Despite high profile of foundation funding for capacity building within the organisations and communities they support, little comprehensive data exists about capacity building needs within foundations or about action taken to address them:How can a single capacity building agenda apply when foundations are so diverse -- in organisation and purpose, background and culture, methods of work?There is ambivalence within many foundation Boards about the value of investment in the capacity of own organisation.This report is based on the conviction that: "building a knowledgeable, skilful and confident staff and Board are pre-requisites for creating and maintaining a foundation that is able to operate in practice to high standards, that gets the best from its own staff and Board, that provides an excellent service to those organisations and communities with which it works, that reflects on and learns from its own work and those of its partners, and that has good prospects of achieving the changes and outcomes to which it aspires." The report aims to show how the EFC can help make that happen