# Capacity for action

The organization executing the project must provide documentation of their capacity to successfully implement and monitor the project in their area. In addition to the legal documents, the team should have demonstrated project management capacities. Ideally, the organization will have IP and LC among the management team. When the project is not run locally or by local people, the project team should provide justification for the remote management and demonstrate the capabilities of the team to execute the project.&#x20;

This methodology places emphasis on IP and LC involvement. Therefore, projects should consider cultural competency in all aspects of working with Indigenous people, from the capture of data all the way through direct payments to the people on the ground. The project execution team must provide details that show their consideration of the full circle of activities, and that they have a clear and transparent plan for implementation of the program with IP and LC.

Capacity for action includes the financial capabilities for the deployment of the project. The project should provide its financial projections and capitalization tables for the organizations involved. When outside investors are involved, projects should be transparent about the return on investment expectation of outside investors. Biodiversity credits for ISBM cannot be used for offsets, therefore the financial expectations of investors need to be aligned with this use of eventual credits. ​The structure of agreements or contracts to ensure administrative capacity should consider [safeguards](/project-description/effective-participation/safeguards-checklist.md).


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