Strategic Program 10: Community-Based Organization Capacity Building Program

Capacity Building program

We are launching a new cohort-based capacity building grant program for Portland-based nonprofit organizations advancing community-led climate action. This program focuses on strengthening organizational infrastructure, leadership, and internal systems rather than funding project implementation. By investing in core organizational capacity, including but not limited to, financial management, staffing, and internal operations, organizations are better positioned to manage public funding, sustain their work, and deliver stronger climate outcomes over time.

How to apply

The application process has two stages:

• A short eligibility pre-application. This step asks for basic organizational information and brief summaries to determine eligibility. This step is not a Letter of Intent and does not require narrative development, project proposals, or detailed budgets.

• A full application. Organizations that pass the pre-eligibility review will be invited to complete the full application. The full application will include additional organization descriptions, financials, and an organizational capacity assessment.

All applications must be submitted through the City's WebGrants Portal. Applicants are encouraged to register or verify previous WebGrants registration prior to the pre-application deadline. More information about the application stages, timeline and how to navigate WebGrants can be found in the Capacity Building Cohort Applicant Handbook.

Open office hours

Office hours are open to all who would like to ask questions of staff and listen to the questions of others in a virtual group setting. Registration is required to attend.

Capacity Building Office Hours #1 – April 22, 12-1 p.m.

Register here for Office Hours #1

Capacity Building Office Hours #2 – April 29, 12-1 p.m.

Register here for Office Hours #2

Eligibility and cohort selection

The Community-Based Organization Capacity Building Cohort Program is intended for Portland-based nonprofit organizations whose mission and core activities include climate-related work aligned with PCEF climate funding areas.

The first cohort will consist of up to 10 community-based organizations. To be eligible, organizations must be an eligible nonprofit with an annual operating budget of $2 million or less, demonstrate a clear connection between organizational capacity needs and their ability to advance climate outcomes, and be actively engaged in climate action as defined by PCEF, for a minimum of three years. Additional eligibility details and requirements are outlined in the Capacity Building Cohort Applicant Handbook.

Organizations will be selected based on responses to both the pre-application and full application. Review panels will assess pre-application for eligibility and score full applications to inform final funding recommendations and cohort selection. More information about cohort selection can be found in the Capacity Building Cohort Applicant Handbook.

Participation in the program

Selected organizations will participate in a three-year cohort and commit to ongoing capacity building activities designed to improve organizational effectiveness, leadership, and long-term stability. Participation includes up to 15 hours per month, which may include, but is not limited to coordination with capacity building service providers, learning sessions, peer convenings, and required reporting.

In addition to staffing and operating funds, participating organizations will be paired with City-contracted capacity building service providers at no cost to the organization. Support will be tailored to organizational needs and may include areas such as financial management, communications, leadership and governance, staffing and operations, and data or technology systems. The goal of these services is to strengthen organizational capacity and support long-term success. Participation in capacity-building services and activities is required for selected grantees. More information about participation in the program can be found in the Capacity Building Cohort Applicant Handbook.

Use of funds

Selected organizations may receive up to $150,000 per year for three years contingent on participation and completion of required reporting. Grant funding is intended to support an organization's ability to participate fully in the cohort and strengthen internal capacity. Funds may be used for operational expenses and staffing costs that strengthen internal systems, improve organizational stability, and increase an organization's capacity to fully engage in the cohort. Funds may not be used to implement new projects or new programs. More information about use of funds can be found in the Capacity Building Cohort Applicant Handbook.

Pre-application and full application timeline

• April 2026: Program overview and eligibility information released
• April 15, 2026: Eligibility pre-application opens
• May 6, 2026: Pre application closes
• May 2026: Eligibility pre-application review and notifications sent to applicants
• May 26, 2026: Full application opens
• June 22, 2026: Full application closes
• Summer 2026: Cohort selection and notifications sent to applicants

Program participation timeline

• Summer 2026: Grantee onboarding begins
• Fall 2026: Program participation begins
• Fall 2029: Program participation ends

Learn more

Read about our Capacity Building Program on our Strategic Programs page

Read the Ordinance on the Portland City Council page

Frequently asked questions

How many organizations will be selected?

