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.

Funding research is a key element of successfully obtaining general operating support. Before submitting a proposal asking for unrestricted funding, be sure that the foundation provides this type of support. When researching grant sources, don't just limit search criteria to "unrestricted" or "general operating." Instead, start with a wider swath of foundations that provide funding in relevant areas (i.e. children's issues, health, education) and then examine a foundation's funding. The Foundation Center is an excellent research resource.

Third, directly contact the foundation officer prior to submission.

Whether the foundation is a current supporter or new prospect, a general operating grant can be a tougher sell. The advice of a foundation officer can make or break a proposal, from insights about current priorities to advice about what will make the proposal more desirable to the foundation. Be courteous and approach with questions in their preferred format (i.e. e-mail or phone), have a concrete idea and pitch, and ask intelligent questions.

Finally, allow plenty of time to develop the proposal.

A well-developed grant proposal takes time to put together and write. Much like a project support grant proposal, a general operating support request should have a clearly delineated rationale for support and a strong needs statement. Grant writers and program staff should work together to craft a strong argument for how the unrestricted funding will benefit the greater population and not just the organization.

A well-researched and written unrestricted funding request may be favorably viewed when sent to the right potential funder. General operating funds are difficult, but not impossible to obtain, and nonprofit organizations need them for long-term sustainability.

Sources:

National Committee for Responsive Philanthropy, Not All Grants are Created Equal Report

Center on Philanthropy at Indiana University, Paying for Overhead Report