The literature regarding nonprofit capacity building is expanding as funders, infrastructure support organizations, researchers, and others interested in strengthening the sector work to develop a better understanding of how to build organizational capacity effectively. In the spirit of this inquiry, The Forbes Funds commissioned Judith Millesen, at the Voinovich Center for Leadership and Public Affairs at Ohio University, and Angela Bies, at the Bush School of Government & Public Service at Texas A&M University, to examine the incentives associated with engagement in capacity building. Specifically, the research team used organizational theory to frame an examination of the ways in which environmental characteristics, institutional attributes, and financial characteristics relate to the incentive to engage in capacity building.