This page is part of our successful commissioning toolkit.
One reason public bodies give grants to third sector organisations (TSOs) is to build their capacity to deliver public services. Often, these services will be for people in great need and who are hard to reach. Sometimes, a particular TSO may be the only organisation that can reach the group. But the TSO may lack capacity in areas such as governance, human resources and premises. In such cases, the public body may decide on a capacity building grant. The grant will often be paid to an infrastructure body, such as the Council for Voluntary Service (CVS), which will use the grant to build the TSO’s capacity. At the end of the period, the TSO will be more able to take part in an open, competitive process for money, which could be a procurement process or a competitive grants process.