Created By: Tal Alter and Steve RochlinMay 29, 2026 Professional sports franchises possess a uniquely powerful lever to generate business returns – stronger fan engagement, sponsorship value, franchise valuation, and community capital – that most are not yet deploying strategically. That lever is community impact investment, the intentional, strategically integrated deployment of a franchise’s civic assets toward defined community outcomes and measurable business return. Realizing that return starts with organizational alignment – ownership committed to community impact as a genuine business priority, leadership empowered to execute on that commitment, and the community impact positioned as a core business function. Alignment creates the conditions, but execution determines the return. When impact strategy, program quality, and external communication work together, the franchise captures both the community benefit and the business dividend. I. The Argument Professional sports teams remain among the few institutions still rooted to place and community: anchored by stadiums and arenas and inextricably tied to the civic health, identity, and culture of cities and regions. Community engagement activities among franchises date back to the inception of professional sports leagues. Yet, in our experience, teams systematically under-leverage the power of these activities to create impact. Most strategies do not optimize the potential to benefit communities. In turn, they miss out on the very real opportunities to generate tangible financial returns. And the barrier is rarely the size of the investment but the strategy behind it. II. What the Research Shows The business case for strategic social impact investment is no longer theoretical. Project ROI, the most comprehensive research effort to date on the financial returns of corporate community investment, finds that companies with strategically integrated social impact programs generate measurable returns across multiple dimensions: Increased valuation of up to 36% Sales growth of up to 20% in both B2C and B2B contexts Increased profitability of up to 20% Reduced financial, market, regulatory, and/or reputation risks by up to 30% Reduced employee turnover up to 57% Lower financing costs by 10-14% While the level of financial support matters, the defining variable to maximize return is the degree of strategic integration: how community investment aligns with organizational priorities, connects to stakeholder expectations, and is measured against defined outcomes. For example, Hewlett Packard Enterprises (HPE) credits nearly $600 million in new sales to its social impact work. By demonstrating the power of technology in supporting public schools, the company was able to deepen new and existing client relations that converted into revenue, all while supporting the education of students in low-income communities. III. Why Sports Franchises Are Differently Positioned Professional sports franchises occupy a singular place in civic life. The identity of millions is inextricably linked to their teams, generating a level of passion that no amount of marketing can manufacture. Fans inherit their allegiances and pass them on to their children. Research confirms what any franchise executive already knows: loyalty among the core fanbase has no meaningful relationship to on-field performance. It persists through losing seasons, leadership and player turnover, and decades of heartbreak. The Project ROI findings apply across industries. But beyond fan loyalty, professional sports franchises bring a civic asset base that is singular in its depth and reach. A major professional sports franchise also controls: Facilities that function as civic anchors, often situated in the heart of urban markets surrounded by under-resourced communities Convening power across sectors — the credibility to bring corporate, philanthropic, civic, and government leaders to the same table around a shared agenda Players with genuine cultural influence, whose authentic community presence carries weight that no marketing budget can buy A philanthropic platform that, if fully activated, can mobilize community capital at extraordinary scale Community and foundation teams do meaningful, often remarkable work, but without front-office alignment, a clear theory of change, and defined outcomes, the larger potential stays untapped. Compounding the strategic gap is a visibility problem. Teams routinely communicate their community work without a strategy for how that visibility connects to fan affinity, sponsorship value, or community outcomes. Research shows that when fans learn about a team’s community investment, most report stronger affinity for the franchise. Among non-fans, awareness of community work meaningfully increases their likelihood to engage with the team. The community platform, when made visible, deepens affinity. Notably, this is true for consumer relationships with brands in general. Project ROI finds that when consumers are aware of a brand’s social impact, and they can grasp the logic of how the brand’s community activities align with community needs and brand attributes, their loyalty, affinity, and purchasing intent increase. Franchises that have yet to point this asset in the right direction with strategic intent and adequate resources are leaving that return on the table. And because it proves most valuable when on-field results are weakest, it functions as a counter-cyclical lever no other part of the business can offer. IV. The Business Case for Sports Franchises Fan loyalty alone does not maximize revenue for franchises. Fan spending most often accompanies winning. When teams struggle, loyalty may