The Power of Flexibility: Why General Operating Support Matters

When funders provide 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 use resources, whether that means adjusting salaries, investing in technology, strengthening fundraising efforts, or covering operating costs. At its core, general operating support helps organizations stay strong, responsive, and resilient.

Foundations with few or no staff are often well positioned to offer this kind of support. Close relationships with nonprofit leaders and a deep understanding of community needs can make it easier to fund organizations holistically rather than through narrowly defined projects.

Why General Operating Support Is Valuable

General operating grants can:

• Help nonprofits focus on their missions instead of chasing projects and short-term funding
• Demonstrate trust in nonprofit leadership, which can reduce burnout and turnover
• Foster more equitable funder–grantee relationships by prioritizing mission and organizational health

Importantly, funders can track progress on general operating grants without overburdening grantees. Many foundations keep reporting requirements proportional to grant size and rely on flexible approaches, such as mid-grant conversations or reports already prepared for other funders.

Measuring Outcomes Without Adding Burden

Some funders hesitate to offer general operating support because they are unsure how to measure its impact. While these grants do require a degree of trust, they do not require abandoning accountability.

Sister David Ann Niski, executive director of the Bernardine Franciscan Sisters Foundation in Virginia, focuses on straightforward indicators of organizational health when assessing the impact of general operating grants:

“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, encourages funders to look beyond individual programs and consider broader questions:

• Are we multiplying resources? Does the grant help attract additional funding or investment?

• Are we building capacity, such as infrastructure or staffing, that strengthens long-term sustainability?

As funders evaluate progress, many emphasize the importance of not creating unnecessary work for grantees. Judy Peckham, executive director of the Conrad and Virginia Klee Foundation in New York, cautioned:

“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.”

Building Trust Through Dialogue

General operating support can also strengthen relationships when paired with open communication. Inviting current, past, and prospective grantees to share their greatest needs—and asking whether general operating support would be helpful—signals a willingness to listen and adapt.

One grantee of the Bernardine Franciscan Sisters Foundation shared:

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

Another nonprofit noted:

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

These responses echo what many nonprofits share through Grantee and Applicant Perception Surveys: unrestricted funding aligns more closely with the realities of running an organization.

What the Data Show

Recent data underscore both the importance—and the limits—of general operating support when it is provided primarily on a short-term basis.

According to Exponent Philanthropy’s 2025 Foundation Operations and Management Report, most foundations report making general operating grants, but those grants are far more likely to be awarded for a single year than over multiple years. While single-year GOS offers meaningful flexibility, annual renewals can still leave nonprofits navigating uncertainty and devoting time to repeated fundraising cycles.

This pattern suggests that flexibility alone, when paired with short time horizons, may not fully deliver the stability nonprofits need to plan, invest, and sustain their work over time.

Learn About Other Types of Grants in the 2025 FOMR »

Is General Operating Support Right for You?

Whether general operating support is a fit for your foundation depends on your grantmaking goals, community needs, and board preferences. Even so, it remains one of the most common requests nonprofits make of funders—and one of the clearest ways to support organizational health.

Foundations considering general operating support often start by:

• Educating board members about the role of flexible funding in nonprofit effectiveness
• Learning from peer funders about how they structure and assess general operating grants
• Dedicating a portion of grant budgets to unrestricted support
• Asking grantees directly whether general operating funding would help address critical needs

For many nonprofits, operating costs are the hardest to fund—and the most essential. Asking the question can be a meaningful first step.

Editor’s Note

This article focuses on why general operating support matters and how flexibility shapes nonprofit effectiveness. For funders interested in exploring how flexibility works best when paired with predictability over time, read Multiyear Funding and General Operating Support: Why They’re Stronger Together, which draws on Exponent Philanthropy’s 2026 primer, The Hows and Whys of Multiyear General Operating Support.

Learn More

Access the 2025 Foundation Operations & Management Report »

Non-Members Can Download the Executive Summary for Free »

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