffect’s newsletter, where they feature several of the best pieces of writing on social sector data use and strategy each month.

  • SVP Denver’s Capacity Building Application: Apply for an upcoming cohort, or to get support with an individual strategic project. (Note: These opportunities are only available to nonprofits located in the Greater Denver area. Check out SVP International for expanded opportunities!)

  • Giving Day Campaign Planner: Does your community have a local giving day coming up? My 6-week giving day campaign planner includes a step-by-step planning timeline, with suggested tasks to craft and promote your local giving day fundraiser this spring.