Based on survey data from 396 small to mid-sized nonprofit organizations operating within Southeast lower Michigan, this article examines the relationship between program development capacity and readiness for change and the predictors of these two components of capacity building among small to mid-sized nonprofits. It uses a simultaneous equation approach as the basis for examining the relationship between program development capacity and readiness for change. The findings indicate that program development capacity and readiness for change are mutually enforcing processes and that the levels of program development capacity and readiness for change are predicted by two distinct sets of predictors.
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