Effective Capacity Building in Nonprofit Organizations, published in August 2001 by Venture Philanthropy Partners, brings some common language to the discussion of capacity building and offers insights and examples of how nonprofits have pursued building up their organizational muscle. The report contributes to the growing national conversation about how to help nonprofits become stronger, more sustainable and better able to serve their communities. McKinsey & Company prepared the study at the request of VPP. McKinsey also developed a practical assessment tool for this report that nonprofits can use to measure their own organizational capacity. We hope that nonprofits and funders alike find value in this report.