8–10 organizations per cohort.

How long does the program last?

Three years.

Is this a grant or a program?

Both. Organizations receive funding, but participation in the cohort and technical assistance are required components.

Can funds be used flexibly?

Yes, within capacity-building purposes. Not for new project implementation.

What kind of support is provided?

Technical assistance, funding, cohort learning, and structured support over time.

Do organizations choose their own technical assistance? 

There is some flexibility, but support is guided and aligned with available providers and participant needs.

Can organizations apply for both this and Community Grants?

Yes, with guidelines to prevent overlap and overextension during transition and growth for nonprofits. Please refer to the multi-award section in the Capacity Building Applicant Handbook for more details.

Can an organization participate in the cohort if they already have a Community Grants implementation award?

Yes, depending on timing. Organizations may participate if they hold an implementation award from a previous Community Grants cycle, such as the 2025 Community Grants cycle or earlier. Organizations may not participate in the cohort during the same year that they hold a Community Grants implementation award from the 2026 cycle.

Why can't organizations hold an implementation grant while in the first year of the capacity building cohort?

This is to ensure organizations can focus on successfully strengthening internal systems rather than splitting attention across competing priorities. A capacity building grant does not ensure the organization will be guaranteed a grant to implement future projects. Each PCEF funding program is based on its own unique review and scoring process.

How are decisions made? 

Through a structured review process that considers both applicant needs and overall cohort composition.

How are applications reviewed and scored?

Applications are reviewed across the key areas reflected in the application, including climate alignment, connection to priority populations, organizational capacity and operations, financial management, systems, identified capacity needs, proposed use of funds, and readiness to participate. Applications are reviewed using a structured scoring process across multiple areas. Scores are one part of the review process and do not, on their own, determine advancement or selection. Final selections also consider how organizations will function as part of a peer learning cohort.

Additional details on the review process and scoring approach is available in the Capacity Building Cohort Applicant Handbook, Section 5.

What makes an organization a strong fit for this program?

Organizations that already have climate-aligned work in place and are experiencing operational strain tend to be the strongest fit. This includes organizations that have outgrown their current systems, need stronger financial or administrative infrastructure, or are preparing to manage larger funding in the future.

What makes an organization not a good fit right now?

Organizations that are new to climate work, are primarily seeking project funding, or cannot commit time to a three-year cohort are not a strong fit. Organizations experiencing significant instability should also consider whether they are ready to engage in a structured, multi-year program.

How is this different from Community Grants?

Community Grants typically fund project implementation and some planning grants. This program funds internal organizational capacity. The goal is to prepare organizations to successfully manage and implement future project-based funding. 

Can organizations use this funding to implement new projects?

No. Funding must be used to strengthen internal systems. While those improvements may support future program growth, the funding cannot be used to directly implement new projects.

Can an organization apply if they are currently managing a PCEF grant?

Yes, but restrictions apply. Organizations may not hold an overlapping 2026 Community Grants implementation or Regenerative Agriculture and Green Infrastructure 2026 operational support grants during participation in the cohort. Planning grants may be allowable. The multi-award section details these specifics.

What does "capacity building" actually mean in this program?

Capacity building for this program refers to strengthening the internal systems that allow an organization to operate effectively. This includes staffing, financial management, governance, planning, internal processes, and infrastructure that supports long-term sustainability.

How much time should organizations expect to commit?

Organizations should expect to dedicate consistent time each month to cohort participation, technical assistance, and reporting. Participation is an active requirement of the program.

What happens if an organization cannot keep up with participation requirements?

Organizations are expected to communicate early if challenges arise. Continued participation and access to funding are tied to meeting program requirements, including engagement and reporting.

How flexible is the funding?

Funding is flexible within the scope of capacity building. Organizations have discretion in how funds are used, if expenses are clearly tied to strengthening internal systems and aligning with program guidelines.

