Supporting capacity strengthening as a funder

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Questions and Answers

What three aspects of a partner's change process might a funder influence?

Motive, means, and opportunity (correct)

Motivation, resources, and evaluation

Vision, strategy, and tactics

Planning, implementation, and review

When funders provide capacity-strengthening services directly, what is a common focus area?

Resource mobilisation and income generation

Grant management and compliance (correct)

Strategic planning and long-term vision

Leadership development and team building

What is a key benefit of enabling partners to purchase their own capacity-strengthening services?

It increases partner ownership and control (correct)

It provides better quality services

It aligns funder and partner goals

It reduces costs for the funder

What is the nature of change supported by capacity strengthening?

A gradual and ongoing evolution (A) Signup and view all the answers

What is meant by 'supporting the opportunity for change' in the context?

Creating an environment and conditions for change to happen (B) Signup and view all the answers

What can a funder do to promote partner ownership of the change process?

Resource the partner to acquire their own capacity strengthening services. (C) Signup and view all the answers

What is an action a funder can take that signals that they are 'monitoring and learning' during a change process?

Paying attention to the process without taking control of it (C) Signup and view all the answers

What does the text imply by stating, 'Change is not parachuting in a consultant for two days'?

Change requires a long term approach. (A) Signup and view all the answers

Why is it important for funders to regularly inquire about the progress of capacity building?

To subtly remind partners of its ongoing importance. (A) Signup and view all the answers

What is a crucial element for funders to acknowledge when supporting capacity strengthening?

That capacity strengthening seldom happens by arbitrary project deadlines. (C) Signup and view all the answers

What is a primary reason why many organizations struggle to change, as mentioned in the text?

Being too busy with implementing their core programs. (D) Signup and view all the answers

Based on the text, why should funders collaborate with each other on capacity strengthening?

To avoid contradictory demands that overwhelm partners. (B) Signup and view all the answers

What issue is raised regarding grant making systems?

Restrictive, short-term funding processes often undermine capacity building. (C) Signup and view all the answers

An NGO leadership spends 50% of its time on donor initiatives because of:

Too many capacity strengthening programs from various donors. (A) Signup and view all the answers

What should programme grants do with regard to capacity changes?

Encourage and even incentivize the desired capacity changes. (B) Signup and view all the answers

What practice in grant funding processes is most likely to hinder capacity strengthening?

Short-term and burdensome reporting requirements. (C) Signup and view all the answers

What is the main disadvantage of annual project funding, according to the text?

It discourages investment in necessary long-term organizational changes. (A) Signup and view all the answers

What is meant by the term 'starvation cycle' in the context of civil society organizations?

A pattern of under-investment in administrative functions, leading to a cycle of poor financial reporting and low overhead expenses. (A) Signup and view all the answers

Which approach involves funding the organization rather than specific projects and allowing them to allocate resources based on their strategy?

Core support. (B) Signup and view all the answers

What is a primary benefit of providing 'core support' to partner organizations?

It provides partners with flexibility to invest in organizational development and cover overhead costs. (D) Signup and view all the answers

What does 'true cost funding' seek to address?

The 'starvation cycle' by funding both direct and a fair portion of indirect project costs. (A) Signup and view all the answers

Apart from direct project costs, which of the following can be covered under 'true cost funding'?

A combination of financial management, safeguarding, people management, office, and transport costs. (C) Signup and view all the answers

What is the minimum duration that USAID concluded is necessary for genuine capacity strengthening?

10 years. (D) Signup and view all the answers

What percentage of indirect costs do the MacArthur Foundation now allow to their partners, according to the text?

29%. (A) Signup and view all the answers

Study Notes

Supporting Capacity Strengthening Strategically

Funders can influence partner motivation for change simply by asking good questions about safeguarding and strategy.
Funders can help partners define change processes and priorities.
This involves creating a scope of work or a capacity strengthening plan.

How Funders Support Change

Providing access to capacity strengthening services: Funders can support capacity strengthening by providing resources, signposting to relevant services, or even running training programs. This is sometimes related to grant management.
Enabling partners to purchase capacity strengthening services: Funders can empower partners to pay for these services using their own funds (core or programmatic), which fosters greater ownership. Grantmakers might offer dedicated funding windows for capacity building.
Monitoring and learning with patience: Funders should observe the change process without interference, emphasizing the gradual nature of change ("drip-drip evolution"). Regularly asking about progress is helpful, and lessons learned can be valuable.
Collaborating with other funders: Collaboration helps ensure partners aren't overwhelmed with contradictory demands and promotes shared incentives.

Aligning Funding Policies and Practices

Multi-year funding: Long-term funding encourages sustained capacity strengthening efforts, as opposed to short-term perspectives.
Core Support: Investing in core support (infrastructure, people, etc.) is vital for long-term sustainability, preventing an unsustainable cycle of under-investment in organizational infrastructure.
Funders can support capacity strengthening by adjusting grantmaking systems to support rather than hinder these efforts (e.g., by reducing burdensome reporting).

True Costs and Core Funding

True cost funding: Funders can address the "starvation cycle" by covering all direct costs and indirect costs of operation (administration, safeguarding, etc.) in projects.
Core support: This is a way to fund the organization rather than just the project, allowing partners to manage their funding effectively, and encourages capacity strengthening.

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