Trends in Nonprofit Capacity Building

Sponsored by the Berkshire Taconic Community Foundation, Connecticut Community Foundation, Foundation for Community Health, and the Northwest Connecticut Community Foundation 

This report offers a practical, research-informed look at how nonprofit capacity building is evolving—and what those shifts mean for funders, capacity builders, and nonprofit leaders alike. Drawing on recent literature and field examples, it explores emerging approaches that emphasize equity, trust-based relationships, long-term investment, and ecosystem-level support. It is intended as a resource for those seeking to design, fund, or participate in capacity-building efforts that are more responsive to today's complex nonprofit realities. 

In this report, you'll find: 

  • A clear overview of how nonprofit capacity building is being redefined, including movement away from function-based models toward more holistic and relational approaches 
  • Key themes shaping the field, such as trust-based philanthropy, long-term and multilayered supports, and the integration of equity into capacity building practice 
  • An exploration of how traditional capacity building approaches can unintentionally reinforce barriers—and what more transformative alternatives look like 
  • Practical insights on effective strategies, including cohorts, communities of practice, coaching, and system navigator models 
  • Considerations for funders interested in strengthening local and regional capacity building ecosystems through collaboration, flexible funding, and shared learning. 

We hope this report supports thoughtful reflection, informed decision-making, and ongoing learning among those committed to strengthening the nonprofit sector over the long term.