Is the $2M organizational budget threshold a firm eligibility requirement?

The $2 million organizational budget threshold is a firm eligibility requirement, calculated using the average of the most recent three consecutive operating years. Organizations above this threshold are not eligible for this program.

Do organizations have to use specific service providers?

Technical assistance is delivered through a pre-qualified pool of City-contracted providers. Organizations will have some flexibility, but support is guided based on availability and alignment with organizational needs. 

What if an organization already has strong systems in place?

This program is intended for organizations that have identifiable capacity gaps. Organizations with highly developed systems may not be as competitive, as the program is designed to support organizations where capacity-building investment will have a clear impact.

How is "readiness" evaluated?

Readiness is assessed through the application and includes factors such as operational stability, clarity of capacity needs, ability to engage in a multi-year program, and an ability to manage public funds.

How competitive is the program?

The program is competitive. More organizations are expected to apply than can be selected. Selection is based on both application strength and cohort composition.

Are scores the only factor in selection?

No. Scores are a primary input, but final selection also considers cohort balance, organizational size, capacity need, climate alignment, and alignment with available technical assistance.

Will applicants receive feedback if they are not selected?

Feedback may be limited depending on application volume and staff capacity. Applicants will be notified of their status, but detailed feedback is not guaranteed.

Can organizations reapply if they are not selected?

Yes. Organizations may apply again in future cycles if they continue to meet eligibility requirements.

Why is there a three-year commitment?

Capacity building takes time. A multi-year structure allows organizations to make meaningful changes to systems, test improvements, and stabilize operations before taking on additional funding. 

What happens after the three-year program ends?

Organizations are expected to be better positioned to manage larger funding opportunities, including implementation grants, and to sustain their work with stronger internal systems.

Can an organization apply with a fiscal sponsor?

Yes. Organizations that are not eligible nonprofit entities may apply with a qualified fiscal sponsor that can enter into a grant agreement with the City and manage funds in compliance with program requirements.

Does the three-year funding guarantee all three years of funding upfront?

No. Funding is structured across three years but is contingent on meeting program requirements, including participation, reporting, and compliance. Grant agreements are carried out annually.

Is funding paid upfront or reimbursed?

Funding from PCEF is generally provided on a reimbursement basis unless otherwise specified in the grant agreement. However, the option for payment advancement is available to cohort participants. Payment disbursement may be adjusted, paused, or rescinded if program requirements are not met. Organizations should be prepared to manage cash flow accordingly. Funds spent prior to a signed grant agreement will not be reimbursed.

Can organizations hire new staff with this funding?

Yes. Organizations may use funding for staffing if those positions are tied to strengthening internal capacity and meet PCEF wage requirements. Please refer to applicant handbook for staffing wage requirements.

Why did this program not launch with the other CIP programs?

The Capacity Building program includes multiple components including multi-year funding, technical assistance, and a provider selection process. It was sequenced intentionally to ensure these elements are aligned at launch, so participating organizations can receive coordinated and effective support.

What happens if an organization's budget grows above $2 million during the program?

The $2 million revenue threshold applies at the time of application. If an organization grows during the program, it does not affect continued participation if program requirements are met.

Can organizations leave the program early?

The program is designed as a three-year commitment. If an organization is unable to continue, they must work with program staff to determine next steps. Continued funding is directly tied to participation.

What if an organization's leadership changes during the program?

Leadership changes do not automatically affect participation, but organizations are expected to maintain stability and communicate changes to program staff. Continued participation depends on the organization's ability to meet program requirements.

How is technical assistance matched to organizations?

Technical assistance is aligned based on application responses, identified capacity needs, and available service providers. Support may evolve over time as needs change.

Is there a minimum or maximum amount organizations must request?

Organizations may request up to the maximum allowed. Requests should reflect actual capacity-building needs and the organization's ability to effectively use funds over time.

What happens if an organization underspends or does not use all funds?

Organizations should work with program staff to adjust scope or funding use as needed. Continued funding is tied to appropriate use of funds. Underspent funds may result in the funds being rescinded.