Funders want to know that your entity is up to the job.  They want to know that you have the staff, the experience, and other resources to do the proposed project. They like to see a track record of successful work. This section of a grant might be quite lengthy, but here are two short, cut-and-pastable snippets on the organizational capacity of Intermediates 287 and 916.

Very brief organizational capacity description:

Over the past 30 years, the intermediate districts have carried out dozens of new initiatives. Many programs run by ISD 287 and Northeast Metro 916 have received federal, state, and private funding. We have successfully carried out projects  for the State Legislature, the Minnesota Department of Education (MDE), National Science Foundation, the US Department of Education, US Department of Labor, the Cooperation for National Service Initiative, and the Federal National School to Work Initiative. All projects were completed successfully and on-time.

Could be added to an organizational capacity description (and also appears above in the collaboration sample):

For over thirty years, the Intermediate Districts have been successful facilitators of cooperative educational achievement for hundreds of thousands of students, with a particular emphasis on meeting the needs of underserved populations, including those with special needs, gifted and talented students, and those who use vocational and technical programs. The funding we have received from the State Legislature, the National Science Foundation, the US Department of Labor, the US Department of Education; and the Minnesota Department of Education, and private funders speaks to the confidence that outside funders have in the quality of our services, including numerous teacher training and curriculum development initiatives, such as the one we propose to [Javits].