Writing Capacity Statements for Grant Applications

What Is a Capacity Statement?

A capacity statement is a concise document — or a section within a grant proposal — that demonstrates your organization's ability to successfully execute the proposed project. It answers a fundamental question that every funder asks: "Can this organization actually do what it is proposing?"

Funders take on risk when they award grants. They are entrusting your organization with resources and expecting results. A strong capacity statement reduces the funder's perceived risk by providing evidence of your track record, expertise, infrastructure, and management capabilities.

Some funders request a standalone capability statement as part of the application package. Others expect organizational capacity to be woven throughout the proposal narrative. In either case, the principles are the same: be specific, be honest, and connect your capabilities directly to the requirements of the proposed project.

Core Components

Mission and History

Begin with a brief description of your organization's mission, when it was founded, and its primary areas of work. Keep this section short — two to three sentences are sufficient. The goal is to establish context, not to tell your entire story. Funders want to know that your mission aligns with the project you are proposing, not to read your annual report.

Relevant Experience

This is the most important section. Describe specific projects your organization has completed that are similar in scope, scale, or subject matter to the proposed project. For each project, include the funder, the project period, the budget, the population served, and the key outcomes achieved.

Quantify your results whenever possible. Instead of stating that you "successfully implemented a job training program," write that you "trained 450 adults over three years, with 78 percent obtaining employment within six months of program completion." Numbers demonstrate both competence and accountability.

Staff Qualifications

Highlight the qualifications of key personnel who will work on the proposed project. For each person, provide their title, relevant credentials, years of experience, and specific skills that apply to this project. If your project director has managed similar grants, say so. If your evaluator has published in the relevant field, mention it.

If you plan to hire new staff for the project, describe the qualifications you will require and your recruitment strategy. Funders need confidence that you can assemble the right team even if key positions are not yet filled.

Organizational Infrastructure

Describe the systems and resources that support your operations: financial management systems, accounting practices, audit history, information technology infrastructure, physical facilities, and administrative staff. If your organization has passed a single audit or has an established indirect cost rate, mention these as indicators of fiscal responsibility.

For research organizations, describe your laboratory facilities, computing resources, animal care programs, IRB processes, and other infrastructure relevant to the proposed work.

Partnerships and Collaborations

List the key partnerships that support your work. Describe the nature of each partnership, its history, and how it strengthens your ability to deliver the proposed project. If your community health project relies on referrals from local clinics, describe that relationship and include data on referral volume.

Partnerships are especially important for smaller organizations that may not have every capability in-house. A well-constructed network of partners can compensate for gaps in organizational capacity and demonstrate a collaborative approach to problem-solving.

Governance and Leadership

Briefly describe your governance structure — board composition, leadership team, and any advisory bodies. If your board includes members with relevant expertise (financial management, program evaluation, subject matter knowledge), mention them. Strong governance signals organizational stability and accountability.

Tailoring to Different Contexts

Federal Grants

Federal applications often include a specific section for organizational capacity or institutional resources. Follow the format and page limits specified in the funding opportunity announcement. Address the specific evaluation criteria related to organizational capacity — these are often listed separately from the scientific or programmatic criteria.

Foundation Proposals

Foundation proposals may not have a dedicated capacity section, but organizational credibility matters equally. Weave evidence of capacity throughout your proposal: in the project description (demonstrating that you have done similar work before), in the personnel section (showing that you have the right team), and in the budget narrative (showing that you have realistic cost estimates based on experience).

Government Contracts

If you are pursuing government contracts rather than grants, a standalone capability statement is often required. These documents are typically one to two pages and follow a structured format: core competencies, past performance, differentiators, and company data (DUNS number, cage code, NAICS codes, certifications).

Writing Tips

Be specific and evidence-based. General claims about your excellence are not persuasive. Specific data about your performance is. Replace "we have extensive experience" with "we have managed twelve federal grants totaling $4.2 million over the past five years with zero audit findings."

Connect capacity to the proposed project. Every capability you describe should relate directly to something the proposed project requires. If the project requires data collection in rural communities, highlight your experience collecting data in rural settings. Irrelevant capabilities waste space and dilute your argument.

Acknowledge gaps honestly. If there is an area where your capacity is developing, acknowledge it and describe your plan for addressing it — through partnerships, training, or hiring. Reviewers appreciate honesty, and a credible mitigation plan is better than a false claim of expertise.

Keep it concise. A capacity statement is not the place for an exhaustive organizational history. Focus on the most relevant evidence and present it efficiently. Reviewers have limited time and will respond better to a focused document than an encyclopedic one.

Common Pitfalls

• Describing the organization in general terms without connecting capabilities to the specific project
• Listing staff credentials without explaining their relevance
• Omitting quantitative evidence of past performance
• Claiming capabilities that cannot be substantiated
• Neglecting to describe financial management capacity and audit history

Your capacity statement is a trust-building document. It assures funders that their investment will be managed responsibly and that the project will be executed by a competent team within a capable organization. Take the time to gather the evidence, present it clearly, and connect it directly to the work you are proposing.