Organisational development (OD) investments build and strengthen a range of critical efficiency and growth-oriented capabilities that enable nonprofits to deliver greater impact. These include strategic planning, leadership development, finance and accounting, and human resources. (See “How to Build an Organisational Development Plan Resources” on The Bridgespan Group’s website.)
Research shows significant benefits to OD investment. Nonprofits that invested in OD grew their annual budgets twice as fast over a five-year period compared to nonprofits not making those investments.[10] They also doubled their programme output over a three- to five-year period[11] and became more financially secure.[12]
Funders increasingly recognise the catalytic role OD plays in unlocking a nonprofit’s impact potential. Investing in OD strengthens their nonprofit partners, thereby increasing the likelihood that funders and nonprofits will achieve their goals.[13] It helps when nonprofits identify and prioritise their OD needs and clearly communicate those needs to their funders. To help make this happen, funders can connect nonprofits with resources and advisors to help shape their OD priorities.
Make dedicated OD grants
Some funders provide OD-specific grants or dedicate a portion of broader grants for nonprofit partners to build and strengthen organisational capabilities. The Children’s Investment Fund Foundation and A.T.E. Chandra Foundation have dedicated OD functions that provide multiyear grants for this purpose. Forbes Marshall CSR and IndusInd Bank CSR earmark a percentage of their grant support towards OD and help their nonprofit partners identify OD needs that are most critical for their stage of growth.
Provide nonprofit partners with access to OD expertise
Funders can connect nonprofit partners with functional OD experts that provide either one-on-one advisory support or cohort-based services. Some funders tap in‑house talent for this purpose, while others engage external experts or intermediary organisations. The focus of the support can range from developing an overall OD plan to addressing specific needs (e.g. establishing a measurement, evaluation, and learning framework; strengthening financial planning capabilities).
For instance, Axis Bank Foundation, Children’s Investment Fund Foundation, and Forbes Marshall CSR have engaged intermediary organisations to provide OD support to their nonprofit partners. LGT Venture Philanthropy has a fellowship programme that selects experienced business professionals and places them with partner nonprofits for one year to support building or strengthening organisational capabilities. Other funders pursuing this pathway are IndusInd Bank CSR, Mahindra Group CSR, Mariwala Health Initiative, and Rohini Nilekani Philanthropies.
Fund initiatives that help nonprofits build their organizational Capabilities
In the aftermath of COVID-19, there has been a growing recognition of the importance of organisational strength and resilience for nonprofits to deliver and sustain impact. In 2021, the Grassroots Resilience Ownership and Wellness (GROW) Fund and Rebuild India Fund were launched to support grassroots nonprofits to build their organisational capacity and capabilities.
The EdelGive Foundation launched, with several other funders, the GROW Fund. The GROW Fund’s objective is to dispense Rs 100 crore (US $12 million) to build the capabilities and financial strength of 100 growth-ready grassroots organisations across India over a two-year period.[14] Similarly, Dasra, along with Tarsadia Foundation, launched the Rebuild India Fund to provide multiyear flexible funding and OD support to 100-plus grassroots nonprofits every year for a period of five years.[15] Other funders who support similar initiatives are A.T.E. Chandra Foundation, Ford Foundation, and Rohini Nilekani Philanthropies.
“Due to OD funding support, we hired fundraising personnel within our team that helped streamline internal processes and meet the high compliance requirements of donors and funders. Investing in OD capabilities such as fundraising and donor engagement has helped build long-term partnerships, grow fundraising efforts by 3x, increased our ability to support over 388 athletes from an earlier 180, and reduce leadership bandwidth on day-to-day operations to focus on strategy.”
