This chapter describes the new capacity builders in the philanthropic and social-investment arenas. What characterizes these new capacity builders is their focus on organizational sustainability and scaling, with special emphasis on the acquisition of growth capital and earned income strategies. Included are high-engagement funders (also known as venture philanthropy funders) and specialty sustainability-oriented capacity builders. The chapter discusses the growing scope and scale of the new capacity builders and details the basic mechanics they utilize and the challenges they face. These challenges include the limitations of knowledge and experience, overly narrow approaches to identifying capacity needs, inappropriate measurement plans, unsuccessful exit strategies, difficult dynamics/power imbalances, organizational readiness, cultural fit, and insufficient capacity of the capacity builders. The chapter closes with a discussion of the track record of the new capacity builders to date and concludes that the high-engagement funder approach to building capacity seems to be the most successful.
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