Suggestions for Securing General Operating Grants

The general operating grant is the Holy Grail of the non-profit world, because it is flexible money that provides the working capital every organization needs to effectively carry out its mission. However, successfully obtaining general operating funds requires carefully thought out proposals and targeting funding requests to foundations.

General Operating Funds

General operating support, also known as unrestricted funding, is probably the most desirable forms of grant and most sought after because of the latitude it allows organizations. General operated funding supports an organization's operations as a whole rather than to particular projects. Many nonprofit organizations do not rely on foundations for general operating support due to the year-to-year basis of the funding.

A National Committee for Responsive Philanthropy report in 2005 found that though two-thirds of the nonprofits surveyed said they lack adequate funding for their overhead, 75 percent reported that they do not rely on foundation funding to pay for such core operations. However, a diversified funding base that includes foundation support for overhead creates a more stable annual budget.

How to Get Unrestricted Support

First, look to current funders.

Organizations have already developed a relationship with these foundations and have an established successful track record. According to a Center on Philanthropy report, many nonprofit organization leaders believe that foundations want to support start-up costs for innovative programs but not long-term funding. As a result, nonprofit organizations tend to use foundation funding to enhance programs or cover periodic expenses such as capacity building or board training. While effective, nonprofit organizations may be missing a potential opportunity for a larger grant, or even multiple-pronged support.

Second, research the foundations.