Capacity building in non-profit organizations: How grant-making foundations strengthen their beneficiaries

The relationship between foundations and beneficiaries may also involve the exchange of best practices, not merely financial support for social projects. This study explores the role of grant-making foundations in enhancing the operational and organizational capacities of beneficiary organizations. Specifically, it focuses on the collaborative development of skills during the funding of social initiatives, including those in cultural sectors (such as art and theatre) and in support of vulnerable groups (such as minors, the elderly, and the unemployed). Data were gathered through questionnaires completed by both foundation staff and project leaders from funded organizations. The study examines how organizational capabilities relate to non-financial support, such as planning, programming, and performance monitoring tools used in measurement and reporting. Also, it assesses satisfaction with the impact and innovativeness of the supported projects. The findings indicate a positive association between the non-financial activities promoted by foundations during the grant-making phase and the improvement of technical skills, organizational processes, and social outcomes in recipient organizations. Overall, foundations are portrayed as enablers that provide not only financial aid but also operational support. These results contribute to the literature on the managerialization of philanthropy, highlighting how nonprofit organizations can benefit from practices typically associated with for-profit enterprises.

Keywords: Control systems, Innovation, Grant-making foundations, Beneficiaries, Capacity building, Questionnaires

Andrea Bafundi, Giacomo Boesso, Fabrizio Cerbioni, Capacity building nelle organizzazioni nonprofit: come le fondazioni d’erogazione rinforzano i propri beneficiari in "MANAGEMENT CONTROL" 2/2025, pp 39-60, DOI: 10.3280/MACO2025-002003