The Power of General Operating Support – Why Unrestricted Funding Matters
For years, nonprofit leaders have emphasized the importance of general operating support (GOS)—flexible, unrestricted funding for core operational expenses, leadership development, staff salaries, and strategic growth. Unlike project-based grants with specific spending restrictions, GOS gives nonprofits the financial agility to focus on long-term sustainability and mission-driven innovation.
However, many funders hesitate to provide unrestricted support, often preferring outcome-driven, project-based funding. To secure GOS, nonprofits must effectively demonstrate their impact, financial responsibility, and long-term vision.
Below are key reasons why GOS is crucial and how your nonprofit can better position itself to receive this funding:
1. GOS Strengthens Nonprofit Infrastructure
Many funders prioritize direct program funding but overlook the backbone of nonprofit success: operational capacity. Even the most impactful programs can falter without strong leadership, adequate staffing, and effective systems.
📌 How to Position Your Nonprofit:
In grant applications, highlight how operational stability improves program outcomes (e.g., retaining staff, investing in technology, or expanding services).
Emphasize that GOS isn’t just about keeping the lights on—it’s about sustainability, innovation, and scaling impact.
2. Funders Are Increasingly Recognizing the Value of GOS
A growing number of philanthropic leaders advocate for trust-based philanthropy, which encourages funders to provide multi-year, unrestricted grants to nonprofits so that they can use funds as needed.
📌 How to Position Your Nonprofit:
Research foundations that explicitly offer general operating support (e.g., The Ford Foundation’s BUILD program).
Use language that aligns with trust-based philanthropy principles, emphasizing transparency, collaboration, and long-term partnerships.
3. How to Make the Case for General Operating Support in Your Proposals
Many funders still default to program-restricted grants because they want tangible, measurable results. The key to securing GOS is to frame unrestricted support as essential to achieving measurable impact.
📌 How to Position Your Nonprofit:
Demonstrate how GOS will directly strengthen program delivery and enhance long-term sustainability.
Share impact metrics that show how previous unrestricted funding has helped scale or improve services.
Be transparent about financial health and responsible stewardship of unrestricted funds.
Final Thoughts
General operating support is more than unrestricted funding—its an investment in organizational strength, resilience, and long-term impact. By effectively arguing why flexible funding is essential to nonprofit success, organizations can increase their chances of securing GOS and developing lasting partnerships with funders. As trust-based philanthropy gains momentum, now is the time to refine your messaging, build relationships with funders who prioritize unrestricted funding, and position your nonprofit for sustainable growth.