persist, but spending on tickets, cable packages, and merchandise usually wanes. Understandably, franchises invest heavily to convert passive attachment into active engagement through marketing initiatives, stadium experience, and fan development programs designed to build relationships that can withstand difficult times. The translation requires specificity across the metrics that matter most to a franchise: fan engagement and retention, sponsorship value, municipal relationships, and long-term franchise valuation. Fan engagement and retention Community identity creates loyalty that winning alone cannot sustain. Fans who connect a team to meaningful civic work report stronger affinity and engagement that holds up through losing seasons. For franchises in rebuilding cycles, authentic community engagement and impact can serve as the most reliable way to maintain sentiment while performance catches up. For franchises performing well, a stronger community identity expands the total addressable fan market, reaching audiences whose entry point is civic or community connection rather than the sport itself. While robust longitudinal data on American franchises is still emerging, research on European clubs finds that community impact builds fan trust and drives intention to attend. A study of Real Madrid found that the club’s community investment activities positively influenced fan commitment, and that keeping supporters updated on social impact initiatives helped build emotional attachment and brand love that translate into loyalty. Liverpool FC’s “Red Neighbours” program and the LFC Foundation, focused on the L4 postcode around Anfield, have similarly been observed to strengthen affinity and drive ticket purchases. Sponsorship value Corporate partners face growing pressure to demonstrate genuine community impact, not just association with a well-known brand. A franchise with a credible, strategically integrated civic platform offers something qualitatively different from logo placement: alignment with a civic mission, in a market those partners are also trying to reach. That changes both the nature and the economics of the partnership conversation from transactional to strategic. A research study found that, compared with conventional sponsorship formats, social-impact linked sponsorship generates stronger positive impact on attitudes and purchase intention among home-team supporters, making sponsor inventory more attractive to brands and more effective with fans. Municipal and civic value Teams that address social and economic barriers at scale create measurable value for the cities that host them—in workforce development, neighborhood stabilization, public health, and youth outcomes. That translates into stronger relationships with municipal and state governments, more favorable terms in stadium negotiations and community benefit agreements, and a civic standing few, if any, institutions can match. The franchise that is genuinely woven into the fabric of civic life is a partner, not just a tenant, of its city. Franchise value Civic reputation is a balance sheet asset even where accounting does not capture it. For investors, the risk reduction dimension may be equally compelling: teams with credible civic platforms face lower reputational exposure, stronger government relationships, and more resilient revenue streams when on-field performance disappoints. Ownership groups that have built genuine civic platforms—seen as indispensable to their markets—command valuation premiums and face lower reputational risk. In an era of increasing scrutiny around sports ownership, community benefit agreements, and public stadium financing, civic standing carries new weight. For example, as the Golden State Warriors planned to move from Oakland to San Francisco to open the Chase Center in 2019, the team used its foundation as a key tool to gain vital government and civic support in a politically complex environment. The Golden State Community Foundation has invested over $52 million since 2012, including a record $4 million in 2025 alone, much of it targeted at Bay Area youth and minority-owned small businesses. Observers credit those activities for blunting local opposition to the Chase Center; the franchise is now valued at approximately $10.8 billion. The Atlanta Falcons, FC Cincinnati, Los Angeles Clippers, and Milwaukee Bucks are among a growing number of teams that have used substantial commitments to community investment to secure new stadium approvals, with corresponding effects on franchise valuations. V. What Strategic Integration Looks Like Across professional sports, the most common model looks something like this: a foundation with dedicated staff, an annual grantmaking budget, player appearances coordinated through community relations, a signature program or two, and a well-produced impact report. This is substantive work, reflecting genuine commitment, and it represents a meaningful investment in the communities these franchises call home. Strategic integration looks different. Not necessarily more expensive, but more intentional. It means community impact is seen as a priority investment for the business of the franchise, while resourced and measured accordingly. What distinguishes organizations that have made this transition: A theory of change that connects community investment to civic outcomes and business value—championed by leadership across the organization, not held only by foundation staff and board members Front-office alignment—community impact appears on the agenda in the same rooms where sponsorship, ticketing, and franchise development are discussed, as part of an integrated business plan rather than a parallel