Organizational capacity describes your experience managing projects AND your capacity to manage public funds. How long has your organization been around? Who are the key players on the project and what’s their experience? What’s your organization’s experience managing grants? What types of financial controls do you have? The feds now conduct a pre-award capacity review before making grants. If you cover in the application what they look at in the pre-award review, not only will it make your application stronger but you’ll make the awarding agency’s life easier—and that’s always a good thing.