Unrestricted grants, also known as general operating support, are highly coveted by nonprofits as they provide flexible funding for the organization's core mission. This type of support provides a crucial cushion to the overall budget, rather than being restricted to a specific project or program. This flexible capital allows organizations to invest in capacity, cover overhead, and respond effectively to changing community needs.
Types of grants for nonprofits
While many grants are restricted, a growing "trust-based philanthropy" movement is encouraging more funders to provide unrestricted, multi-year support. This funding can come from various sources, including venture philanthropy firms like the Draper Richards Kaplan Foundation, which provides unrestricted capital over a three-year period. Corporate funders like Wells Fargo and Bank of America also offer grants that can support general operations for organizations that align with their priorities.
Tips for getting grants
To secure unrestricted grants, nonprofits must build strong relationships with funders and demonstrate a clear track record of organizational effectiveness and sustainability. The key is to target foundations that explicitly state they offer general operating support or have a known trust-based, flexible funding philosophy.