What is meant by “organizational capacity” in the nonprofit sector?

The concept of "organizational capacity" in the nonprofit sector refers to an organization's ability to effectively fulfill its mission by utilizing adequate resources. This encompasses not only the financial resources available but also includes staff expertise, infrastructure, organizational structure, and community support. A nonprofit must have a well-rounded capacity to deliver its programs and services, respond to challenges, and achieve its goals.

Thus, selecting the option that highlights the holistic view of resources—beyond just financial aspects or staff numbers—aligns with the understanding that successful nonprofits need to leverage a variety of capabilities and assets to meet their mission effectively. This makes option B the most comprehensive and accurate interpretation of organizational capacity in this context.