April 23, 2026 | By: Minh Ha
LFA has a lot to say about capacity building, and we’ve got a unique take because we don’t just evaluate it—we also deliver it.
When we talk about capacity building, we mean collective learning, personalized coaching, and connection to resources and tools, typically supported by a dedicated funder through a cohort model. The goal? Activities and learning that help participating nonprofits fulfill their missions effectively and sustainably.
Our team has first-hand experience providing technical assistance to nonprofit organizations to build their evaluation muscles. We also serve as evaluators to funders, giving us an authentic, 360-degree view—of the amazing upsides and the common drawbacks—from their grantees. We’ve learned a lot over the years, and we want to share our knowledge. Here’s our perspective on what funders need to know to level up the capacity building experience.
Let’s be honest: every organization is paying attention to millions of things, and some nonprofits are better primed for capacity building than others. If other major priorities are soaking up their time and attention, the funder and capacity builder should take that into account.
The simple fix is a holistic assessment. Funders should look at many factors—staff size, existing expertise, and other major projects and ongoing priorities—to tailor the goals each grantee can realistically meet through capacity building. In this approach to goal setting, expectations of grantee development are appropriately weighted against their starting point and capacity to achieve success. We like it because it helps prevent unfair comparisons between startup nonprofits and more established peer organizations.
Many funders kick off capacity building endeavors with an assessment, and a baseline diagnostic of grantee skills becomes infinitely more powerful when you communicate those findings back to grantees early on. We find that capacity building evaluations are stronger when they feature multiple perspectives (yes, including the funder’s!)
Making the time to discuss the results builds immediate trust. It shows funded partners that their funder is ready for a thoughtful and transparent conversation about their strengths. This dialogue instantly helps to re-imagine the traditional funder-grantee power dynamic. It creates an authentic space for grantees to share both their excitement and reservations, fostering transparency right from the start.
We hear one request from cohort participants more than any other: more peer learning! They often tell us that learning sessions and one-on-one coaching can leave them feeling overwhelmed with information, homework, and deadlines, and like those touchpoints are transactional.
As we recently told a funder: grantee program staff are, famously, people persons. Our experience tells us that grantees are relational learners; they learn better when they can process and wrestle with new concepts together. Hosting peer-based learning sessions—without funders in the room—creates a more relaxed space for genuine connection. It allows grantees to deepen their relationships, freely ask for advice, and offer mutual support and understanding.
We recently saw the impact of this firsthand when we facilitated a closed cohort learning session. One grantee was struggling to meet project expectations, and both the funder and the technical assistance provider were struggling to get through to them. The peer learning session came to the rescue. There was a magical moment where other grantees instinctively rallied around their peer, sharing their own relatable challenges and expressing deep empathy. This authentic show of support was a critical turning point. The previously struggling grantee became instantly more receptive to collaborations with its fellow cohort members to deliver on project goals.
Not to toot our own horn, but one grantee admitted at the end of the session: “I thought this was going to be like pulling teeth, but I actually learned so much!” Peer learning is so powerful, it will convert even the strongest skeptics.
Let’s Chat: Share your capacity building wins, and woes
As happy as we are to share more of our secrets, we too are people persons. If you’re a funder focused on creating a truly worthwhile experience for your grantees, let’s chat. And, if you’re a grantee that’s always wanted to leave a Yelp-style review of your capacity building experiences, we want to hear from you! Comment below or reach out to us directly at connect@learningforaction.com.