Capacity Building Grant Program

The Capacity Building Grant Program is administered by the Wisconsin Economic Development Corporation (WEDC), a state-level economic development agency tasked with advancing Wisconsin’s economy through strategic investments and partnerships. The program is designed to strengthen organizations that drive local and regional economic development by enhancing their internal capacity, expanding their programming capabilities, and supporting innovative approaches to economic challenges. It serves as a flexible funding mechanism that allows WEDC to respond to emerging economic development needs while also acting as a testing ground for pilot initiatives that may later become formalized programs. The primary purpose of the program is to support nonprofit organizations, governmental entities, Tribal organizations, educational institutions, and cooperative-focused entities in building their ability to deliver impactful economic development services. The program emphasizes projects that address systemic challenges, improve competitiveness, and generate long-term benefits for communities across Wisconsin. Eligible initiatives must be tied to economic development outcomes and are expected to be scalable, replicable, and capable of informing broader statewide strategies. Funding through the program is generally awarded in amounts up to $50,000 per project, with matching funds required depending on the project’s characteristics. The program supports a wide range of allowable activities, including economic competitiveness assessments, development of new or enhanced programming, consulting services such as feasibility studies and legal support, and the replication of proven economic development models. Additional eligible uses include operational and consultant costs directly tied to approved projects. However, certain costs are explicitly ineligible, including expenses incurred prior to approval, staff wages in most cases, in-kind contributions, and construction-related costs. Eligibility is broad but targeted toward organizations engaged in economic development within Wisconsin. Applicants must be local, regional, Tribal, or statewide nonprofit organizations, educational institutions, or entities seeking to establish or expand cooperatives. Certain program tracks, such as Thrive Rural, require pre-approval or selection by specific state offices. Projects must demonstrate alignment with economic development goals, including improving workforce capacity, infrastructure, or community sustainability. Applicants are also expected to collaborate regionally and demonstrate the ability to influence economic conditions within their service areas. The application process is continuous, allowing organizations to apply at any time throughout the year. Prospective applicants are required to first engage with a WEDC Account Manager to determine project eligibility and alignment with program goals. Upon confirmation, applicants are invited to submit a formal application through the Network Wisconsin system. The review process includes underwriting and evaluation based on criteria such as long-term impact, regional collaboration, financial need, scalability, and benefits to rural or underserved communities. Award decisions are based on a combination of qualitative and quantitative factors, including the likelihood of sustained impact, the applicant’s reach and influence, and the degree of collaboration involved in the project. Additional considerations include the project’s replicability across Wisconsin and alignment with regional economic development strategies. Successful applicants are required to complete periodic performance reporting, documenting project outcomes such as businesses assisted, individuals served, and plans completed. Financial records and supporting documentation must be maintained for at least three years following the final report, and selected projects may be subject to audit. Overall, the Capacity Building Grant Program functions as both a funding source and a strategic tool for strengthening Wisconsin’s economic development ecosystem. By prioritizing flexibility, collaboration, and innovation, the program aims to build organizational capacity while generating insights and models that can be scaled across the state to support long-term economic growth.

Emphasize long term impact and replicability; demonstrate regional collaboration; highlight benefits to rural or underserved communities; clearly show financial need and organizational capacity