Investing in Capacity Strengthening

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Questions and Answers

Which of the following is the MOST accurate description of Oak's approach to capacity strengthening?

  • Oak supports grantees in accessing external expertise for capacity strengthening, rather than providing direct capacity strengthening services. (correct)
  • Oak provides financial resources and expects grantees to independently manage their capacity strengthening without further involvement.
  • Oak focuses solely on funding already competent organizations, eliminating the need for capacity strengthening initiatives.
  • Oak believes in directly managing the capacity strengthening of its grantees to ensure quality control and alignment with its mission.

What is a primary reason why funders should invest in capacity strengthening of their grantees?

  • To exert greater control over how grantees allocate and utilize the received funds.
  • To reduce the administrative burden on the funder by having more efficient grantee organizations.
  • To ensure grantees adhere strictly to the funder's organizational values and operational methods.
  • To address organizational issues that may prevent great projects from achieving their intended impact. (correct)

What is the MOST significant challenge that funders face when trying to strengthen the capacity of another organization?

  • The legal and ethical considerations related to intervening in the internal affairs of a grantee organization.
  • The lack of standardized capacity strengthening programs that can be easily implemented across different organizations.
  • The high costs associated with hiring qualified capacity-building consultants and trainers.
  • The difficulty in overcoming resistance to change and navigating internal politics within the grantee organization. (correct)

What is a potential negative consequence of funders being too directly involved in the capacity strengthening of grantees?

<p>It can discourage grantees from openly addressing sensitive issues, leading to superficial improvements. (A)</p> Signup and view all the answers

A funder wants to support capacity building but decides to let the grantee contract a provider themselves. According to the text, what role are they taking?

<p>Managing capacity building grants to partners. (A)</p> Signup and view all the answers

Which of the following is the MOST likely reason why a grantee organization might be hesitant to reveal significant weaknesses to a funder?

<p>The grantee fears that revealing weaknesses might jeopardize their chances of receiving funding. (C)</p> Signup and view all the answers

What underlying assumption does Oak make about grantees when deciding to invest in capacity strengthening?

<p>Grantees, regardless of their current capabilities, always have room for improvement. (A)</p> Signup and view all the answers

Oak's investment in capacity strengthening represents approximately what percentage of their total grant-making?

<p>20% (D)</p> Signup and view all the answers

Which of the following best reflects the analogy used to describe the importance of capacity strengthening?

<p>A car needs fuel to run, but also needs to be maintained. (B)</p> Signup and view all the answers

Which of the following is NOT identified as an area that capacity strengthening might address?

<p>Legal compliance (D)</p> Signup and view all the answers

Flashcards

Capacity Strengthening

Helping grantees improve their capabilities, not just giving grants.

Benefits of Capacity Strengthening

Stronger leadership, systems, structures, and staff skills that lead to better outcomes.

Tangible Benefits

Leaders with courage and humility to make tough calls. High-performing organizations deliver sustainable results. Networks complement members' work.

Challenges of Strengthening Capacity

Involves navigating interests, sensitivities, potentially difficult to catalyze change.

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Funder Roles in Supporting

Provide inputs through staff, contract providers, or manage grants for partners.

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Difficulties of funder involvement.

Power over resources; potential for grantees to hide weaknesses. Quality differs from grant management.

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Oak Foundation's Approach

Supporting grantees to access support from local providers.

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Need for Capacity Strengthening

Organizations need more than just financial resources to achieve their missions.

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Study Notes

Why Invest in Capacity Strengthening?

  • Oak's capacity strengthening work addresses the need of grantees who expect more than just grants and want help to strengthen their capacity.
  • Some funders disregard the organizational aspects of grantees, but there is always room for improvement, regardless of size or strength.
  • COVID-19, changing aid flows, and restrictive governments place more demands on civil society organizations.
  • In 2013, Oak began supporting capacity strengthening more intentionally to enhance grant-making as it can range from strategy and governance to internal systems and external relations management.
  • Approximately half of Oak's grants include capacity building and organizational development, with over 40 grants solely focused on capacity strengthening, amounting to 20% of total grant-making.
  • Enhanced leadership, systems, structures, and staff skills in grantees can lead to the most significant impact.

Benefits of Investing in Capacity Strengthening

  • Helps achieve better social justice outcomes, making organizations more sustainable, resilient, and effective
  • Results in effective organizational leaders who can make difficult decisions and enable staff to learn and adapt
  • Delivering meaningful, measurable, and sustainable results
  • Develops effective networks with strategies that complement the work of members
  • Creates intermediary grant-makers with the skills to support capacity building of their grantees effectively

Funder Roles in Supporting Capacity Building

  • There are three options, funders can provide capacity building inputs through program staff.
  • Contract capacity building providers to supply inputs to partners
  • Manage capacity building grants while letting partners contract providers
  • Funders' control over resources can influence their ability to play the first role, partners may hesitate to reveal weaknesses.
  • Direct involvement of funders may lead to superficial capacity strengthening.
  • Providing quality training, consulting, or coaching requires distinct skill sets.
  • Oak Foundation supports grantees in finding support from local providers and identifies high-quality inputs.
  • Oak is committed to supporting capacity strengthening, going beyond financial resources to help partners strengthen their capacity to achieve greater impact.

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