Investing in the Future: Supporting Nonprofit Sustainability and Capacity Building
Investing in nonprofit sustainability is one of the most generous and strategic choices a donor can make.
Learn how you can help build stronger nonprofits for a more resilient, equitable community in the final part of our series, Activating in Critical Times. Read part 1 on identifying needs, part 2 on impactful giving and part 3 on personal advocacy.
In urgent times, it’s natural to focus on immediate needs — keeping families housed, students supported and meals on the table. But the future of our communities also depends on something less visible and just as vital: the strength and stability of the organizations doing the work.
For nonprofits to thrive — not just survive — they need more than short-term support. They need investments in their infrastructure, leadership and capacity to adapt. These are the building blocks of long-term impact, and they’re often overlooked in traditional giving.
At the Saint Paul & Minnesota Foundation, we believe that investing in sustainability is one of the most generous and strategic choices a donor can make.
What Is Capacity Building, and Why Does It Matter?
Capacity building refers to the behind-the-scenes work that allows nonprofits to operate efficiently, innovate and respond to change. This includes:
- Staff recruitment, retention and professional development
- Technology upgrades and cybersecurity systems
- Strategic planning and financial management
- Program evaluation and learning tools
- Equity training and organizational development
- Investments in marketing and storytelling to convey their impact
When nonprofits have the resources to strengthen these areas, they can serve more people more effectively and remain resilient through unexpected challenges.
Without this support, even the most impactful missions can become fragile. Programs can suffer, staff can burn out and the ability to plan for the future shrinks.
In short: Capacity building sustains the people and systems that make impact possible.
The Long View: Giving Beyond the Crisis
Over the past several years, nonprofits have faced an unprecedented series of disruptions — from a global pandemic and economic instability to changing donor behaviors and shifts in government funding. Many organizations are still operating in response mode, trying to meet surging demand with overstretched resources.
Yet even as needs continue to grow, many nonprofits struggle to secure funding for anything beyond direct services. Many grants and individual gifts are restricted, tied to specific programs or short-term outcomes.
This leaves little room to strengthen core operations, the very foundation that keeps organizations running.
As a donor, shifting even a portion of your giving toward sustainability-focused support can make a profound difference. It helps nonprofits build capacity now, while positioning them to weather future storms.
Strategic Giving in Action: Capacity-building Funds at the Foundation
At the Foundation, we partner with donors who want their giving to be as effective and forward-looking as possible. We recently launched the MN Forward Pooled Fund with several other foundations and contributions from fundholders. This fund will support efforts that enhance the long-term resilience of Minnesota nonprofits, with a focus on equity and inclusion.
We also offer the Management Improvement Fund, a long-standing fund that helps nonprofits strengthen their internal operations through small grants for strategic planning, leadership training, evaluation systems and more. These grants are especially valuable for small and mid-sized organizations that rarely have the unrestricted dollars to fund this work on their own.
Donating to funds like these is a powerful way to support nonprofit health beyond a single program or fiscal year. It sends a clear message: “We believe in your mission, and we want you to succeed for the long haul.”
“As a donor, shifting even a portion of your giving toward sustainability-focused support can make a profound difference. It helps nonprofits build capacity now, while positioning them to weather future storms.”
Questions to Guide Your Giving
If you're considering how to incorporate sustainability into your giving strategy, here are a few questions to reflect on:
- What does sustainability mean to you in the context of community impact?
- Are the organizations you support equipped with the tools, staff and systems they need to adapt and grow?
- Have you asked a nonprofit what they need most to thrive, not just survive?
- Can you make an unrestricted gift or support a fund that builds nonprofit infrastructure?
These questions are not only strategic, they’re generous. They reflect a mindset that’s focused on trust, partnership and long-term impact.
How Equity and Nonprofit Sustainability Go Hand in Hand
It’s also important to recognize that sustainability is deeply tied to equity.
BIPOC-led, rural and smaller community-based nonprofits often face the greatest funding barriers, including limited access to unrestricted or capacity-building dollars. By intentionally supporting these organizations and trusting their leadership, donors can help close the gap in philanthropic investment and amplify the effectiveness of organizations rooted in the communities they serve.
A resilient nonprofit sector is one where all organizations, not just those with the largest budgets or deepest networks, have the resources to lead, innovate and grow.
Use the Worksheet to Align Your Values and Actions
To help guide your giving strategy, we have created a simple, printable worksheet that accompanies this series.
In the section related to nonprofit sustainability, you'll be invited to:
- Reflect on your values and long-term giving goals
- Consider how your giving could evolve to include infrastructure support
- Identify nonprofits or funds that align with your vision
We hope this worksheet sparks meaningful insight and action.
Investing in Strength. Investing in Possibility.
Capacity building may not always be visible, but its effects are unmistakable. It’s the reason a youth center can expand its after-school programs, or why a housing nonprofit can scale up to serve more families. It’s what enables a new leader to step in with confidence, backed by systems that work.
When you invest in nonprofit sustainability, you’re not only funding today’s work — you’re helping shape tomorrow’s possibilities.
So, as you consider your giving this year, we invite you to look beneath the surface. Support the infrastructure. Fund the vision. Trust the leaders. And remember that some of the most impactful gifts are the ones that help nonprofits breathe, plan and grow.
Let’s not just respond to urgent needs — let’s invest in lasting change.
“Support the infrastructure. Fund the vision. Trust the leaders. And remember that some of the most impactful gifts are the ones that help nonprofits breathe, plan and grow.”
Join Us for a Conversation About Activating in Critical Times
If you’d like to discuss how capacity building can have an impact, join us for a virtual conversation on Monday, August 25.
You'll hear from Senior Vice President of Community Impact Alfonso Wenker and Senior Vice President of Philanthropic Services Jeremy Wells as they guide us through key takeaways from the blog series.
Together, we'll explore your questions, share insights and open a space for thoughtful conversation with fundholders and others eager to connect in this time.
Morning Conversations: Activating in Critical Times
8:30 – 9:30 a.m.
Monday, August 25
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