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The Importance of Capacity Building and How to Get Started

Capacity building is the term used frequently by foundations and nonprofit leadership to ascertain the ability of an organization to effectively achieve it s mission. This article describes capacity building, and why it is important in addition to offering a starting point for engaging in capacity building.

Definition of Capacity Building

Capacity building is defined as the ability of an organization to achieve their mission in an effective manner. It can also be described as the strategies or actions that an organization takes to ensure that it has the resources needed to succeed. These actions can include: resource development, financial management (diversification of funding sources), organizational learning, leadership development and other activities. In other words, capacity building is any set of actions that an organization takes to improve its ability to perform successful in its chosen area.

The term or concept also relates to the commitment of foundations and other entities to help nonprofit organizations to become high performing entities by supplying information, instruction and guidance.

Importance of Capacity Building to Future Success

Nonprofit organizations occupy an invaluable niche in a community. These entities provide needed social services, education, health care and the arts that improve the well being of the community and on which many people depend. The environment in which nonprofits operate has become increasingly complex and challenging as demand for their services increases while their conventional funding streams become more limited, and new technologies emerge that offer new venues for fundraising or interacting with potential and existing supporters.

Capacity building is important because it encourages the leadership of a nonprofit to evaluate their abilities to perform in a complex environment. For example, is the organization missing potential fundraising opportunities by not having a website with the capacity to solicit and receive donations? Should the organization develop its staff so that they can provide a new service that is complementary to their existing array of services?

In addition, capacity building is important because the evaluation process coupled with the implementation component help ensure organizational success and sustainability.

How to Get Started

Deciding change is needed is the first step. Once the need for change has been agreed upon, board members and management should undertake the following (most commonly done as part of their strategic planning process):

1. Evaluate the environment (external) and organization (internal)

Why Belize?

Business Friendly Tax Regime

Business Friendly Tax Regime

Income Tax

  • Payable at a rate of 25% on taxable income for all employed residents in Belize earning over BZ $26,000 (US$13,000) per annum.

Business Tax

  • Businesses, companies and self-employed persons earning in excess of BZ $54,000 per annum must pay business tax.
  • Rate varies according to business classification.
  • Paid monthly to the Income Tax Department.
Business Classification Rate of Business Tax
Trade or Business 1.75%
Professional Services 6.0%
Commissions and Royalties 5.0% & 15.0%
Rental Income 3.0%
Radio, On-air TV, and Newspaper Revenue 0.75%
Domestic Airline Revenue 1.75%
Insurance Institutions General Revenue 1.75%
Telecommunications Revenue 19.0%
Fuel/Lubricant Revenue 0.75%
Casino and Gaming Revenue 4.0%
Real Estate Business 15.0%
Tour Operators & Travel Agents 6.0%


General Sales Tax (GST) Continue reading “Why Belize?”

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