ORGANIZATIONAL CAPACITY
ASSESSMENT TOOL
CAPACITY ASSESSMENT
The Capacity Assessment Tool is a useful guide to help you focus a discussion about the resources and practices your organization already has and those it will need to accomplish its goals. BC SVP focuses on organizational capacity building because we are committed to and believe that supporting nonprofits as they develop their core skills, management practices and systems, enhances a nonprofit’s ability to fulfill its mission.
The purpose of the Capacity Assessment Tool is to help you decide which attributes, resources or practices are most critical to accomplishing your goals. It is primarily a learning tool. Along with a special section devoted to Social Enterprise, this document will address seven critical areas of capacity that are at the foundation of healthy organizations. They are:
1. Strategic Planning
Do you have a well-articulated strategic plan to support your organization’s mission?
2. Management/Leadership
Do you have an executive staff experienced in nonprofit management?
3. Board Development
Does your board provide strong direction and support with enough knowledge about the nonprofit culture?
4. Human Resources
Do you have a solid plan for recruiting, training, developing and retaining staff?
5. Fund Development
Do you have diversified funding sources, a secure donor management system, organizational fundraising skills and enough revenue?
6. Financial Management
STRATEGIC PLANNING
We strive to develop organizations with strategic planning processes that reflect the following ideal characteristics:
Low Med High
*NOTES:
The strategic plan has been developed by a representative group of the organization’s key decision makers
The strategic plan articulates how the organization’s mission is expressed in its programs.
The strategic plan links to budget, program plans, timelines, and accountabilities.
The strategic plan realistically forecasts the time required to build new programs, which will be financially sustainable and/or produce mission results.
The strategic plan addresses anticipated changes in any source of revenue.
The strategic plan reflects the current conditions of the social issue being addressed.
The strategic plan addresses the needs of all the stakeholders.
Performance measurement and evaluation are linked to the strategic plan with targets and benchmarks
MANAGEMENT LEADERSHIP
We strive to develop organizational management leadership that reflects the following ideal characteristics:
Low Med High
*NOTES:
Management is entrepreneurial, opportunistic and
leverage-seeking Management is networked, allied, and influential in
the social issue being addressed
The organizational structure and decision-making roles are articulated, understood, respected, and designed to support strategy
There is a common understanding of the
organization’s plans, goals and objectives between board and management
The current complement of management and board is adequate to address fundraising goals without neglecting other programmatic activities
The organization relies on a strong management team and not just the Executive Director
There is a succession plan for key management activities
BOARD DEVELOPMENT
We strive to develop organizations with boards that reflect the following ideal characteristics:
Low Med High
*NOTES:
The organization is able to attract talented board resources
Board roles and expectations are made clear from the beginning of engagement
The board effectively participates in strategic planning, is deployed to support strategic goals and is accountable for organizational outcomes
The board works well with management from clear roles
The board monitors the organization’s progress vis- à-vis the strategic plan and acts effectively to re- evaluate and adjust as conditions change
Board composition is sufficient to accomplish stated goals
Meeting schedule matches the organization’s business cycle and is frequent enough to ensure board orientation to the organization
HUMAN RESOURCES
We strive to develop organizations that with human resource systems that reflect the following ideal characteristics:
Low Med High
*NOTES:
The organization is able to attract talented staff in a timely manner
There is adequate, experienced staff with nonprofit and entrepreneurial skills, as well as market knowledge
Human resources policies require staff to be regularly evaluated and rewarded
There are up-to-date job descriptions and goals and objectives for all positions
Wages are sufficient to attract and retain key managers
The management and staff are committed to professional development
The budget includes a reasonable expenditure for regular professional development
The organization is able to forecast emerging human resources needs
FINANCIAL MANAGEMENT
We strive to develop organizations that with financial management processes that reflect the following ideal characteristics:
Low Med High
*NOTES:
The organization has a clear financial plan for sustaining new programs and increasing capacity in the long-term
The organizational sustainability factors are understood, easily described and have the commitment of the organization
Managers are familiar with the cash flow cycle, cash flow requirements and cash flow status
Resources are earmarked for realizing increased activity targets
Financial management is integrated with budgeting, decision-making and strategic planning
The current budget has been reviewed, debated and approved by the board of directors
The books are maintained on an accrual basis and information on cash flow, profitability and
capitalization is generated by the system
FUND DEVELOPMENT
We strive to develop organizations with fund development strategies that reflect the following ideal characteristics:
Low Med High
*NOTES:
The organization’s funding is diversified and from multiple sources
There is a well-documented donor management system to track prospects and existing donors There are well-developed internal fundraising skills with access to external expertise when needed
There are well-developed systems for long-term planning including; revenue generation and cost and effectiveness of fundraising strategies
There is a commitment to revenue generation with an understanding of innovative models like cause- related marketing, fee for service and retailing, etc.
Managers are held accountable for revenue generation
MARKETING AND COMMUNICATIONS
We strive to develop organizations with marketing and communications activities that reflect the following ideal characteristics:
Low Med High
*NOTES:
There is a plan that describes the value of service to target audiences and how the organization’s
strategic goals are aligned to support this value.
The plan describes the stakeholders' needs that are being served
The plan assesses the enduring nature of these needs
The plan is well-informed about the social issue being addressed and the environment in which the organization operates
The plan speaks to the need for the organization’s service(s)
The organization is widely known in the community and viewed in a positive light
The organization maintains strong relationships with key partners and stakeholders in the community Management and board members can speak to stakeholder needs, value of the service, and the social issue being addressed
SOCIAL ENTERPRISE
We strive to develop social enterprises that reflect the following ideal characteristics:
Low Med High
The organization has a plan to reach financial sustainability within a measurable timeframe .
The organization can successfully balance the social mission with the enterprise
The organization has an adequate budget to support the social mission as well as the enterprise (e.g.
employee support, additional management, etc.
The organization has a strategic plan that addresses the business systems required to support growth in a managed way
The organization has a strong board with strong business skills as well as knowledge of nonprofit culture
The organization has rigorous accounting systems to manage the business, revenue expenses and profit The organization has a diversified staff with
adequate skill sets in both social services and business management
The organization has identified adequate staff and resources for business development, sales and marketing
The organization has access to advisors who are subject-matter experts in the enterprise field and business management
