Investing in Resilience: Case Studies on nonprofit capacity building
Investing in NGO capacity can transform this sector
The ability of nonprofit organizations to create lasting change hinges significantly on their core capabilities. Often, these essential functions, such as communications, fundraising, talent management, and monitoring & evaluation (M&E), are underfunded or viewed as secondary to programmatic work. A series of case studies, supported by the ATE Chandra Foundation and published on IDR, argues a contrarian, yet empirically supported, view: strategic investment in core capacities is not merely an overhead, but the very engine of impact and sustainability in a social sector grappling with chronic underfunding and limited growth. The experiences of Vidhi Centre for Legal Policy, Universe Simplified Foundation (USF), Adhyayan Foundation, Reap Benefit, Arpan, and Tapasya, outlined in these case studies, offer compelling evidence for this view.
The Power of Proactive Communications
For any entity aiming to shape public discourse, clear communication is paramount. The Vidhi Centre for Legal Policy, a legal research organisation, initially perceived communications as a mere "implementation function" or a "defensive tool". A public backlash over their role in the Financial Resolution and Deposit Insurance (FRDI) Bill forced a re-evaluation; their core values and the public interest intent of their work were failing to reach their intended audience. The remedy was found not in external PR firms, often ill-equipped for nuanced, content-heavy research, but in an in-house communications team. This strategic pivot yielded significant returns: a five-fold increase in website views, a 62 percent growth in social media engagement, and widespread media citations. Crucially, Vidhi learned to integrate communications with research from a project's inception, allowing them to strategically leverage findings—as seen in their work on drug decriminalisation—to inform public thinking and move beyond mere reports gathering digital dust. The lesson is clear: communications must be fundamental to an organisation's strategy, not an afterthought.
Embedding Capacity: A Cultural Imperative
The Universe Simplified Foundation (USF), dedicated to STEM education for underserved students, offers a testament to embedding capacity building within an organisation's very DNA. Even with a small team, USF prioritised continuous learning and upskilling. A post-pandemic scaling-up, from 350 to 1,500 students, starkly underscored the need for pre-emptive investment in capacity to maintain quality. Founder Henna Khan personally sought out leadership and fundraising training. As the team grew, the need for a robust organisational culture became apparent, leading to structured processes for conflict resolution and clear roles, supported by programmes like Pravah’s Sanstha. The departure of a co-founder necessitated a deliberate effort to cultivate mid-level leadership from within, particularly challenging given USF's rural base and the difficulty in attracting senior talent. USF's success in continuous knowledge transfer, co-creation, and regular debriefs illustrates that capacity building demands not just financial outlay, but significant time and unwavering commitment from leadership, fostering a distributed decision-making and learning culture. Such investments were largely enabled by flexible grants from like-minded donors willing to fund non-programmatic costs.
Cultivating Fundraising Acumen
Fundraising, the lifeblood of nonprofit operations, often diverts founders from programmatic work. Adhyayan Foundation and Reap Benefit (RB) faced this conundrum. Adhyayan endured a near-fatal blow when its major donor withdrew during the pandemic, revealing the peril of single-funder dependency. Both organisations struggled to recruit suitable fundraising talent; experienced senior hires often recoiled from the painstaking "socks and shoes" groundwork—lead generation, meticulous research, and consistent follow-ups—vital for grassroots organisations. Success came from hiring early-career professionals with strong research and writing skills, who embraced this preparatory work. This freed founders for higher-level donor engagement. A disciplined process, combined with cultivating relationships, proved pivotal. Crucially, they actively worked to decentralise fundraising, embedding it into the organisational culture, for instance, by involving programme teams in proposals and annual team-wide campaigns. This distributed ownership and eased pressure on leadership, empowering them to negotiate terms with funders and even decline misaligned opportunities—a powerful mark of financial health.
Mastering Talent Management
Arpan, an organisation dedicated to preventing child sexual abuse, exemplifies how sustained investment in human capital underpins growth. Initially lacking formal HR processes, Arpan systematically built a robust talent management system as it expanded from 18 to 140 members. Beyond statutory compliance, Arpan offers discretionary benefits, including annual training allowances and a therapeutic allowance, acknowledging the demanding nature of their work and prioritising staff well-being. A key enabler of their exponential growth was the early development of a strong second line of leadership, hiring senior directors across programmatic and support functions like HR, finance, and M&E. This distributed leadership enabled parallel initiatives without compromising quality. Arpan fosters a culture of continuous learning through internal case study discussions and coaching, preparing staff for future leadership roles. The emphasis on clear values, open communication channels, and responsive feedback mechanisms reinforces a supportive environment where employees feel valued and heard.
The Efficacy of Robust M&E Systems
Tapasya, a grassroots nonprofit assisting vulnerable families in accessing government welfare schemes, demonstrates how comprehensive Monitoring and Evaluation (M&E) frameworks drive both impact and growth. From its inception, founders recognised M&E as essential for assessing impact and fostering employee growth, despite limited resources. They leveraged incubators and intermediaries to build capacity and develop robust M&E strategies encompassing both qualitative and quantitative impact. As Tapasya scaled its operations—from focusing on a single scheme to multiple, across diverse communities—a well-calibrated M&E system became indispensable. The adoption of tech-driven data collection proved transformative, enabling precise tracking of individual progress, field worker efficiency, and overall program outcomes. This automation enhanced accountability internally and fostered trust with external partners through transparent, real-time data. Tapasya's journey underscores that M&E practices and program design must adapt with organisational expansion, and that funders should grant the freedom to experiment and evolve, fostering a co-learning environment between donors and nonprofits.
Enduring Principles for a Stronger Sector
These diverse case studies collectively articulate a singular, powerful message for India's social sector: capacity building is not merely an expense, but a strategic investment yielding disproportionate returns. Funders, therefore, must reconsider their approach, moving beyond narrowly prescriptive programmatic funding to embrace flexible, long-term support for core organisational capabilities. And nonprofits must consciously focus on building these capabilities, looking beyond short-term fundraising focus towards long-term resilience and growth.
The imperative is to invest in the right talent—often early-career professionals willing to tackle foundational work—and to empower them with distributed ownership over functions like fundraising and communications. Embedding these critical functions deeply into the organisational culture, fostering continuous learning and adaptability, and prioritising the well-being and professional growth of one's team, are not luxuries but necessities for nonprofits aspiring to achieve sustained, amplified impact. The pathway to a more resilient and impactful social sector lies in ensuring that good intentions are matched by robust institutional capabilities.