Study: 57% of Nonprofit Capacity Needs Get Little or No Support
NEW ORLEANS – October 13, 2026 -- Across 18 capacity domains, 57% of identified nonprofit needs received no or very little support, according to the first State of Capacity Building report from Catalyst Exchange. The survey sets a national baseline for tracking sector capacity over time.
The report, titled Closing the Capacity Gap, draws on input from 408 nonprofits, 101 intermediaries and 135 funders working in education and youth development. It also uses focus groups and interviews. Catalyst Exchange describes a sector squeezed by rising demand, funding cuts, burnout and AI transformation.
Funders and nonprofits agree on priorities, but money does not follow
Fund development (66%) and revenue strategy (52%) rank as the top nonprofit capacity needs, and funders name the same areas for support. Yet fewer than half of funders report funding capacity building. Only 19% of nonprofits received a grant designated for it in the past year.