track A brand communications function that treats community work as core to the franchise narrative in a way that is unmistakable to those who follow the team Measurement that captures community impact, business return, and the relationship between them Each of these is a structural condition. Where they exist, the work succeeds, typically led by a senior executive with a community impact remit, strategic alignment with ownership and business leadership, and the autonomy to operate with nonprofit discipline while embedded in the franchise’s commercial business. Where those conditions are missing, no hire fixes it. The strategy stays siloed from the business, and both community impact and business results go unrealized. VI. The Horizon The framework above describes what’s possible for any franchise that chooses to invest in its civic platform with intention. The returns are meaningful, the path is navigable for franchises willing to do the strategic work, and the teams doing this well are already seeing the difference. But there is a further horizon—one almost no franchise has yet reached—that represents the largest opportunity in this space. A franchise that fully activates its civic asset base becomes something more than a team with a strong foundation. It becomes a platform capable of catalyzing an entire community of philanthropy, convening individual donors, corporate partners, player philanthropists, and civic capital around a shared agenda for its market. At full expression, the franchise becomes a civic institution built around a city’s most powerful attention and identity platform. This is not a requirement. Every step along the path described in Section V creates genuine value and genuine impact. Good is good. But for ownership groups with the vision and the appetite, the ceiling is higher than the field has yet imagined. The franchise that reaches it will have built something that outlasts any season or player tenure and persists through leadership transition. VII. The Call to Action The research is clear. With the right strategy, the right leadership, and the right organizational commitment, the path from where most franchises are today to where the best of them could be is within reach. And for the philanthropic and civic partners best positioned to do this work alongside franchises, there has rarely been a more powerful platform with which to align. For ownership groups, team presidents, and the leaders driving this work inside franchises: community investment may be worth more to your business, and to your market, than you might imagine. The opportunity is to treat it like every other investment the franchise makes: with strategy, alignment, and accountability for the return. The franchises that do can build something lasting: a civic identity woven into the fabric of their market, a community of philanthropy organized around their platform, and a franchise valued for what it brings to the city it calls home beyond wins and losses. The place to start is a clear-eyed assessment of where your franchise is today—what you’re investing, what you’re communicating, and what you’re leaving on the table. Orr Group partners with a wide range of nonprofits, including professional sports organizations, to design and implement civic strategies that are focused, authentic, and long-term. Get in touch to learn more about our unique approach. Contact Us Tal Alter is a Managing Director at Orr Group. With over 20 years of experience creating, leading, and scaling programs and teams, Tal brings his passion for sports, leadership, and community development to all aspects of his work. Before joining Orr Group, Tal served as Chief Executive Officer of Washington Nationals Philanthropies, where he oversaw the MLB team’s official charitable arm. Steve Rochlin is the CEO and Founder of Impact ROI. Steve has over 20 years of experience in sustainability and corporate responsibility. He has advised leading companies across a wide variety of industry sectors, associations, NGOs, multi-lateral organizations, grant-making institutions, and government agencies on how to improve sustainability performance in a way that drives competitive success.
What is Nonprofit Capacity Building? + Best Practices to Know best practices,capacity building,nonprofit Published Date 2026 What is Nonprofit Capacity Building? + Best Practices to Know Created By: Campbell Lake Published July 13, 2026 For nonprofits, capacity building is the difference between an organization that sustains momentum through leadership transitions, campaign cycles, and funding shifts and one that stalls every time the workload outpaces the headcount. True capacity allows organizations to turn their mission into a sustainable enterprise. This guide breaks down what that looks like in practice, and what separates organizations that get it right from those that keep cycling through the same constraints. Table of Contents: Nonprofit Capacity-Building FAQs Best Practices for Nonprofit Capacity Building How to Choose a Partner for Nonprofit Capacity Building Orr Group: The Best Nonprofit Capacity-Building Partner Nonprofit Capacity-Building FAQs What is nonprofit capacity building? Capacity building centers on developing and sustaining four critical pillars of an organization: Case, Leadership, Donors, and Systems. Each of these pillars is distinct, but they all connect to support your mission. Here is a quick look at these pillars: The Case pillar covers how an organization articulates its mission, demonstrates need, and makes the argument for philanthropic investment. The Leadership pillar encompasses the executive team, board engagement, and the organizational culture that