Supporting Nonprofits Where They Work: Local Capacity Advisors in Action

Written by Toni White | Nov 12, 2025 9:16:26 PM

Nonprofits often face a common challenge: how to grow their impact without overburdening staff or losing focus. Catalyst Exchange is piloting a new approach to capacity advising, testing how regional and national intermediaries can step into the role of Capacity Advisors—trained thought partners who help an organization take a step back, examine its operations, and identify opportunities to be more effective. Think of it as a combination of coach, advisor, and guide helping organizations make practical, actionable changes based on evidence and reflection, whether that’s strengthening leadership, improving operations, or clarifying strategy. 

The pilot is exploring a new approach: training regional and national networks, such as Purpose Built Communities and Promise Partnership Utah, to take on or expand this advisory role themselves. The goal is straightforward: to bring high-quality advising closer to where organizations operate, while providing intermediaries with the tools and confidence to lead structured and adaptable conversations tailored to local needs that leverage their existing relationships.

How capacity advising works in practice

Capacity advising is not just giving advice. It’s about:

  • Leveraging the data
    Helping organizations understand what’s going well, what could be improved, and why.
  • Reflecting together
    Giving leaders a chance to pause, step back from daily operations, and think about long-term goals.
  • Prioritizing action plans
    Turning insights into practical steps that the organization can take immediately and over time.
  • Surfacing patterns across a cohort
    Looking across organizations to identify common themes, challenges, and opportunities that can inform both local strategy and broader sector learning.

For example, a Capacity Advisor might help a small nonprofit understand why its programs are successful in some neighborhoods but not others, and then develop steps to improve reach or efficiency, all in a way the organization owns and can continue to implement.

The pilot: Training advisors to think differently

The pilot program provides intermediaries with hands-on training in Catalyst Exchange’s tools and approach. Participants practice analyzing organizational data, facilitating reflective conversations, and guiding partners to make informed decisions based on evidence.

The aim is not to create “cookie-cutter” advising, but to help intermediaries:

  • Gain confidence in leading structured advising conversations
  • Adapt the approach to the unique context of each organization
  • Apply a repeatable process that surfaces patterns, strengthens decision-making, and builds lasting capacity

This approach also strengthens intermediaries themselves, enabling them to develop a structured way to support organizations within their networks, increase engagement, and generate buy-in for change. Over time, it also enables us to identify common themes across networks and establish clearer pathways for funders who want to channel resources into proven and scalable models.

Why this matters for nonprofits and the sector

By equipping intermediaries to serve as Capacity Advisors, the pilot makes advisory support more accessible, timely, and locally informed. Organizations can benefit from guidance that is:

  • Closer to home
    Delivered by advisors who understand local context and organizational culture
  • Consistent and structured
    Following a tested framework for reflection and action
  • Practical and actionable
    Focused on realistic steps leaders can implement right away

Looking ahead

Over the next year, pilot participants will continue to practice, reflect, and refine their skills. The lessons learned from this pilot will help Catalyst Exchange improve the model, while offering the sector a tangible example of how capacity advising can be scaled, grounded, and practical.

The pilot is more than a training program—it’s an opportunity to shift how advisory support is delivered, helping nonprofit leaders see what’s working, make sense of the challenges they face, and take meaningful steps toward stronger, more effective organizations.