The Power of Flexibility: Why General Operating Support Matters

When funders give general operating support, they invest in a nonprofit’s mission, not just a specific project. This flexible funding allows nonprofits to decide how best to utilize the money, potentially for adjusting salaries, investing in technology, enhancing fundraising efforts, or strengthening their overall operations. It’s about helping organizations stay strong and resilient.

Foundations with few or no staff are often well-suited to offer this kind of support because they have a deep understanding of their communities and strong relationships with nonprofit leaders.

Why General Operating Support Is Valuable

General operating grants:

• Let nonprofits focus on their missions, not just chase projects and funding.
• Demonstrate trust in nonprofit leadership, which can help reduce burnout.
• Foster a more equitable relationship between funders and nonprofits, prioritizing the impact of their work and the overall success of their mission.

You can track progress on general operating grants without overburdening your grantees. Keep reporting requirements proportional to the grant size, and when possible, offer flexibility, like mid-grant conversations or accepting reports prepared for other funders.

Measuring Outcomes

Some funders shy away from general operating support because they are unsure how to measure its impact. Although general operating grants require a high level of trust, foundations can use a variety of questions and techniques to assess success.

Sister David Ann Niski, executive director of the Bernardine Franciscan Sisters Foundation in Virginia, asks meaningful but straightforward questions about the impact of the foundation’s general operating grants, such as:

“Is the organization still running, financially sound, and operating high-quality programs that benefit our community?”

Kathleen Odne, a board member of the Dean & Margaret Lesher Foundation in California, suggests broader questions to consider when evaluating the impact of general operating support:

• Are we multiplying resources? Does the grant and its reputational capital encourage investments from others? General operating support can help organizations secure additional, and often easier-to-obtain, funding for their programs.

• Are we building capacity (e.g., infrastructure, staffing)? Can we use our intellectual capital to strengthen the organization’s long-term sustainability?

As you track the progress of your general operating grants, please be careful not to overburden grantees. Judy Peckham, executive director of the Conrad and Virginia Klee Foundation in New York, emphasized:

“Too often, as funders, we force our grantees to embark on new projects because that’s what we’re willing to fund. Yet, organizations with strong core programs often desperately need funds for administrative costs to maintain those programs’ strength. If you’re nervous about outright operating grants, consider granting more than a requested project budget to offset administrative costs for that project.”

Build Trust with Grantees

Strengthen your relationships by inviting current, past, and potential grantees to share their greatest needs and asking whether general operating support would be helpful. These conversations show that you are open to dialogue and your willingness to be responsive.

The Bernardine Franciscan Sisters Foundation received this feedback from one of its grantees:

“Core operating support has allowed [The Boys and Girls Club] to avoid mission drift in seeking funding.”

Another grantee shared:

“This grant has been beneficial by assisting with our greatest of needs: fundamental operating expenses.”

General Operating Support Grants by Lean Funders

According to the 2025 Foundation Operations and Management Report, three-quarters of foundations (75%) reported making single-year general operating support grants. In comparison, only 28% were awarded multiyear general operating support grants.

Foundations also dedicated a larger share of their grant budgets to single-year grants (41%) than to multiyear grants (31%). On average, foundations awarded 37 single-year grants compared to 15 multiyear grants.

The average amount for single-year general operating grants was $48,696, while multiyear grants averaged $56,587 over a typical grant period of three years.

Learn About Other Types of Grants in the 2025 FOMR »

Is General Operating Support Right for You?

Should your foundation provide general operating support grants? It depends on your grantmaking goals, your strategy for achieving them, your community’s needs, and the best ways to address those needs. It also depends on your board’s preferences and the types of grants that keep them engaged.

Whether or not you decide to offer general operating support, it’s essential to contemplate its potential impact. This type of funding can significantly benefit both your foundation and the nonprofits you support, and it remains one of the most common requests from nonprofits in Grantee and Applicant Perception Surveys.

Here are some steps to consider:

• Use this and other resources to educate your board about the value and impact of general operating support.
• Engage with fellow grantmakers to learn from their experiences and offer general support.
• Consider dedicating a portion of your grantmaking budget to general operating grants. Discuss a potential strategy and process for managing these grants.
• Identify prospective grantees. Does the organization have a strong track record of success, or is it a start-up you’re excited to invest in? Does it have the leadership and systems in place to manage unrestricted funds effectively, or could your support help build those capacities?
• Ask grantees if general operating support would help. Critical operating costs are often the most challenging to fund, and grantees may not mention the need unless specifically asked. Many are used to foundations that prefer project-based funding.

As more funders adopt general operating support, we would like to encourage you to learn more by reaching out to Exponent Philanthropy staff and fellow members.

Learn More

Access the 2025 Foundation Operations & Management Report »

Non-Members Can Download the Executive Summary for Free »

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