either accelerates or impedes growth. The Donors pillar addresses pipeline development, cultivation, and stewardship infrastructure. The Systems pillar covers the technology, workflows, and data management that allow the other three to function at scale. This is why approaching organizational growth holistically is vital. Focusing investments in one area while neglecting the others dilutes your efforts and produces diminishing returns. Why does nonprofit capacity-building matter? Capacity building drives long-term sustainability and prepares your organization for growth. Investing in your organization’s capacity is crucial because it: Drives measurable revenue growth. Capacity investments directly correlate with an organization's ability to expand its pipeline and build a sustainable financial model. Scales mission impact. Strengthening your internal systems and leadership allows you to translate financial growth into broader, more effective programmatic reach. Secures funder confidence. Major donors and board members need to see concrete operational maturity and financial discipline before they commit to transformational investments. Overcomes organizational plateaus. It provides the necessary infrastructure to break through the natural growth ceilings that even the most passionate teams might hit. Maximizes return on investment. Strategic capacity building ensures every internal investment maps to a concrete return, such as increased donor retention, reduced administrative overhead, or higher average gift sizes. How do nonprofits know when they need to build capacity? Recognizing the need for capacity building often starts with identifying the operational roadblocks that are holding your mission back. If your organization is experiencing any of the following challenges, it is likely time to invest in your internal infrastructure: The strategic plan lacks internal bandwidth for execution. You have a compelling vision and a solid roadmap, but your team simply does not have the time, skills, or systems to actually implement it. High staff turnover. Constant burnout and frustration may drain your organization’s resources and lead to the loss of valuable institutional knowledge. Continually scarce resources. You are constantly struggling to secure the unrestricted funding needed to move beyond day-to-day operations and achieve operational growth. Major initiatives are continually deprioritized due to a lack of ownership. Mission-critical projects keep falling through the cracks because no one has the clear authority or dedicated time to champion them to completion. Stalled capital campaigns. When fundraising efforts have lost momentum or plateaued, it is often a sign that the infrastructure, staffing, or donor pipeline is not robust enough to support your goals. Long-vacant leadership roles. Prolonged vacancies create leadership vacuums that hinder decision-making and stall overall progress. What are the challenges of building nonprofit capacity? The primary challenges of building nonprofit capacity involve overcoming limited staff bandwidth for strategic execution, avoiding mismatched, cookie-cutter frameworks, and managing the complex rollout of new technology. Building capacity successfully requires tailored strategies rather than quick fixes. Here are the most common hurdles you may encounter: Strategic plans becoming shelfware. Investing in a planning process without ensuring your staff has the bandwidth to implement it turns a well-crafted plan into an added burden rather than a true capacity solution. Relying on cookie-cutter approaches. Generic templates and frameworks that ignore your specific budget, donor base, operational scale, and mission context routinely fail during implementation. Underestimating technology implementation. Integrating a new system, like a CRM, requires dedicated project management to achieve full adoption. Without the right support or external bench strength, fundraisers end up working around the system, data quality degrades, and core revenue activities can stall. Best Practices for Nonprofit Capacity Building Great programs alone don’t sustain a nonprofit; strong infrastructure does. Building capacity means stepping back from daily execution to invest in the systems, people, and fundraising operations that actually keep the organization running. The following practices give your team the structure they need to scale your mission effectively. Develop a Data-Driven Case for Support Articulating your organizational need earns donor confidence that their investment will yield a verifiable return. Strengthen your case for support with these steps: Start with a development audit to evaluate how the current case for support aligns with the philanthropic landscape. Where are the gaps between what the organization communicates and what funders in this space prioritize? What do existing donors say about why they give, and does that language match how leadership talks about the organization publicly? Root all messaging in tangible impact metrics, such as outcome rates, cost-per-beneficiary, program reach, and year-over-year growth, to demonstrate operational discipline and mission alignment. Working with a fundraising advisor during this phase can accelerate the process and surface blind spots that internal teams tend to miss. Build the case for long-term adaptability because the strongest cases for support aren’t static documents. They’re frameworks capable of absorbing a pivot, accommodating a capital campaign narrative, or being tailored to a specific donor segment without losing organizational coherence. Align Leadership and Build Staff Capacity Sustainable revenue generation requires organization-wide alignment and dedicated staff capacity. Every team member, from executive leadership to program staff, must be on the same page and equipped to actively support fundraising efforts. Sharing this responsibility breaks down internal silos, ensures a consistent narrative in donor relationships, and is critical for maintaining long-term financial health and operational momentum. Follow these steps to build shared capacity: Build a culture of philanthropy through securing genuine buy-in from the executive team and board. This means actively participating in donor relationships, campaign stewardship, and shaping the organizational narrative. Maintain operational momentum during transitions. The instinct to hold steady and wait for a permanent hire can cost you six to twelve months of forward progress. Filling staffing gaps with interim HR and operational support that can integrate immediately into workflows preserves momentum and prevents existing staff from absorbing responsibilities that fall outside their roles. Implement continuous training programs for board members and senior staff. These programs act as a hedge against organizational stagnation, and they signal to supporters that leadership is actively investing in its capacity to steward significant gifts. Build a Sustainable Donor Pipeline While prospect research is a critical first step, true capacity building focuses on managing a holistic donor pipeline. Sustainable revenue requires internal infrastructure that consistently moves prospects from initial identification to long-term stewardship without creating operational bottlenecks. Follow these steps to maintain a healthy pipeline: Operationalize your cultivation strategy. Research means little if prospects stall early in the pipeline. Building staff capacity allows you to transition seamlessly from passive identification into active campaign execution, ensuring prospects are consistently engaged and moved toward solicitation. Systematize stewardship and upgrades. A well-maintained pipeline doesn't end at the first gift. Invest in the team skills and processes required to retain current supporters and strategically elevate them into higher giving tiers, seamlessly integrating major and legacy gifts into your ongoing portfolio management. Centralize your pipeline tracking. Capacity building means implementing the right systems to monitor prospect movement across every stage. By institutionalizing your infrastructure in a CRM, you prevent donors from falling out of the pipeline during staff transitions and maintain clean data for future qualification. Optimize Tech Systems and Infrastructure Technology is not the answer to a capacity problem, but it does make every other solution more executable. Some common tech projects to take on during capacity building include: Evaluating data quality and accessibility. Conduct a database assessment to ensure your information is clean, consistently formatted, and easily extractable. Data that cannot be pulled into a useful report is not an operational asset. Auditing internal CRM workflows. Review your current processes to determine how fully the platform is being used. Ensure it provides a complete view of the donor lifecycle, from initial identification through the initial donation to long-term stewardship. Integrating back-office automation strategically. Examine where AI and automation can reclaim administrative hours (such as report generation and data hygiene), so your team can redirect that time toward frontline fundraising efforts. Always ensure the technology enables relationship-building rather than substitutes for it. Set Tangible, ROI-Focused Goals Achieving large-scale growth means treating capacity-building goals the same way a rigorous finance function treats revenue targets: specific, measurable, and tied to a defined timeline. To develop these goals, follow these steps: Translate large-scale ideas into daily operational steps. Operational goals aren’t useful if you can’t act on them. For instance, a development program might translate a monthly fundraising goal into a quota for donor meetings and a defined number of proposals in active development. Measure success against financial and operational metrics. Whether a capacity initiative is producing results should be visible in your data. Every decision and goal must be data-driven, whether you’re tracking donor retention rates, proposal volumes, or gift size trends. Match the roadmap to resource constraints. A plan built on a headcount or budget that doesn’t yet exist is just a forecast, not an operational strategy. Every capacity goal should map directly to what the organization can realistically execute now, with specific gaps named and a clear plan for closing them. Build a sustainable revenue model. This requires mapping every investment to a concrete return—such as increased donor retention, an expanded pipeline, reduced administrative overhead, or higher average gift sizes—and establishing rigorous key performance indicators (KPIs) prior to any capacity project to objectively measure financial reality against aspiration and course-correct before gaps become structural. Leverage Outside Support Because internal teams are often consumed by daily operations, outside support provides the bandwidth and expertise needed to actually build new infrastructure. Use these four criteria to evaluate potential partners and choose one that will move your organization forward: Prioritize execution over mere analysis. When internal teams are already stretched thin, the value of additional strategic guidance drops sharply if there is no one available to implement it. If your organization has a clear direction but lacks the people to act on it, seek partners who provide tangible bandwidth, not just more reports. Adopt a collaborative, embedded workflow. Integrate external professionals directly into your daily workflows rather than positioning them as outside advisors available only for periodic check-ins. This close integration ensures your partner understands your mission thoroughly and can provide highly tailored, proactive support. Fill specific technical gaps with dedicated professionals. Offload mission-adjacent workflows, such as database administration, CRM implementation, or executive search, to specialized external pros. This provides immediate operational relief and keeps your core team focused strictly on revenue-generating activities. How to Choose a Partner for Nonprofit Capacity Building The difference between a capacity-building partner that can advise and one that can actually move your organization forward is significant, and it rarely surfaces until the engagement is already underway. These four criteria focus the evaluation on what actually determines whether a partnership produces results. Define your “execution” goals. Before evaluating any external partner, align the executive team on whether the organization needs a strategic roadmap or simply the bandwidth to implement an existing one. If you need a roadmap, prioritize partners with proven strategic and diagnostic expertise. If you just need bandwidth, focus your evaluation on their actual execution capabilities. Evaluate partnership. The most effective capacity-building partnerships function as reciprocal, hands-on extensions of the internal team. Ask directly whether the firm has the capacity to be embedded within your organization’s operational workflows. Firms that simply deliver a strategy document and leave are providing consulting, which won't fill a gap in execution. Ensure holistic, cross-departmental expertise. Capacity problems are rarely isolated, meaning surface-level fixes often result in recurring constraints. Evaluate whether a prospective partner can operate across multiple domains simultaneously, such as conducting executive searches while rearchitecting data systems. A single-service vendor might miss that a fundraising challenge actually originates in HR or your back-office systems. Seek a partner willing to challenge the status quo. The best partners will challenge your existing strategies and identify bottlenecks that your leadership may have normalized. Prioritize partners who take the time to understand your specific context instead of relying on cookie-cutter frameworks. You should select a partner who asks hard questions and holds leadership accountable. Remember that capacity building is a continuous process of aligning your internal engine with your external ambitions. Your infrastructure needs to grow just as fast as your vision. Choosing the right partner comes down to one important question: Do you need more advice, or do you need a partner to share the workload? Orr Group: The Best Nonprofit Capacity-Building Partner At Orr Group, we know that true capacity building requires hands-on execution. We embed our team of fundraisers and systems experts directly into your organization. By acting as an extension of your team, we provide the immediate people and resources you need to advance your mission. Wrapping Up Most nonprofits already have a strategic direction. What they lack is the infrastructure, people, and operational bandwidth to execute consistently—across leadership transitions, campaign cycles, and the inevitable friction that comes with scale. Capacity building is the work of closing that gap. The organizations that treat it as a core operational priority are the ones that compound their impact year over year. Additional Resources Capital Campaigns: A Strategic Guide for Nonprofits: Are your internal systems prepared to handle the data and operational demands of a multi-year, transformational fundraising effort? Read this guide to learn how to master the feasibility phase, upgrade your prospect research, and shift passive donors into active investors. AI for Nonprofits: Tools and Tactics to Scale Your Impact: Is your organization maximizing AI to automate administrative workflows without compromising sensitive donor relationships? Explore this article to discover how to build a responsible AI usage policy, properly train your staff, and reclaim hours for high-ROI fundraising. How to Master Strategic Planning for Nonprofit Organizations: Does your strategic plan prevent implementation stagnation by treating your nonprofit with a rigorous business mindset? Look into this resource to learn how to conduct operational assessments and build an accountable, data-backed roadmap that drives sustainable growth. Campbell Lake drives Orr Group’s marketing and communications efforts as a member of the Growth Team. She plays a key role in expanding the company’s brand presence by creating content, managing social media accounts, preparing marketing materials, planning events, and more.
Why Philanthropy is Now an Executive Imperative for Healthcare Fundraising Published Date 2026 Why Philanthropy is Now an Executive Imperative for Healthcare As healthcare margins tighten, philanthropy is becoming a strategic imperative—fueling innovation, resilience, and long-term financial sustainability for health systems.
Fundraising Strategies for Nonprofits and How to Get Started Fundraising,Strategy Published Date 2026 Fundraising Strategies for Nonprofits and How to Get Started Effective nonprofit fundraising takes more than creating a donation page and calling it a day! Learn how to execute savvy fundraising strategies for nonprofits.